Granger Ford -2022 Bronco Allocation - No one said it was going to be easy

[1975U15]

Ordering online and purhasing a Tesla was the easiest , most stress free automobile purchase I’ve ever experienced.


Exactly this. Ordering , and taking delivery of my Tesla was the easiest most stress free car buying experience in over 10+ auto purchases.

My comment was directed at folks chiming in on this thread that argue Granger got what they deserved, but also seem to also think dealers charging ADM is outrageous. At the same time, provide no meaningful solution to Ford's changing of the rules once again that people are dealing with.

The Tesla model would be great. But that's not going to help anyone at this point currently in this situation is it? It doesn't offer a solution to the folks faced with a first night reservation getting a Bronco in 2024. But congrats on your Tesla purchase. You sound proud.

My experience: Ordering online and purchasing a Telsa Granger Bronco was the easiest , most stress free automobile purchase I’ve ever experienced.

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[Wanted33]

Because Ford cares about stock price. Devaluing the brand hurts the stock price. That's why they care.

I can tell you my dealer questions all his decisions based on what Ford thinks. We don't do anything that could tarnish our view with them. They control a lot more strings (additional allocation being one) than most probably know. Just my $.02 from a big dealer who talks to Dearborn a lot.

How is that devaluing the brand. Please explain that to me. Ford get their money, the dealers gets their money, and we should get our Broncos. The secondary market should be of no consequence to Ford. There's people chomping at the bits to buy a Bronco, so much so they are paying stupid high ADM's. Again I don't understand, how is this devaluing the brand.

I've been pissed off about this since Friday. I live outside of Chicago, and the Ford dealers around me are all scumbags who won't be clear with you about anything. I've talked to a couple about transferring and no one will give me a straight answer on either pricing or allocations.

I'm keeping my Granger reservation, and since i'm an attorney, im seriously considering suing Ford for breach of contract. I think based upon my $100 dollar deposit and the communication from Ford about the reservation system, i can make a case out of it. I think we might have some consumer protection laws in Illinois that i might be able to rope in as well as extra counts to my complaint, i have to do some research.

Litigation is extremely time intensive and expensive and I don't have a problem with using my own time to make Ford bleed a little bit. It may not be a lot to the company, but we'll see what they come up with and how far they are willing to take it. I'll litigate it out to trial through discovery over the next 2 years and see if they want to flush a couple bronco's worth of profit down the toilet over one pissed off attorney who isn't getting his bronco until 2030.

Add me as additional plaintiff, & if it doesn't get very far it will still be a huge egg on face for Ford with really bad press.

Me too, I think you could have at least 1000 Granger customers add their name to list. I don't want any monies, I just want my dang Bronco. Go get 'em brother.

 

[Wanted33]

Brand devaluing happens when you can pick up an F series for 12k off and 0%, not $1k below invoice.

True, and Ford does that with the F-150 all by themselves many times at the end of the model year. It's kinda of hypocritical to blame a small dealer of devaluing the brand by selling a Bronco at a discount. Of course I would love for Broncowannabe to explain how that actually works. It's easy to say words without an explaination. I can say I'm a Rocket Scientist, but it doesn't make it true.

 

[Deleted member 5064]

My comment was directed at folks chiming in on this thread that argue Granger got what they deserved, but also seem to also think dealers charging ADM is outrageous. At the same time, provide no meaningful solution to Ford's changing of the rules once again that people are dealing with.

The Tesla model would be great. But that's not going to help anyone at this point currently in this situation is it? It doesn't offer a solution to the folks faced with a first night reservation getting a Bronco in 2024. But congrats on your Tesla purchase. You sound proud.

My experience: Ordering online and purchasing a Telsa Granger Bronco was the easiest , most stress free automobile purchase I’ve ever experienced.

You got your Bronco delivered from Granger already? One of the lucky few? Seems to me there is about 45 pages so far in this thread about stress and frustration with Ford’s online reservation and allocation system

 

[North7]

How is that devaluing the brand. Please explain that to me. Ford get their money, the dealers gets their money, and we should get our Broncos. The secondary market should be of no consequence to Ford. There's people chomping at the bits to buy a Bronco, so much so they are paying stupid high ADM's. Again I don't understand, how is this devaluing the brand.

