Ford (F) - Get Ford Motor Company ReportCEO Jim Farley is clear: Tesla is the firm's major competitor - Get Tesla Inc. Report
This implies that the legacy carmaker intends to become the market leader in electric vehicles currently owned by Tesla, the creator of the Model 3 sedan and the Model Y SUV. Sometimes, this ambition involves copying methods that work at Tesla, such as running over-the-air software updates that add new features and enhance existing ones over Wi-Fi.
Tesla states that over-the-air software updates add new features and improvements to your vehicle. Software updates are implemented on a regular basis.
Ford, which carried out a major and in-depth refit this year, by decoupling the activities of gasoline cars from those of electric vehicles, took over this uniqueness from Tesla, who's purpose is to keep the automobiles up to date with technological advancements and fix bugs or security issues as quickly as possible.
The Lease Buyout Option's End
Tesla has just copied yet another innovation from the carmaker. Ford has just ended the option given to Ford electric vehicle customers to buy out the vehicle at the end of the lease.
The new requirement will impact binding contracts or lease agreements in 38 states and will be deployed throughout the country by the end of the year. It will impact all arrangements made starting June 15.
Ford customers who had a lease before June 15 are not affected. This means that they will still have the option to buy out the vehicle at the end of their lease.
The F-150 Lightning pickup/truck, an electric version of the best-selling F-150, the Ford Mustang Mach-E sedan, and the E-Transit van, are all Ford electric vehicles currently on the market.
Ford claims that this major shift is primarily due to the fact that the company wants to maximize battery and other materials recycling as well as to the desire to reduce electric vehicle costs.
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Margaret Mellott, Ford Credit's financial arm, said the company wants to make electric cars more sustainable, reduce the battery expense, and ultimately help make electric automobiles accessible and affordable for more Americans.
"Fords' battery strategy involves recycling and localizing battery manufacturing, and Ford Credits' EV leasing program allows customers to replace their cars with the most recent model at lease end, while keeping the vehicle in the Ford network longer so that Ford can better manage battery recycling and materials."
Ford intends to establish a global battery facility, Ford Ion Park, in Romulus, Mich., to help with high-volume battery cell delivery, better range, and lower costs for customers.
Will Ford's profits increase?
Aber Ford's decision to no longer allow electric vehicle customers to buy out the vehicle at the end of their lease comes at a time when automobile costs have dramatically increased.
The Russian civil war in Ukraine has boosted the market for electric vehicles in many ways. Consumers have also encouraged manufacturers to hike their prices due to the Covid-19 epidemic.
Ford indirectly encourages its customers to purchase a new automobile, which is beneficial for the company because the new automobile costs much more.
Customers will be able to return the vehicle at the end of their lease, or they may return the vehicle at the end of the lease.
Tesla made a similar decision in April last year. Elon Musk's company announced that it would no longer be possible to purchase a leased automobile at the end of the lease since April 15.
"All Tesla vehicles delivered on or after April 15, 2022, are not eligible for purchase. Third-party dealers and third-party individuals are not eligible to purchase leased vehicles," the company said.