These Dealers Say Ford Paid $600 For EV Repairs Worth Nearly 40 Times
- Dealers say Ford only paid $600 per EV battery replacement.
- They claim the real cost should be $22,600 per battery.
- More lawsuits are reportedly being prepared in other states.
As more legacy automakers navigate the shift to electric vehicles, the complexity of servicing and supporting them is beginning to reveal fault lines, especially when it comes to who pays for what.
Ford is now facing allegations that it underpaid two New York dealerships for comprehensive EV battery replacements, according to a lawsuit filed in US District Court.
Read: Ford Accused Of Advertising A Missing Feature On New Trucks
And the trouble may not stop there, as attorneys say similar legal actions are in motion and could eventually be consolidated into a class action, raising the stakes for the company.
Jericho Turnpike Auto Sales and Patchogue 112 Motors allege that Ford has sidestepped state warranty reimbursement laws by issuing low flat-rate payments for full battery pack replacements, rather than covering the actual costs of the repairs.
The dealer says it has completed 15 EV battery replacements on Ford models since early 2024. Of those, Ford allegedly reimbursed the dealer just $600 per battery for 13 jobs that should have cost $22,600 each, leaving a gap of $286,200. In the remaining two cases, the dealer received $13,000 per battery. Even so, the lawsuit claims Ford still failed to pay the full amount.
Patchogue 112 Motors reports a similar pattern, stating it was paid only $600 per battery instead of the expected $22,600.
What Are Ford’s Responsibilities?
At the heart of the lawsuit is the question of how franchised dealerships are compensated for warranty and service contract repairs.
The filling alleges that Ford ignored legal requirements despite a state statute requiring manufacturers to reasonably cover repairs and manufacturer service contracts not “less than the price and rate charged by the franchised motor vehicle dealer for like services to non-warranty and/or non-service contract customers.”
That includes the cost of parts plus a 40 percent markup. Dealers are also allowed, under the law, to apply their typical non-warranty retail markup on labor, which can range from 70 to 200 percent depending on the service. The lawsuit claims Ford has not followed these provisions.
Leonard Bellavia, one of the attorneys representing the dealerships, told Auto News that Ford isn’t alone. His firm is pursuing similar claims against other automakers in multiple states, all centered on what he describes as a pattern of failing to meet warranty payment obligations