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  • Ford tells dealers to pause EV investments, cars on the road are getting older, new EV ownership trends

Ford tells dealers to pause EV investments, cars on the road are getting older, new EV ownership trends

Hey everyone. Check this out — over 1.7 million people are employed by the auto industry, but I want to see that number grow even bigger.

That’s why my job board is constantly updated with great opportunities both inside and outside the dealership. Find your next gig today. Or if you’re an employer looking for talent, post an open role here.

But first, let’s take a look at today’s top stories.

— CDG

1. Ford cautions dealers to pump the brakes on EV investments

Top line: Ford is telling its dealers to pause EV investments while the automaker finishes a review of its Model e requirements in June.

Catch up fast: In 2022, Ford said dealers had to become certified to sell EVs. They had to decide if they would invest $500,000 to $1.2 million to install the necessary charging infrastructure by June 30, 2024. Half of Ford dealers have opted in.

Ford EV charging stations via Covert Ford in Austin

  • Ford eased its requirements last November. Instead of installing five level 2 chargers, dealers now have to install two. To be "certified elite," the requirement fell to three instead of five chargers. EV training standards were also loosened.

  • The decision to halt investments altogether comes after Ford executives completed a "Dealer Engagement Tour." On this tour, Ford executives met with more than 1,000 dealers over 11 meetings across the country in an effort to regain dealer trust.

Why it matters: Despite selling a record number of EVs so far in 2024, the slowdown in overall EV sales growth has hit Ford hard. 

  • The automaker said it has delayed $12 billion in EV-related spending. The delay includes the production of a new electric SUV and a pickup truck as it pivots to a hybrid lineup by 2030.

  • Its Model e business division expects to lose up to $5.5 billion in 2024.

  • In the first quarter of this year, Model e lost $1.3 billion on the 10,000 EVs it sold — $132,000 per car.

Big picture: "We don't want [dealers] to make any decisions between now and the middle of June when you can maybe have a more informed decision-making process based off what we work out with council in the next few weeks," Andrew Frick, president of Ford Blue, told Automotive News. "There's a lot that we'll be reviewing."

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2. Study: most EV owners ditch gas for life, dealers help drive sales

What’s happening: The real-world experiences of EV owners and dealers are at odds with many of the assumptions people make about the EV market.

At a glance, CDK’s EV Ownership Lifestyle study challenges many stereotypes, not only about what it’s like to drive an EV long-term but also about how dealers are driving the market forward.

Buy once, buy for life: Today's EV owners are more than tech enthusiasts testing out a new toy. 

  • The vast majority (73%) of consumers who purchase an EV are so happy with their decision that they ditch gas-powered alternatives for life. That number holds steady for both Tesla and non-Tesla buyers.

Buyers convince other buyers: EV owners are more than consumers — they are the advocates driving adoption rates higher. 

  • 81% of participants said they had already recommended an EV to friends and family. Word-of-mouth is critical to the long-term growth of a developing segment.

The dealer perspective: Dealers have reservations over EVs. But, they are one of the most influential forces driving electrification.

  • Almost all EV owners surveyed completed their purchase on-site, both when shopping at franchised dealerships (95%) and at Tesla’s first-party storefronts (96%).

  • The majority of those buyers conducted the entire process offline (57% of Tesla owners and 66% of non-Tesla owners).

  • More than half (54%) of non-Tesla EV owners bought an EV because dealership staff recommended one. This counters rumors that pro-ICE sales reps are discouraging shoppers from EV options.

Key quote: “Perhaps the most important part of the purchase process for EVs is one that simply can’t be done online. Nearly every EV buyer in our survey (98%) took a test drive. And while roughly four out of five non-EV car buyers opted to take their prospective vehicle for a spin, testdriving an EV had a profound impact on the buyers. 

Multiple respondents said it was on the test drive where they ‘fell in love’ with the EV they chose. In some cases, test driving an EV swayed a buyer from possibly buying a gas car.”

Bottom line: This data suggests there’s much more to the EV market than the raw sales numbers. Dealership business models and sales training are actively promoting EVs, countering the myth that auto retailing is ‘anti-EV.’

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3. Cars on the road creep up in age

Top line: The average age of vehicles on U.S. roads continues to get older and has reached a record high of 12.6 years, according to a new analysis

Driving the news: The average age increased by two months compared to 2023 and five months against 2022. Yet, these increases are showing signs of slowing as registrations tick up.

  • Total vehicles in the U.S. surged to 286 million, up 2 million from the year earlier.

  • Vehicles under the age of six represented less that 90 million vehicles on the road, about 30% share.

  • In 2019, there were about 8 million more vehicles under the age of six in operation, representing a 35% share of cars on the road. 

  • The average age of EVs in operation is 3.5 and holding steady due to new registrations. In 2023, registrations surpassed one million units for the first time and increased about 52% compared with 2022.

  • EVs on the road also continued to increase. As of January, 3.2 million were in operation.

The reasons for aging? Higher quality vehicles, rising new vehicle prices and interest rates, COVID supply chain shortages and a slowdown in EV purchases.

Why it matters: As vehicles age, service and repair business opportunities grow. More vehicles are in the prime range for aftermarket service (6 to 14+ years old), said Todd Campau, aftermarket practice lead at S&P Global Mobility. More than 110 million vehicles are currently in that “sweet spot,” and volume is expected to continue growing through 2028.

Have a tip for our editorial team? Send us your scoop at [email protected].

  • A new ad for Sen. Sherrod Brown tells Ohioans that they shouldn't trust Republican challenger Bernie Moreno because he used to be a car dealer.

  • Airbnb and ChargePoint have partnered to help homestay hosts install EV chargers in the US, as demand for these devices grows.

  • Nissan pauses EV sedan development in the U.S. as it expands its lineup.

  • Used Tesla Model Y sales are surging while prices keep falling.

  • A new Cox Automotive study shows that dealers and automakers can help car shoppers feel more at ease with EV ownership with greater levels of education.

We’ve got tons of great jobs hitting the CDG Job Board right now. Here are some standouts for anyone looking for their next move.

  • Are you an expert in dealership financials? HGreg is seeking a Senior Controller near Palmetto Bay, FL.

  • Have experience working with the OEMs? Tech company Fullpath is looking for a skilled OEM Operations Manager.

  • Is sales more your game? OPENLANE is hiring 10 Market Sales Managers all over the country.

Looking to hire? Add your roles today—it’s 100% free.

Thanks for reading everyone. I’ll be back with more industry stories tomorrow morning.

— CDG

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