The company is cutting dealer training costs by half and reducing the number of chargers its retailers must install. It is also delaying the deadline to install chargers, citing supply chain shortages.
Ford Motor Co. is again altering its electric vehicle certification program for dealers, cutting training costs by half and reducing the number of chargers that retailers must install.
The moves follow a victory by Ford dealers in Illinois, where the state motor vehicle board said the automaker broke the law by requiring dealers to invest heavily if they want to sell EVs.
In a statement, Ford said it was altering the program “as we continue to adapt our overall EV strategy to the market and listen to dealer feedback.”
The biggest changes involve EV chargers.
The company said “Certified Elite” dealers — the more expensive of the program’s two tiers, primarily for those in larger markets — have to install three Level 2 chargers instead of the five it previously was mandating. The company also is removing a requirement to add a Level 3 charger by 2026.
Dealers on the lower-priced “Certified” tier are now required to install two Level 2 chargers instead of five.
For both tiers, the deadline to have chargers in place has been pushed back six months to June 30, 2024. A spokesperson said the company moved the deadline because of “charger supply chain and infrastructure delays.”
Ford also is cutting the cost of dealer training by about half, or up to $20,000, for the 2024 calendar year.
Charging requirements were among the areas of dispute in the Illinois case, where 26 dealers argued the program violated state franchise laws. The dealers also said more expensive Level 3 chargers were unnecessary.
“No witness testified that any dealer has yet to have a problem charging vehicles nor why, in the future, a Level 2 charger will be insufficient for maintaining cars for test drives,” a hearing officer wrote in a preliminary decision upheld by the motor vehicle board. “In fact, many dealers testified that they have never had a problem charging vehicles for delivery to customers or for taking test drives.”
The board ultimately said Ford wrongly implemented changes to allocation and distribution models, among other violations of state law.
In a statement, Ford said it would appeal the decision.
“Ford stands by its voluntary Model e EV program,” a company spokesperson said. “It is designed to make sure that Ford and its dealers provide Illinois Ford EV customers with a segment-leading experience throughout their purchase, service and ownership journey.”
The Illinois dispute is among battles nationwide over the EV program. Ford has had mixed results fighting the legal challenges.
A New York judge in September blocked the company from imposing facility and business requirements on five dealerships to sell EVs until a lawsuit challenging the brands’ dealer agreement changes is resolved. But Ford in July got a favorable ruling from a court in South Dakota, where a judge determined the program does not violate state franchise law.
Beyond the legal actions, the program has faced opposition from a majority of state dealer associations since it was unveiled in September 2022. Still, about 60 percent of Ford and Lincoln dealers initially chose to participate, and the company has shown a willingness to tweak certain unpopular aspects.
In January, Ford announced changes that included scaling back the amount of time a dealer would have to offer public charging each day and removing a cap that limited dealers from the lower-priced tier to selling no more than 25 EVs per year.
Lincoln this year also modified its version of the program to give dealers more flexibility.
After the changes, Ford allowed dealers to opt out of the program or switch tiers. The company said 53 dealers left the most expensive tier, while 24 dealers joined the lower tier. At the time, Ford said total enrollment fell 1.5 percent to 1,891 of its nearly 3,000 U.S. dealers.
The company on Monday said enrollment has since fallen to about 1,550 dealers, or about 53 percent of the total network. Ford says this would put 86 percent of the population within 20 miles of a Ford dealership capable of selling and servicing a Ford EV.
