New York Dealerships Attempt to Pull the Plug on Ford’s EV Plans

This critical incident presents a business dilemma faced by Ford Motor Company and its CEO, Jim Farley. Four New York Ford dealerships filed a lawsuit on November 29, 2022 to stop Ford from implementing its planned Model e certification program. The legal action occurred three days before all dealerships across the United States were required to report their chosen level of participation in the program. The plan would drastically alter relationships with dealerships, leaving many without the opportunity to sell popular EV vehicles such as the Mustang Mach-E crossover and F-150 Lightning pickup. Farley, however, believed the program was necessary to increase Ford’s cost competitiveness against Tesla and capture a greater share of the growing EV market. Students are asked how Jim Farley should respond to the lawsuit and accusations made by the four dealerships.