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After selling Ford vehicles for nearly four decades, Rob Lombard has until Friday to decide whether his Barkhamsted dealership will follow the popular American auto-maker into the frontier of the electric vehicle market.
Lombard is no stranger to EVs, having sold Ford’s first all-electric model in 2011, and even installed two charging stations on his lot.
Now, however, the company has given Lombard and its other franchise dealers nationwide an option to invest hundreds of thousands of dollars in new, high-powered chargers — and agree to cut any haggling in favor of fixed prices on EVs — in order to continue selling Ford’s growing electric lineup, including the highly anticipated F-150 Lighting. Dealers who refuse to meet those requirements will revert to selling only traditional, gas-powered models.
“As a dealer, I bleed blue, everything I do is with the Ford Motor Company,” Lombard said. “This particular program, again, threw us a curveball at the dealers and now it’s up to us to think and make a decision for ourselves.”
The ultimatum stems from Ford’s decision earlier this year to split into two separate businesses: one focused on internal combustion engines, and the other, the Model e program, focused solely on electric vehicles. In September, the company announced that starting in 2024 it will require any dealer selling electric vehicles through the Model e program to adopt a specific set of requirements and investment in charging infrastructure, according to Inside EVs, a website covering the electric market.
At the most basic level, Ford is asking dealers to invest about $500,000 for at least one new charging station, though those dealers are limited in how many EVs they can sell. A full commitment, with no sales cap, would require an investment of up to $1.2 million.
Ford initially gave dealerships until the end of October to decide whether they would commit to the program or end EV sales, before relenting and giving dealers five additional weeks to decide on December 2.
Lincoln, Ford’s luxury brand, has given its dealers until December 15 to decide on a similar set of promises. Dealers who opt out of the EV market will be allowed to reconsider that decision starting in 2026.
Across Connecticut’s 28 Ford dealerships, there are mixed feelings about what to do with Ford’s ultimatum, said Jeff Aiosa, a lobbyist for the Connecticut Automotive Retailers Association, which represents franchisees.
While a $1.2 million investment may prove worthwhile for a dealer that sells thousands of cars each year, Aiosa said the same requirements may be out of reach for smaller dealers that sell closer to 100 vehicles a year.
“The consensus is that there are probably some who feel they need to, because they don’t want to get on the wrong side of their manufacturer,” Aiosa said. “There are others who are deeply concerned about inefficiency and don’t see the economics in their favor.”
Ford did not respond to requests for comment Wednesday.
At a press conference Wednesday, a series of state lawmakers blasted Ford’s deadline as “arbitrary” and “aggressive,” and called on the auto-maker to change course by working with its franchisees to ensure that they can cover the costs of continuing to sell and service EVs.
Others have compared the company’s actions to those of its upstart rivals in the electric market, such as Tesla and Rivian, which have completely bypassed the franchise model to sell directly to customers — though not in Connecticut, where such remains illegal. direct selling.
“Ford is Ford because of our dealers, because our dealers have worked with them and sold their cars and been there as right-hand people for service for years and years,” said state Sen. Heather Somers, R-Groton. “Our dealers have grown and helped Ford become who they are today.”
Ford’s ultimatum could also be a violation of Connecticut’s franchise law, as well as other state and federal laws, warned US Sen. Richard Blumenthal, D-Conn., a former attorney general said Wednesday that he is calling on the Federal Trade Commission to investigate Ford’s actions.
In a statement Wednesday, Connecticut’s current attorney general, William Tong, urged Ford to “listen to the real concerns raised by their dealers,” about the cost of infrastructure investments associated with the Model e program.
A spokesman for Tong said the attorney general had not contacted his counterparts in other states on Wednesday to discuss possible legal action should Ford refuse to change course.
Lombard told CT Insider on Wednesday that he hasn’t decided whether to commit to EV sales, adding that he still hopes Ford will come to the table to work with its dealers in finding a better solution.
Among his concerns, Lombard said, is whether supply chain issues will hinder Ford’s ability to produce enough electric cars for dealers to recoup their investments. He added that he still doesn’t have clarity on whether his current charging stations will meet the company’s demands and help lower some of his costs.
Meanwhile, Aiosa said other dealers in the state have taken notice of Ford’s action, which he said will have broader implications as other legacy automakers make the transition to the electric market.
“This is obviously something that not only concerns Ford dealers, but other dealers with other line-makes,” Aiosa said. “If Ford can do it, what’s to stop Chevrolet or Stellantis or Chrysler or other line-makes from doing the same thing?”
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