Ford's EV Plan Is Too Little

Cars and Drivers

Published: October 1, 2024 6:40 am

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Ford Motor Co. (NYSE: F) is offering its new EV owners a home charging station.
Is that what its EV customers really want?
Also: Dividend legends to hold forever.

Ford Motor Co.’s (NYSE: F) position in U.S. electric vehicle (EV) sales ranks third behind Hyundai/Kia and Tesla Inc. (NASDAQ: TSLA). General Motors Co. (NYSE: GM) is gaining and will challenge Ford’s place in the pecking order. Ford’s new sales tactics include offering free home charger installations and special services that match some EV owners’ needs. The effect on potential customers is likely less than modest.

As part of the promise, Ford will give its new EV owners a new charging station called the Charge Station Pro. The charger’s retail price is $1,310. According to CNBC, the offer is only good for the fourth quarter, although it might be extended. It will also cover the cost of the installation in partnership with Qmerit. Additionally, the company will offer a “247 Live Support” service. This includes roadside assistance, which is hardly unique.

Marin Gjaja, chief operating officer for Ford’s Model e EV business, told CNBC, “We’re trying to get people off the fence.” It is a fence, however, that many people do not want to get off of. Ford’s gasoline-powered sales are extremely healthy. Its hybrid sales are robust, but its EV sales are less than modest. Its EVs are expensive. The market is crowded, and Tesla still has about half of the EV market share in the United States.

What Do Ford Customers Want?

In an EV market that experts believe will not grow rapidly until EV prices drop to $25,000, the mid-level Ford Mach-E has a manufacturer’s suggested retail price of $43,995. This does not include destination fees and government charges. All-wheel drive and extended-range batteries add thousands of dollars to that price. Ford’s EV full-sized pickup, the F-150 Lightning, has a base price of $62,995. An extended-range battery pushes that up by several thousand dollars.

Ford does not understand that people want more affordable EVs, not free charging equipment, which saves just over $1,000. People who have bought its EVs before the new offer may not be entirely happy that they did not get it.

Ford’s deal also does not address the spotty number of charging stations around the country, where there are lines and charging equipment sometimes do not work. Batteries may not fully charge in cold weather, and tires can also get less distance on EVs than on gasoline-powered cars.

The company sold 182,985 vehicles in the United States between January and August. Of these, 8,944 were EVs. Ford has slowed its efforts to build EVs and has moved toward promoting hybrids, which are more popular with buyers. Its new free offers are unlikely to move its EV needle by much.

Three Warning Signs Ford Is in Trouble

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