Why would dealers not receive a Bronco allocation for every order they convert?

[SamG]

So if ford has said (which they have, many times) that no dealer stock will be built for the first year - ONLY reservation stock... then I am struggling to see the issue here.

Why would dealers not receive a bronco for each and every order they convert? ESPECIALLY if the demand is so "unprecedented"?

Either the bronco goes to the rightful reservation holder, or, they back out and it gets bought instantly off of the lot.

Can someone explain this in simple terms? Then explain the logic or lack-there-of to me...

I understand delays based on sheer production capabilities vs converted order volume - but not receiving your bronco because of your chosen dealer is idiotic..

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[noahr]

So if ford has said (which they have, many times) that no dealer stock will be built for the first year - ONLY reservation stock... then I am struggling to see the issue here.

Why would dealers not receive a bronco for each and every order they convert? ESPECIALLY if the demand is so "unprecedented"?

Either the bronco goes to the rightful reservation holder, or, they back out and it gets bought instantly off of the lot.

Can someone explain this in simple terms? Then explain the logic or lack-there-of to me...

I understand delays based on sheer production capabilities vs converted order volume - but not receiving your bronco because of your chosen dealer is idiotic..

it is a matter of supply lines and a 6 month model year, sharing a plant with the ranger and that plant being super small, the extra hoops of being a brand new vehicle the nightmare of transportation, etc etc they can make like 60 k a year i believe the number was, there are almost 200k reservations its simple math, they distribute and allocate so every dealer has a chance, its not perfect but it is the best way to do it with how they set up the bronco process

 

[lobbs611]

Every Bronco will eventually get an allocation for every reservation turned to an order. It just won't happen in a shortened model year 21.

 

[A_Locke]

I'll echo what was said above. Here are some more details and math:

Most automobile plants produce somewhere in the 200-400k range of vehicles/year. This plant makes both the Ranger and the Bronco.

We don't know exactly how many Bronco reservations there are (maybe in the 150-200k range?) but we do know how many Rangers are made in that plant. Last year roughly 100k Rangers were sold/made.

So doing the math, let's say the plant can product 300k vehicles/1 year. Ranger will take up 100k of those so now there can be a max 200k Bronco's made in 1 year. Ford said they will start Bronco production in June so now you are only dealing with half the year which leaves only 100k Bronco's available to be made.

This creates a scenario where Ford can produce 100k Bronco's but you have more reservations than that (~150k+). Allocation is done on a yearly basis so those people who have reservations will still get them, just next year.

These are very rough estimates and numbers. I don't know what Ford's production capability is like at that plant. Point is, it's almost mathematically impossible for them to deliver all Bronco's as 21MY based on 150k+ reservations due to the numbers. Throw in COVID and production constraints and it could be less. It has nothing to do with which dealer you chose and everything to do with production numbers.

 

[da_jokker]

I'm with the OP, makes no flipping sense. FORD needs to start with FEs, then the Reservation list in order and build as many as they can and send them out to whatever dealer THAT Reservation holder happens to have picked.

This isn't Seinfeld Ford.. a Reservation means a Reservation... not, well it depends on which dealers we like more.

 

[ZackDanger]

It's really simple. There's more orders than there is capacity in MY21... but every order will eventually receive an allocation.


All "allocation" discussions are about MY21. Ford has said they haven't made a decision on MY22 allocation formulas or plans.

MY21 is short (6mo vs 1 year) and production will be ramping up and slower than full planned production speed.

The problem is literally just that Ford can not physically make enough Bronco's during the MY21 production to fill all orders.

Ford is going to hit MY22 production before all orders are filled... once that starts, they will just roll right into MY22 and continue fulfilling orders.

Every single order will be fulfilled eventually... it's just going to take more than the 6 months left in MY21 to do it.

 

[Lab00Rat]

I'm thinking that the dealers will convert 100% of all orders regardless of the reservation holder's choice. Change the order specifications after the order is placed to what the customer wants (if they still want the Bronco). All the reservations that are abandoned after conversion become dealer stock for retail.

Also, it'll increase their allocations for the next year by having as many conversions as possible, regardless or reservation holder actually buying the vehicle.

 

[Mrpenn46]

I'm with the OP, makes no flipping sense. FORD needs to start with FEs, then the Reservation list in order and build as many as they can and send them out to whatever dealer THAT Reservation holder happens to have picked.

This isn't Seinfeld Ford.. a Reservation means a Reservation... not, well it depends on which dealers we like more.

Except FoMoCo has to keep its dealer network happy, after all the dealer is the direct customer of FoMoCo no the consumer.

Besides, remember the golden rule: "He who has the gold makes the rules".

 

[Hopeless Diamond]

Yeah, something still feels off about the whole process. Seems to me, a good dealer that converts more of their reservations to actual orders are chastised and limited. I bet there will be some leveling after all the 1st round orders are in place and they have time to digest what they have to build and who for. In the mean time we can enjoy all the arm chair quarterbacking and teeth gnashing here on this forum.

 

[Bronco4lyfe85]

What is so complicated about this that we need a 500th thread?

 

[Hopeless Diamond]

What is so complicated about this that we need a 500th thread?

no where near done yet. I'm betting closer to 850 by the time the order banks close, maybe more.

 

[ZackDanger]

Yeah, something still feels off about the whole process. Seems to me, a good dealer that converts more of their reservations to actual orders are chastised and limited. I bet there will be some leveling after all the 1st round orders are in place and they have time to digest what they have to build and who for. In the mean time we can enjoy all the arm chair quarterbacking and teeth gnashing here on this forum.

It seems to me the opposite. The allocation formula is weighted 50% on reservations converted to orders. The more orders a dealer converts the more allocations they get.

 

[Compta38]

If Ford wasn't run by complete idiots they would go by reservation timestamp regardless of dealer. Why should people who ordered in early AM of 7/14 get screwed out of a 2021 just because of allocation? If they have the capacity to build 60k Broncos then pull the first 60k reservations that want to convert to 2021 and don't play fucking games because of where the reservation is.

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