State’s Ford dealers given an ultimatum on sales of EVs
After selling Ford cars for nearly four decades, Rob Lombard has until Friday to decide whether his Barkhamsted dealership will follow the famed American automaker onto the frontier of the electric vehicle market.
Lombard is no stranger to EVs, having sold Ford’s first all-electric model dating to 2011, and installing two charging stations on his lot.
Now, however, the company has given Lombard and its other franchise dealers around the country a choice of investing hundreds of thousands of dollars in new, high-powered chargers — and agreeing to ditch any haggling in favor of fixed prices on EVs — to continue selling Ford’s growing electric lineup, including the much-anticipated F-150 Lightning. Dealers who decline 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 just, again, threw us dealers a curveball and now it’s up to us to mull over 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, Model e program, dedicated solely to electric vehicles. In September, the company announced that starting in 2024 it will require any dealers selling electric vehicles through the Model e program adopt a specific set of requirements and investments in charging infrastructure, according to Inside EVs, a website covering the electric market.
At the most basic level, Ford is requiring dealers to invest about $500,000 for at least one new charging station, though those dealers will be limited in how many EVs they can sell. A full commitment, with no limits on sales, will 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 forgo EV sales, before relenting and giving dealers five additional weeks to decide by Friday.
Lincoln, Ford’s luxury brand, gave its dealers until Dec. 15 to decide on a similar set of commitments. Dealers who opt out of the EV market will be allowed to reconsider that decision beginning 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 every year, Aiosa said that those same requirements may simply be out of reach for smaller dealers that sell closer to 100 vehicles in a year.
“The consensus is that there’s probably some that feel like they have to, because they don’t want to be on the wrong side of their manufacturer,” Aiosa said. “There are others that have extreme concern about the investment and not seeing the economics in their favor.”
Ford did not respond to requests for comment on Wednesday.
In a news conference Wednesday, a series of state lawmakers chided Ford’s deadline as “arbitrary” and “aggressive,” and called on the automaker to change course by working with its franchises to ensure they can can bear the costs to continue selling and servicing EVs.
Others compared the company’s actions to its upstart rivals in the electric market, such as Tesla and Rivian, which have bypassed the franchise model entirely to sell directly to customers — albeit not in Connecticut, where direct sales remain illegal.
“Ford is Ford because of our dealers, because our dealers have worked with them and sold their cars and been there as the right-hand person 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 may constitute a violation of Connecticut’s franchise law, as well as other state and federal statutes, warned U.S. Sen. Richard Blumenthal, D-Conn., a former attorney general who said Wednesday he was calling on the Federal Trade Commission to investigate Ford’s actions.
In a statement Wednesday, the current attorney general of Connecticut, William Tong, urged Ford to “listen to the real concerns raised by their dealers,” about the cost of the infrastructure investments associated with the Model e program.
A spokeswoman for Tong said the attorney general had not reached out to his counterparts in other states Wednesday to discuss possible legal action should Ford refuse to change course.
Lombard told CT Insider Wednesday that he has not made up his mind on whether to commit to EV sales, adding that he still hopes Ford will come to the table to work with its dealers on finding a better solution.
Among his concerns, Lombard said, is whether supply chain issues will hamper Ford’s ability to make enough electric cars for dealers to recoup their investments. He added that he still has not gotten clarity as to whether his existing charging stations will satisfy the company’s demands and help lower some of his costs.
Meanwhile, Aiosa said that other dealers in the state have taken notice of Ford’s action, which he said will have broader implications as other legacy automakers switch to the electric market.
“It’s clearly something that concerns not just Ford dealers, but other dealers with other line-makes,” Aiosa said. “If Ford can do it, then what would prohibit Chevrolet or Stellantis or Chrysler or other linemakes to do the same thing?”