Electrify News’ Post

Ford Dealers Asked to Pause Further EV Investments While It Reviews Model e Program: Ford’s EV transition hasn’t been the easiest, but the automaker isn’t the only one in its orbit feeling the heat. The Blue Oval recently asked its suppliers to help it cut costs and announced early on that its dealers would need to make significant investments to continue selling its electric models. Now, the company is telling dealers to pause further investments while it reviews the requirements of its EV certification program. #car #cars #awesome

"Auto dealers across many parts of the country say electric vehicles are becoming too hard a sell for buyers worried about the range, reliability and price of these models. When Paul LaRochelle heard Ford Motor was coming out with anelectric pickup truck, the dealer was excited about the prospects for his business. “We thought we could build a million of them and sell them,” said LaRochelle, a vice president at Sheehy Auto Stores, which sells vehicles from a dozen brands in Virginia, Maryland and Washington, D.C. The reality has been less positive. On Sheehy’s car lots, LaRochelle says there is a six- to 12-month supply of EVs, compared with a month of gasoline-powered vehicles. With automakers set to release a barrage of new electric models in the coming years, concerns are mounting among auto retailers about whether the technology will have broader appeal given that many customers are still reluctant to make the switch. “I’m not hearing the consumer confidence in the technology,” said Mary Rice, dealer principal at Toyota of Greensboro in North Carolina. “People aren’t beating down the door to buy these things, and they all have a different excuse why they aren’t buying one.” Customers cite concerns about vehicles burning through a battery charge faster in cold weather or not being able to travel as far as they expected on a single charge, dealers say. Potential buyers also worry that chargers aren’t as readily accessible as gas stations or might be broken." https://lnkd.in/gJfcbj2z

Many articles lately claim Ford Motor Company is losing $100,000 per EV. How is this possible? Are losses per vehicle, including R&D, facility construction or retrofits, tooling, training, etc., amortized by each vehicle sold? If so, the more vehicles an automaker sale, the more the costs of R&D, facility construction or retrofits, tooling, training, etc., could be distributed, which would minimize the costs per vehicle to the point of profitability. Am I missing something? #automotive #manufacturing #costs #profitability #loses

Ford Motor Company (NYSE:F) unveiled significant price reductions for its F-150 Lightning #electricvehicle (EV) lineup on Monday, following a series of steep price hikes since its debut. The auto manufacturer stated that all trims of the Lightning would receive price cuts: its Pro commercial truck will now be around $10,000 less at a starting price of $49,995. Meanwhile, the top-of-the-line Platinum Extended range will receive a $6,079 price cut, resulting in a new starting price of $91,995. When #Ford initially launched the Lightning EV in 2021, the company had stated that the entry-level Pro commercial truck would start below $40,000. However, due to rising material costs, component shortages, and production issues, the Pro model's price soared to a manufacturer's suggested retail price (MSRP) of $59,974 prior to the recent price cuts, nearly $20,000 higher than initially promised. =More at #Proactive #ProactiveInvestors #NYSE #F http://ow.ly/jqni104Orfa

"A March report from Atlas Public Policy details the cost differences. While the savings vary depending on vehicle type and other factors, the report finds savings across all major vehicle types. After seven years, the total cost of ownership for an electric Chevrolet Bolt EUV is $10,500 less than that of the gas-powered Toyota Corolla LE, despite the similar sticker prices for the two compact sedans (about $22,000). That difference accounts for taxes and fees, insurance, fuel, maintenance and repairs, tax credits, and expected resale value." https://lnkd.in/ghT3x33t

(Foundation for Economic Education) Last month Ford announced it was slashing in half its production goal for its most popular electrical vehicle, the F-150 Lightning pickup truck. Bloomberg News reported that the company’s flagship plant in Dearborn, Michigan now intends to produce 1,600 vehicles per week in 2024, down from 3,200 in 2023. The move comes just months after Ford announced it was slashing prices on the Lightning by $10,000. And though the company cited lower “battery raw material costs and continued work on scaling production and cost” for its price cut, it’s becoming painfully obvious that low demand for EVs was the primary catalyst. Over the summer, numerous news reports showed manufacturers had vastly overestimated the market demand for EVs, evidenced by a massive glut on dealer lots. Many speculated that the excess amount stemmed from the tightened money supply following a series of Federal Reserve interest rate hikes. The problem with this hypothesis was that the glut of EVs was high even compared to that of gasoline-powered cars. As Axios reported at the time, the 92-day supply of EVs on dealership lots was “nearly twice the industry average.” #evehicles #ev #ford #fordf150

