The Ford EV benefits program aims to boost sales

DETROIT – Ford engine It aims to boost sales of its electric vehicles by addressing potential customer concerns through a new program that includes free installation of home charging stations and other benefits.

The Ford Power Promise program begins Tuesday for customers who buy or lease a new Ford electric vehicle such as the F-150 Lightning pickup or Mustang Mach-E crossover. Part of the goal is to reduce the financial burdens of owning an electric vehicle, such as the need for a home charger. The program also aims to educate new electric vehicle owners about the transition from traditional gasoline vehicles.

“We're definitely trying to grow our business, but the best way to grow our business is to serve our customers well,” Marin Gjaja, chief operating officer for Ford's Model e-EV business, told CNBC. “Refueling at home is really important, but so is having confidence in the durability and lifespan of the battery.”

The program comes as electric vehicle sales are growing more slowly than many previously expected. Early adopters took refuge in vehicles, but automakers have struggled to expand sales to mass-market buyers because of costs, charging infrastructure and other hurdles.

Ford's program aims to address many of those concerns, Gjaja said. It's designed to address what Ford calls “change anxiety,” a play on the industry-standard concept of “range anxiety,” which refers to the fear that an electric vehicle will lose battery power between charging stations.

“We believe this is great for our customers, but we also believe the way it is built will provide education for both buyers and prospective buyers,” Gjaja said. “We’re trying to get people off the fence.”

The program includes standard Level 2 home charger installation for $1,310, free 24-hour consultation service and roadside assistance for five years or 60,000 miles, whichever comes first.

If customers do not need a home charger or opt out of the program, they will instead receive an equivalent of $2,000 toward the purchase or lease of the vehicle. The advisor and roadside assistance are also available to current Ford EV owners.

The free electric vehicle charger installation offer is currently only valid for the fourth quarter, but Gjaja said the company may extend the time frame of this offer.

The company said it would also expand information on its existing 8-year or 100,000-mile battery warranty – an industry standard that Ford was unaware of for its electric vehicles, which many consumers were unaware of.

“We want to make sure people understand that we stand behind the battery and that the battery can be serviced,” Gjaja said.

In addition to the battery, Ford's EV warranty also covers a vehicle's entire high-voltage system. Other components are covered for three years or 36,000 miles, whichever comes first.

The company did not provide any information about possible costs for the new “Ford Power Promise” program.

Ford was the third best-selling electric vehicle maker in the first half of the year, behind US industry leader Tesla and Hyundai engineincluding the luxury brand Genesis and its sister model Kia.

Selling electric vehicles remains a complicated equation for legacy automakers like Ford. Electric vehicles lose money or remain far less profitable than gasoline-powered models, but they help automakers meet stricter federal fuel economy standards and are a growth area for companies.