It doesn't, he is just a mega dealer trying to justify his high prices.

 

[Robtw]

I say we all buy from Granger.

 

[mpoteet]

I think this redirection has a lot to do with supply chain issues. Car dealerships of all brands are extremely low on inventory and have been for months. Supply chain recovery is predicted to be in Q3 of 2022, which is a long way away. I'd bet now it is to the point that the slow sel of inventory is not even covering a dealership's fixed costs. Restructuring the allocation formula is a tip in the direction to keep some dealerships solvent by spreading more non-reservation-order Broncos to dealer stock so the dealers can recoup financial losses from 2020 - 2022. The more dealerships that can stay afloat allows Ford to sell more units. An allocation formula that disfavors small dealerships could be antithetical to supporting Ford's dealership base.

If there is a root cause to all this, I'd say it was Ford's insistence to move forward with a direct-reservation process in the path of a global pandemic. Understandably Ford's executives had no crystal ball to tread into such an issue as a global pandemic with unknown outcome of it. Being positive that the would supply chain system would recover quickly, the decision to keep with the direct-reservation model, which left dealerships out of the loop, was in hindsight an error.

The whole thing is a mess. As an interested business person, how this is being navigated is insightful.

Question- what makes more money for the dealer; a 50,000 Bronco bought by a reservation holder, or a 50,000 Bronco bought off the lot by a non-reservation holder? There is no difference. Make the Broncos for the people that said they WANTED THE BRONCO in 2020 and gave them money then for one. It's NOT HARD.

 

[Rickey498]

I wonder if someone could work up a nice oval Granger logo in Vinyl? May be of some good use someday.

How about an oval G

 

[AZ_Liberty]

Brand devaluing? These things are being marked up by 15-30k by some dealers. How is that brand devaluing? You think a $2,000 under invoice price is going to make the news

Exactly. Bought a brand new F-150 in April. Dealership gave me $1500 off MSRP. Ford gave me $5200 in incentive cash, plus another $2k in additional trade in incentive.

That's a heck of a lot more than the $1400 off I would have got by going with Granger on my Bronco build.

 

[69351windsor]

We made the reservations with Ford. Dealer should not matter when filling reservations in order! Allocations should be for dealer stock.

EXACTLY!!!!!!

 

[Hobgoblin]

How about an oval G

That is a cool idea.

 

[Diydner]

I was wondering how long it would take for lawsuits to come into play. Maybe thats the route we need to take for Ford to live up to its promises. I say go for it.

@Ford Motor Company @mrlevine

 

[John Auer]

My grandfather owned a gas station that my father worked in as a young boy. It was what you would picture as a typical small town full-service gas station in rural Iowa. He grew up around the gas station and that is where he learned his blue-collar work-ethic. It is also where he first started to sell used cars at the age of 16. Fast-forward to 1978 he purchased a Dodge store in Granger, Iowa and later in 1987 he purchased a Ford dealership in Dallas Center, Iowa. He then relocated the Ford store to Granger and become what is now Granger Motors & Granger Ford.

He had a saying when we would complain growing up. “If it was easy, everyone would do it.” The last week has been a great reminder of that. Our staff, starting with Albert and now continuing with a 5-member team, has worked very hard over the last 16 months. Yesterday’s allocation announcement was a gut-punch. I tend to be a glass is half-full guy, and this certainly has been a test of that.

We have the Bronco6G community and a lot of loyal customers to thank for all their support and my responsibility lies with them. We want them to be taken care of properly. There is no other way to sugar coat it, the allocation formula does the biggest disservice to our customers. Ford decided to dip their toes in the “reservation” system emulating a method made popular by Tesla’s recent success. In the end, they couldn’t dive all the way in and reverted more closely back to the franchise/allocation system that has been in place for over 100 years. I get it. You want to reward the dealerships that have sold hundreds and thousands of vehicles on an annual basis. The franchise system also benefits the consumer because of discounts and aggressive pricing. If this was Tesla, there would be no discounts. There would be no Granger Ford.

