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Ford Ends Electric Vehicle Program, Citing ‘Less Demand’ Than Expected – One America News Network

Ford Ends Electric Vehicle Program, Citing ‘Less Demand’ Than Expected – One America News Network

Ford Mustang Mach E electric vehicles will go on sale at a dealership on June 5, 2024 in Chicago, Illinois. Ford Motor Company reported an 11.2% increase in sales last month compared to last May, driven by strong sales growth in full electric and hybrid models. (Photo: Scott Olson/Getty Images)

OAN’s Brooke Mallory
11:49 – Thursday, June 13, 2024

Ford Motor is discontinuing a “controversial” electric vehicle dealership initiative that initially required store owners to invest up to $1 million in cash to sell electric vehicles.

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Ford CEO Jim Farley launched the “Electric Vehicle Certificate” program in September 2022 amid strong industry enthusiasm for fully electric cars and trucks, tight vehicle supply and high early vehicle demand.

However, things did not turn out as they expected.

Sales of electric vehicles from Ford and other automakers are growing, but slower than expected. As a result, “this has led to automakers delaying or canceling future electric vehicles and investments.” NBC News reported.

“The world has changed,” said Marin Gjaja, chief operating officer of Ford’s Model E electric vehicle sector. “Growth has slowed.”

The Model-e dealership program, which employed nearly half of Ford’s 2,800 U.S. dealers, is ending in light of “the growing market and dealer discussions,” according to Gjaja.

Dealer lawsuits have also been filed against the corporation in connection with the scheme.

“We think it will help us increase sales,” Gjaja added.

The amount dealers must spend on training, charging and other costs related to electric vehicles will reportedly be less than under the previous program, which required an investment of between $500,000 and $1.2 million.

However, according to Gjaja, these initial estimates were “exaggerated.” He went on to say that the dealers who participated in the entire operation invested an average of almost $600,000.

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