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It's 2023 the competition is losing 40% on every EV they sell, and their EVs are heavier, slower, have less range, and fewer features, and cost tens of thousands more to make. Meanwhile, Tesla is making almost 30% per vehicle, their vehicles are best in class and well-loved, and yet people still think that #TheCompetitionIsComing
That comment would carry a lot more weight if the competition couldn't sell their cars. But they are, and in many cases, they can't keep up with demand.
Is Tesla in a better position after a decade of EV production knowhow - absolutely. But to insinuate that the competition is not there is insane.
PS - there are quite a few EVs that are faster than their Tesla counterpart.
During Ford's Capital Markets Day presentation, company CEO Jim Farley announced the automaker was going to transition to set, non-negotiated prices for its electric vehicles.
"We're matching these vehicles with a modern and simple customer experience that starts with one major breakthrough, non-negotiable price. Our dealers can be a competitive advantage as we work together to lower distribution costs. We're going to reduce physical inventories dramatically in Model e, and deploy a new marketing model that focuses on loyalty and customer communication and building a community rather than spending billions on TV advertising and broadcast media," Farley said.
Doug Field, Ford's chief advanced product development and technology officer, offered some more details about the new pricing strategy. It will take effect in January 2024 for the automaker's EVs.
"Model E customers will have flexible purchase options, online, in the store, with transparent pricing that they don't have to haggle over, and remote vehicle delivery, and later pick up as well. These better experiences make customers more likely to build a relationship and choose the same dealer again," Field said.
Ford will also establish new retail replenishment centers. These sites will hold a couple of weeks of vehicle inventory and will be able to deliver a model to a customer in less than 10 days.
The company made the non-negotiable pricing a pillar of creating its new Model e dealer network. Showrooms have to post set prices for EVs on the automaker's website, and customers can complete the purchase online.
However, this does not mean Ford is adopting a direct sales model like what Tesla or Rivian use. Customers are still buying from a dealer but don't have to enter a showroom if they don't want to.
In December 2022, Farley said that 1,920 of the automaker's 2,968 dealers in the United States agreed to become a Model-e-certified location for selling the brand's EVs. These showrooms have to put employees through electric-vehicle-specific training, install chargers, and offer complimentary vehicle pickup and dropoff.
Motor1.com reached out to InsideEVs Senior Editor Tom Moloughney for his analysis of Ford's pricing plan:
"Ford's approach is a clever workaround to dealer franchise laws to offer what many consumers today want; a non-negotiable set price with the option of home delivery. Tesla has proven this formula works and is often preferred over the existing car buying experience that can consist of many hours at the dealership to negotiate a deal before it gets approved by a floor manager, only to get turned over to the finance department where you're offered everything from undercoating, window etching and wheel insurance, to an extended warranty.
"Model e's approach will be to allow customers that want to eliminate all that to do so with online pricing that the dealers set individually, while still offering the dealership experience that some buyers prefer."
I don't understand. So dealerships set the prices individually....that means the prices could be different at different dealerships and still non negotiable. The highest priced dealership will eventually lose out. LOL
I don't understand. So dealerships set the prices individually....that means the prices could be different at different dealerships and still non negotiable. The highest priced dealership will eventually lose out. LOL
#thatsthepoint
Because they are lowering inventory and pulling from common stock, not individual, it makes sense to set a non negotiable price that people will want to pay.
Ford's second-quarter sales results were presented last week as a triumph, with the tagline "Ford EV sales gain momentum." Ford's data shows that EV sales have shrunk in the quarter by 2.8 percent. In the meantime, industry insiders reveal that dealerships have lots filled with Mustang Mach-Es and don't accept new allocations, forcing the Blue Oval to get creative.
Corporate communication is something to marvel at, considering how half-truths are used to paint a rosy picture of what is, essentially, a disaster. They don't call people in the industry "spin doctors" for nothing. Ford's second-quarter results are a great example of what can be done when you put your mind to it. Reading the press release, you will understand that Ford did brilliantly in ramping up EV production, sales of electric vehicles are growing, and all the charts are through the roof. Going deeper into Ford's own data shows that things are not looking good, and EV sales are actually down for the quarter.