Looks like dealers are having a much tougher time selling EVs than advertised. Opportunity for a strategic investment in some good ole' gas powered vehicles, commodities, and stocks ------------- When Paul LaRochelle heard Ford Motor  increase; green up pointing triangle was coming out with an electric pickup truck, the dealer was excited about the prospects for his business. “We thought we could build a million of them and sell them,” said LaRochelle, a vice president at Sheehy Auto Stores, which sells vehicles from a dozen brands in Virginia, Maryland and Washington, D.C. The reality has been less positive. On Sheehy’s car lots, LaRochelle says there is a six- to 12-month supply of EVs, compared with a month of gasoline-powered vehicles. With automakers set to release a barrage of new electric models in the coming years, concerns are mounting among auto retailers about whether the technology will have broader appeal given that many customers are still reluctant to make the switch. Battery-powered models have been piling up on car lots, dealers say, as EV sales growth has slowed in the U.S. this year. Car companies have been offering a combination of discounts and lower interest-rate deals in an effort to juice demand. But it hasn’t been enough, because buyer reticence extends beyond the price tag, dealers say. https://lnkd.in/eQZJziDM

The number: 22%. That's the decrease in the average price paid for a battery-powered vehicle between last September and the same month this year, from $65,000 to $50,683, according to the industry services firm Cox Automotive. The auto industry’s push to boost sales of electric vehicles is running into a cold, hard reality: Buyers’ interest in these models is proving shallower than expected. While EV sales continue to grow—rising 51% this year through September—the rate has slowed from a year earlier and unsold inventory is starting to pile up for some brands. Some car companies, such as Ford Motor and Toyota Motor, are tempering their expectations for EVs and shifting more resources into hybrids, which have been drawing consumers at a faster clip. The first wave of buyers willing to pay a premium for a battery-powered car has already made the purchase, dealers and executives say, and automakers are now dealing with a more hesitant group, just as a barrage of new EV models are expected to hit dealerships in the coming years. “The curve isn’t accelerating as quickly as I think a lot of people expected,” said John Lawler, Ford Motor’s chief financial officer at a conference in September, on the EV adoption rate. “We’re seeing it flatten a bit.” The abrupt slowdown in EV sales is a contrast to a year ago, when carmakers found themselves caught off guard by long waiting lists for battery-powered cars and trucks. It is also a troublesome sign for the car manufacturers plowing billions of dollars into building factories and battery plants to support what they hope will be a strong pickup in demand for plug-in models. In recent years, the auto industry’s pivot has accelerated, prodded by Tesla’s meteoric rise and tougher regulations globally on tailpipe pollutants, including outright bans on gas-engine cars in the coming years. The Biden administration has made EVs a centerpiece of its industrial policy, and the United Auto Workers union is on strike at the Detroit car companies, in part because it is worried about future job security as engine and transmission plants disappear. Still, many consumers are reluctant to make the switch, deterred by high sticker prices and the inconvenience of driving a vehicle that has a limited range and needs regular recharging. “I just wasn’t ready to get an electric yet, because of range anxiety,” said Robert DuWors, who was recently in the market and had considered a battery-powered car. He instead bought a plug-in hybrid, noting that it gets 40 to 50 miles on a single battery charge, more than he drives in an average day. The share of the retail market held by EVs has leveled out at around 9% for the past several months, according to data analytics firm J.D. Power, raising broader questions about whether the industry is confronting a short-term blip or a more protracted challenge. 

Ford issues 'call to action' for EV suppliers: Ford's memo offers a look into how heavily the automaker is leaning on suppliers for help with EVs. It comes even as many of those suppliers grapple with dramatically lower volumes and production delays. #cars #auto #car