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Ford urges its managers to buy more EVs with new leasing policy
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Ford urges its managers to buy more EVs with new leasing policy
Jul 2, 2024 1:26 PM

DETROIT, July 2 (Reuters) - Ford Motor ( F ) is trying

to get more of its managers to buy electric vehicles, according

to an internal email the automaker sent last week that was

reviewed by Reuters.

The Dearborn, Michigan-based company changed a leasing

program it offers to eligible current and former managers, now

requiring them to order an electric Mustang Mach-E SUV or F-150

Lightning pickup if they wish to lease a supplemental vehicle.

Workers are allowed a set number of leased vehicles, typically

one to two, depending on their management level, before ordering

a supplemental car.

This is the first time Ford has restricted employees to

buying EVs for the supplemental lease program, a company

spokesman said.

"By encouraging our employees to drive an electric vehicle

through the optional program, they can learn firsthand how easy

it is and better share their experiences with friends and family

- a key way to increase familiarity with new technology," the

spokesman said.

Ford has thousands of managers, but the company declined to

say how many would be affected by the policy change. Vehicles

leased by Ford managers count as a sale for the automaker.

Sales of the F-150 Lightning have come in slower than Ford

CEO Jim Farley initially projected. After twice expanding

production capacity for the F-150 Lightning plant and adding a

third shift to the facility, Ford halved production of the

electric truck earlier this year.

Farley expected the plant to churn out trucks at a

150,000-vehicle annualized run rate, before walking back those

goals over the last year. Ford sold about 24,000 Lightnings in

2023 and about 41,000 Mach-E SUVs the same year.

Ford slashed prices of the Mach-E and Lightning several

times since early 2023 to spur demand and compete with price

cuts made by EV leader Tesla.

While the growth rate for EVs has slowed, demand for hybrids

has soared. Sales of Ford hybrids increased 25.3% in 2023 over

the year-ago period, outpacing the sales growth of EVs, which

logged a 17.9% increase over the same timeframe. Ford is set to

release first-half sales results Wednesday.

Farley has increasingly emphasized his focus on hybrid

production in recent months, saying these vehicles will be a

substantial part of Ford's portfolio for the foreseeable future.

If employees are driving a supplemental lease vehicle

different from the two EVs Ford designated, they must return

their vehicle or purchase it by May 15, 2025 the email sent to

managers said.

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