Ford gave its dealerships one scary message that’s bad news for electric vehicles

May 28, 2024

The electric vehicle industry is in shambles from plummeting sales.

Now the fallout is sending shockwaves through the auto industry. 

And Ford gave its dealers one scary message that’s bad news for electric vehicles.

Electric vehicles have been a costly nightmare for Ford

Ford was one of the willing partners of President Joe Biden’s plans to electrify the auto industry.

The automaker set ambitious goals for its electric vehicle division and invested heavily in it.

Biden showed up at a Ford manufacturing plant in 2021 to test drive the Ford F-150 Lightning electric truck, one of the flagship vehicles of its electric lineup.

“The future of the auto industry is electric,” Biden said at the time. “There’s no turning back.”

Ford manager of government and public policy communications Melissa Miller celebrated the President’s visit.

“We’re honored to host President Biden at Ford Motor Company and excited to preview for him the new F-150 Lightning and the exciting technologies that made it possible,” Miller said. “Electrifying America’s best-selling vehicle is a milestone in our country’s transition to cleaner transportation.”

Ford thought that it had discovered the secret to success with electric vehicles.

Earlier electric vehicles were mocked for being small econoboxes with low speeds and short ranges.

But Ford began making electric versions of popular models like the F-150 and the Mustang.

And the automaker made a big bet that Biden was right and the future was electric.

The Biden administration gave Ford nearly $10 billion in taxpayer-funded subsidies to build three battery plants to power its electric fleet.

Major investments were made by the automaker to ramp up the production of electric vehicles. 

Ford Model e division, its electric division, is in shambles as demand for electric vehicles crater.

The division lost nearly $5 billion last year and almost wiped out the profit made by selling gasoline-powered vehicles.

And for 2024, Ford is losing a staggering $133,000 on every electric vehicle sold this year.

Those kinds of losses are completely unsustainable even with the Biden administration trying to prop the industry up.

Ford tells its dealership to hold back on plans for investing in electric vehicles

Ford’s ambitious electric vehicle agenda meant that its nationwide network of independently owned dealerships had to follow suit.

The automaker asked its dealers to go “on an epic journey of sustainable expansion” to join its “revolutionary” electric vehicle transformation. 

Dealers had to make investments in charging stations and other equipment to be certified to sell electric vehicles by Ford.

Now Ford is telling its dealers to stop any investments in selling and repairing electric vehicles after a nationwide tour to meet with them.

“We don’t want them to make any decisions between now and the middle of June when you can maybe have a more informed decision-making process based off what we work out with council in the next few weeks,” Ford executive Andrew Frick told Automotive News. “There’s a lot that we’ll be reviewing.”

Ford dealers were asked to invest as much as $1.2 million to prepare to sell electric vehicles.

Now dealers are watching electric vehicles pile up on their lots after they spent big to be able to sell them.

*Read All About It Poll*

Latest Posts: