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Agreed. Most external media recaps of this issue miss that it was only related to Battery Electric Vehicles (BEVs), not Internal Combustion Engine (ICE) vehicles.It looks like Ford is trying to push down ADM on just electric vehicles. I have only seen Ford get involved on electric models. When it is not electric, then "Dealerships are separate entities and we have no control over . . ."
I have yet to hear of any dealership being forced by Ford to drop ADM on an ICE vehicle.
I was listening to Ford’s quarterly conference call when the issue was first raised, and I posted about it on another thread.
The transcript was published a few days later and quotes the entire conversation between Brian Johnson, senior equity analyst at Barclays following the U.S. Autos and Auto Parts sector, and Jim Farley, Ford’s CEO.Don’t get too excited unless you’re an EV customer. Wait for the conference call transcript for context.
This issue also influenced Farley’s decision to reorganize the corporation into different operating units (e.g., Ford Blue, Ford Model e).
https://shareholder.ford.com/investors/financials-and-filings/default.aspx
https://s23.q4cdn.com/799033206/files/doc_financials/2021/q4/4Q-2021-Earnings-Transcript.pdf
TL;DR — The Internal Combustion Engine (ICE) and Battery Electric Vehicle (BEV) markets are different and will be treated differently. The crackdown will be on the BEV side of the market, because Ford’s primary competitor there (i.e., Tesla) offers fixed pricing and has no franchise dealerships.
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