To recap 2021, we received allocation of 203 units. This was on roughly 600 reservations we received before the allocation cutoff. It was reasonable to assume that moving from 6 to 12 months of production would safely bump our allocation to around 400. It was also a reasonable assumption that including all reservations as a factor, instead of just the September cutoff (1300+ reservations), would double our allocation count again to around 800 units. Adjusted down slightly, we were anticipating 700-ish Broncos for 2022. That isn’t how it is going to work out. Moving the “bronco” factor down from 50% to 25% and moving the factor from reservations to 2021 allocations was the worst possible scenario for our customers. We are left with 1075 orders converted from reservations currently. I would anticipate being able to fill 10-20% of our reservation count for 2022. That amounts to 120-220 Units depending on how production plays out. We received 11 for 2022 Model Year production start up.

So where do we go from here? Like I said before, our obligation lies with you the customer. So, whether you end up purchasing your Bronco from me or not, I want you to have a great experience and I want you to get your Bronco. So, there are a few things we can do as a store to help increase that allocation number.

What is Granger Ford going to do?

1. Bronco Facility – There is a Bronco facility upgrade that dealerships can opt into. This can increase our 2022 Allocation by 18 total units. We are absolutely going to spend the money and sign up for this.

2. Bronco Sport Sales – 25% of the allocation formula is Bronco Sport sales. We are going to become better at selling Bronco Sports than Broncos. We are now offering 6% under invoice on a Bronco Sport order. We are going to get as creative as possible to shoot this sales number up ASAP. We are going to be relentless in this pursuit. In my mind, this is our biggest opportunity.

3. Share of Nation Sales – This is over a 36-month period, so it’s going to be the hardest number to move. But because of our loyal online following and progressive business model. We have quickly moved up 20+ spots in our region YTD and I anticipate being one of the biggest, if not the biggest, Ford dealer in the state of Iowa for 2022.

4. We are committed to only selling to our reservation holders - 100% of our Broncos delivered have been to our reservation holders. Ford lowered the dealer’s name match standard to 60% because other dealers seem to have trouble making that work. We have it down to a science and will continue to value long-term commitments rather than short term profit.

5. Discount lock-in – We absolutely are going to honor our pricing agreements with our customers. $1000 under invoice or $2000 under invoice October special. This will not change.

6. Honest Conversations – Over the next 30+ days we are going to have open and honest conversations regarding your reservation and where you stand among our total reservation count. We will do our best to advise you of your best options and talk you through what makes the most sense for you. We are going to have your best interest in mind, regardless of whether you end up purchasing from us.

What can our reservation holders do?

1. Hang in there – No, we’re not going to send you a hammock. But I know there are a collection of our reservation holders that are loyal to us and how we do business. Their patience will be put to the test, but we are going to do our best to give monthly updates on our allocation and progress that we’re making on Bronco deliveries as well as our other goals to increase allocation.

2. Buy a Wrangler/Gladiator at 4% Under Invoice – if you are tired of the Bronco ride, we can offer you a Wrangler/Gladiator purchase at 4% under invoice and have it delivered to our store in 60-90 days. 2022 Wrangler and Gladiator ordering opened yesterday. Email [email protected] and we’ll be happy to send you a quote.

3. Find Another Bronco Dealer – I have confirmed that Ford will allow transferring of reservations/orders. We have heard of ADM horror stories, but there are other dealerships who are treating customers right. While they may not match our discounted pricing, you can make some calls/send some emails to other dealers and see where they stand. If you choose to transfer, you’ll need to call Ford’s customer service line at 1(800)392-3673 and request a transfer.

The next 12 months are going to be a grind and we’re committed to working harder than we have the past 16 months. We are starting to reap the rewards of our labor and by the end of the year, we will have the pleasure of delivering 150+ Broncos to our reservation holders. I don’t want your sympathy. We signed up for this. If anyone deserves your sympathy it is our reservations holders, who in my opinion, only deserve the best. We will keep grinding and we’re not going anywhere. Hey! If it was easy, everyone would do it.

Zach

My grandfather owned a gas station that my father worked in as a young boy. It was what you would picture as a typical small town full-service gas station in rural Iowa. He grew up around the gas station and that is where he learned his blue-collar work-ethic. It is also where he first started to sell used cars at the age of 16. Fast-forward to 1978 he purchased a Dodge store in Granger, Iowa and later in 1987 he purchased a Ford dealership in Dallas Center, Iowa. He then relocated the Ford store to Granger and become what is now Granger Motors & Granger Ford.

