Stairmaster Returns, Ford Halts New EV Trucks, GenZ Money Skills

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

It’s the first Friday of the Month and we’re talking about another OEM’s return to stair step incentive programs. We also talk about Ford’s throttling back on some new EV truck models, as well as GenZs propensity for financial responsibility.

Ford is the next OEM to get back on the stairmaster as it reactivates stair-step incentives to boost F-150 sales, stirring up a mix of concern and strategic maneuvering among dealers.

• The program applies to certain 2023 models, including gasoline, hybrid, and Lightning variants, aiming to move inventory as 2024 models face delivery delays.
• Critics argue stair-steps erode trust and create pricing confusion, with calls for transparency and direct incentives to customers.
• Dealerships earn $750 per truck if they meet their monthly sales target, $1,000 per truck for reaching 120% of the target, and in February and March, the incentive was $1,500 per truck for surpassing the target by 120%.
• Nick Anderson, general manager of Chuck Anderson Ford in Excelsior Springs appreciates the help to move vehicles but has deeper concerns about causing more customer confusion:
  • "My main goal is for the customer to 100 percent understand everything," Anderson said. "When manufacturers have these hidden offers that the dealership is aware of but the customer doesn't understand, I think it hurts the relationship between the consumer base and the dealer body. Manufacturers are never really on the hook to explain anything."
    

Ford has postponed the debut of new electric SUVs and trucks in North America, delaying the launch of three-row EVs in Canada to 2027 due to a global dip in EV demand and to await market development and advancements in battery technology.

• Tennessee's new electric truck production pushed to 2026, aiming for gradual quality-driven output increase.
• Amidst financial losses in its EV segment, Ford focuses on integrating hybrid options across its gasoline vehicle range.
• "We are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid, and fully electric vehicles at the right time," says CEO Jim Farley.
  

Gen Z is defying the financial stereotypes inherited from their predecessor Gen Y, as nearly 80% reject the notions of 'doom spending' and 'soft saving' as reflective of their financial behaviors, according to a Cleo survey.

• "Doom spending" refers to the act of excessively spending money as a way to cope with economic or financial stress.
• Inflation has prompted nearly 4 in 5 Gen Zers to adapt their spending, emphasizing their proactive approach to financial management.
• Notably, 30% of Zoomers (ages 16-27) have started saving even before adulthood, showcasing early financial responsibility.
• Cleo's survey reveals that 41% of Gen Zers completely disassociate from 'doom spending’

Hosts: Paul J Daly and Kyle Mountsier
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