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Ford execs skip vital US dealer Q&A session

Disgruntled dealers say Ford execs failed to take questions relating to EV and quality issues

8 Feb 2024

FORD Motor Company’s rocky relationship with its North American dealers has come to a head at this week’s National Automobile Dealers Association (NADA) meeting in Las Vegas.

 

According to a report published by Automotive News, Ford president and CEO Jim Farley asked dealers for “open and honest” feedback before setting out on a two-week tour of smaller US dealerships where he and chief dealer engagement officer, Elena Ford, vowed to address any issues raised.

 

At the NADA conference, dealers reportedly left feeling disgruntled after executives offered “few specifics on hot-button issues”, while also failing to take questions from dealers in a break from company standard practice.

 

The report says that dealers had hoped to ask Ford executives about its EV certification program and several recall concerns but were surprised when they were not offered the opportunity.

 

“It is very disappointing when you have a town hall setting and you don’t get to have your voice heard,” one of the dealers told Automotive News.

 

The absence of the Q&A session was notable as the Ford national dealer council chairman David Wilson had said previously that such an interaction was planned for this year’s NADA conference.

 

“We are going to have a dealer panel at the (NADA) meeting, and there is going to be more Q&A from the dealer body – we are going to have more of a two-way conversation,” he said prior to the show.

 

Both Mr Wilson and a Ford Motor Company declined to discuss the matter with Automotive News.

 

According to attendees, the 75-minute gathering of dealers, dealer council leadership and subcommittee chairpersons included Elena Ford and Ford US director of sales Rob Kaffl.

 

The speakers discussed the need to improve quality, to help with vehicle affordability, and to improve dealer communication.

 

During Ford’s U300 meeting the day prior – a separate event held for dealers who sell fewer than 300 vehicles annually – executives acknowledged dealer “pain points” and said it would adapt its transition to EVs in response to concerns raised.

 

“I know you are not feeling good right now for several reasons, and we are working to change that,” said Ms Ford.

 

In the same meeting, Mr Farley said EVs are risky for Ford and its retail network, and that he had anticipated the company would not make the transition easily.

 

According to attendees, Mr Farley promised to continue adjusting Ford’s EV certification program and said it would stick with its retail sales model, rather than a direct-to-consumer model like Tesla uses.

 

The news comes as a recent survey, carried out by Kerrigan Advisors, showed some 650 US dealers said they had “no trust in Ford Motor Company”.

 

Reporting on the findings of the survey, Automotive News said in November that 48 per cent of dealers said they have no trust in the company and that there is an expectation that franchise profitability will decline due to Ford’s electric vehicle and future retailing strategy.

 

Ford said in a statement that its 3000 dealers are “important strategic partners” and that it is “always listening and making adjustments … to improve franchise value”.

 

Kerrigan Advisors least trusted US brands*:

 

 

2023

Ford

48%

Nissan

43%

Lincoln

40%

Chrysler-Dodge-Jeep-Ram

39%

Infiniti

37%

 

Kerrigan Advisors most trusted US brands*:

 

Toyota

72%

Lexus

56%

Subaru

55%

Honda

36%

Porsche

31%

 

*Based on 2023 results of Kerrigan Advisors annual dealer survey.

 


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