"Ford EV sales gain momentum," reads the tagline, as Ford explains that "the F-150 Lightning and Mustang Mach-E achieved higher sales through stronger inventory." The first warning sign comes when Andrew Frick, Ford's VP of sales, announces that Mach-E sales climbed 110 percent in June. What happened to the second quarter, then? The same stands for the overall EV sales, as Frick tells us they were up 35.5 percent in June.
Yet, despite the good news, the table at the bottom of the release shows that sales of electric vehicles actually dipped by 2.8 percent in the second quarter compared to 2022. The Q2 result is even worse, considering that the F-150 Lightning only started deliveries at the end of May 2022. This makes the 118.7% YoY increase in the second quarter lose significance. It tells us that Ford sold twice as much in the second quarter this year as in June 2022, which is not that much after all. The disappointing result is baffling, considering that it comes at a time when the EV market is booming thanks to the IRA tax credits.
Another piece of information questions even the Mustang Mach-E result. Industry insiders claim that dealership lots are filled with Mustang Mach-E to the point that dealers refuse new allocations. That's when Ford started filling overflow lots with Mustang Mach-Es, as revealed by pictures taken by people in Southern California. It also found a creative way to get rid of the cars, as shown in a Ford press release about a "flexible lease pilot" with Uber. Not surprisingly, the release is dated June 1, just in time to help Ford achieve that 110% Mach-E increase in June.
The Ford Drive program allowed Uber drivers to lease a Mustang Mach-E for "customized time periods." That means between one- and four-month increments, depending on location. The program launched in San Diego, San Francisco, and Los Angeles, with the latter being the first to get Ford vehicles. This helped Ford report a Mustang Mach-E sales increase in June, although it might not get away with it the next quarter.
The truth is that the situation is not limited to Ford but possibly all legacy carmakers. A recent Cox Automotive survey showed that EV inventory climbed to 92 days in the second quarter, up from 36 days a year earlier. This indicates that although production increased, sales are actually down for everyone except Tesla. Volkswagen blamed this on "strong customer reluctance" and announced slashing output at its main EV factory in Germany.
The issue with all of this are the fucking dealers and that's what Ford needs to figure out. No one is going to buy a MachE or F150 EV for $20k over MSRP when you can buy a Tesla or Rivian for less.
I have a coworker who looked all over the country for a F150 Lightning in a XLT spec at sticker and was prepared to buy and ship it here from anywhere in the lower 48. He could not find a single dealership willing to sell at MSRP. Ended up buying an ID4 at sticker.
Ford just revealed the 2024 F-150, and while it’s not the most extensive mid-cycle refresh that we’ve ever seen, the new F-150 now includes the 2.7-liter turbocharged V6 as standard instead of the old 3.3-liter naturally aspirated V6. Plus there’s a fancy new tailgate with a little door built into it that Ford says should be more convenient for owners, an optional modular grille and new shocks for the Raptor. But if you look closely, you may also notice that the Ford logo on the front is ever so slightly different.
Ford didn’t officially announce the update to the Blue Oval, but Ford’s senior designer for colors and materials, Rob Brancheau did confirm to Car and Driver that the logo has been changed. That said, it’s not a drastic update, and we wouldn’t be surprised if hardly anyone notices without having it pointed out to them first. As you can see below, the old logo spelled out “Ford” in silver and included a chrome surround.
In contrast, the new logo spells out “Ford” in white and drops the chrome in favor of a simple white oval. The text is also slightly larger, and it appears the blue used in the famous Blue Oval is flatter than before. Presumably, the new design will eventually make its way onto all new Fords, but it’s not clear at this time if it will be a slow process and only change when Ford redesigns or refreshes a vehicle or if there will be an across-the-board rollout.
Either way, there you go. That’s the new Blue Oval. Basically the same as before but just different enough. We’re sure all your friends and family can’t wait to hear about it.
02-04-2023, 09:10 PM
