Ford urges its managers to buy more EVs with new leasing policy

Ford Motor Company has implemented a new policy aimed at increasing electric vehicle adoption among its managerial staff, as revealed in an internal email sent last week and subsequently reviewed by Reuters.

The automotive giant, headquartered in Dearborn, Michigan, has modified its existing leasing program for eligible current and former managers. Under the new guidelines, managers who wish to lease a supplemental vehicle are now required to choose either an electric Mustang Mach-E SUV or an F-150 Lightning pickup. It's important to note that employees are typically allowed one to two leased vehicles, depending on their management level, before they have the option to lease a supplemental car.

This policy change marks the first instance where Ford has limited employees to selecting only electric vehicles for the supplemental lease program, according to a company spokesperson. The rationale behind this decision, as explained by the spokesperson, is to provide employees with first-hand experience of electric vehicle ownership. By driving these vehicles themselves, managers can better understand the technology and share their experiences with friends and family, which Ford sees as a crucial method for increasing familiarity with and adoption of electric vehicles.

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While Ford employs thousands of managers, the company has not disclosed the exact number of employees who will be affected by this new policy. It's worth noting that vehicles leased by Ford managers are counted as sales for the automaker, potentially boosting the company's electric vehicle sales figures.

This initiative comes at a time when sales of the F-150 Lightning have been slower than initially projected by Ford CEO Jim Farley. Despite previously expanding production capacity for the F-150 Lightning plant twice and adding a third shift, Ford was compelled to halve production of the electric truck earlier this year. Farley had initially expected the plant to produce trucks at an annualized rate of 150,000 vehicles, but these goals have been revised downward over the past year.

In 2023, Ford sold approximately 24,000 Lightning and 41,000 Mach-E SUVs.

To stimulate demand and compete with price reductions made by EV market leader Tesla, Ford has implemented several price cuts for both the Mach-E and Lightning models since early 2023.

Interestingly, while the growth rate for electric vehicles has slowed, demand for hybrid vehicles has surged. Ford's hybrid sales increased by 25.3 per centin 2023 compared to the previous year, outpacing the growth of EV sales, which saw a 17.9 per centincrease over the same period. The company is scheduled to release its first-half sales results on Wednesday.

In recent months, CEO Jim Farley has increasingly emphasized Ford's focus on hybrid production, stating that these vehicles will continue to play a significant role in the company's portfolio for the foreseeable future.

The internal email sent to managers also outlined a deadline for those currently driving a supplemental lease vehicle other than the two designated EVs. These employees must either return their current vehicle or purchase it outright by May 15, 2025.

This policy shift reflects Ford's commitment to accelerating electric vehicle adoption, starting with its workforce, while also navigating the changing landscape of consumer preferences in the automotive market.