He had a saying when we would complain growing up. “If it was easy, everyone would do it.” The last week has been a great reminder of that. Our staff, starting with Albert and now continuing with a 5-member team, has worked very hard over the last 16 months. Yesterday’s allocation announcement was a gut-punch. I tend to be a glass is half-full guy, and this certainly has been a test of that.

We have the Bronco6G community and a lot of loyal customers to thank for all their support and my responsibility lies with them. We want them to be taken care of properly. There is no other way to sugar coat it, the allocation formula does the biggest disservice to our customers. Ford decided to dip their toes in the “reservation” system emulating a method made popular by Tesla’s recent success. In the end, they couldn’t dive all the way in and reverted more closely back to the franchise/allocation system that has been in place for over 100 years. I get it. You want to reward the dealerships that have sold hundreds and thousands of vehicles on an annual basis. The franchise system also benefits the consumer because of discounts and aggressive pricing. If this was Tesla, there would be no discounts. There would be no Granger Ford.

To recap 2021, we received allocation of 203 units. This was on roughly 600 reservations we received before the allocation cutoff. It was reasonable to assume that moving from 6 to 12 months of production would safely bump our allocation to around 400. It was also a reasonable assumption that including all reservations as a factor, instead of just the September cutoff (1300+ reservations), would double our allocation count again to around 800 units. Adjusted down slightly, we were anticipating 700-ish Broncos for 2022. That isn’t how it is going to work out. Moving the “bronco” factor down from 50% to 25% and moving the factor from reservations to 2021 allocations was the worst possible scenario for our customers. We are left with 1075 orders converted from reservations currently. I would anticipate being able to fill 10-20% of our reservation count for 2022. That amounts to 120-220 Units depending on how production plays out. We received 11 for 2022 Model Year production start up.

So where do we go from here? Like I said before, our obligation lies with you the customer. So, whether you end up purchasing your Bronco from me or not, I want you to have a great experience and I want you to get your Bronco. So, there are a few things we can do as a store to help increase that allocation number.

What is Granger Ford going to do?

1. Bronco Facility – There is a Bronco facility upgrade that dealerships can opt into. This can increase our 2022 Allocation by 18 total units. We are absolutely going to spend the money and sign up for this.

2. Bronco Sport Sales – 25% of the allocation formula is Bronco Sport sales. We are going to become better at selling Bronco Sports than Broncos. We are now offering 6% under invoice on a Bronco Sport order. We are going to get as creative as possible to shoot this sales number up ASAP. We are going to be relentless in this pursuit. In my mind, this is our biggest opportunity.

3. Share of Nation Sales – This is over a 36-month period, so it’s going to be the hardest number to move. But because of our loyal online following and progressive business model. We have quickly moved up 20+ spots in our region YTD and I anticipate being one of the biggest, if not the biggest, Ford dealer in the state of Iowa for 2022.

4. We are committed to only selling to our reservation holders - 100% of our Broncos delivered have been to our reservation holders. Ford lowered the dealer’s name match standard to 60% because other dealers seem to have trouble making that work. We have it down to a science and will continue to value long-term commitments rather than short term profit.

5. Discount lock-in – We absolutely are going to honor our pricing agreements with our customers. $1000 under invoice or $2000 under invoice October special. This will not change.

6. Honest Conversations – Over the next 30+ days we are going to have open and honest conversations regarding your reservation and where you stand among our total reservation count. We will do our best to advise you of your best options and talk you through what makes the most sense for you. We are going to have your best interest in mind, regardless of whether you end up purchasing from us.

What can our reservation holders do?

1. Hang in there – No, we’re not going to send you a hammock. But I know there are a collection of our reservation holders that are loyal to us and how we do business. Their patience will be put to the test, but we are going to do our best to give monthly updates on our allocation and progress that we’re making on Bronco deliveries as well as our other goals to increase allocation.

2. Buy a Wrangler/Gladiator at 4% Under Invoice – if you are tired of the Bronco ride, we can offer you a Wrangler/Gladiator purchase at 4% under invoice and have it delivered to our store in 60-90 days. 2022 Wrangler and Gladiator ordering opened yesterday. Email [email protected] and we’ll be happy to send you a quote.

3. Find Another Bronco Dealer – I have confirmed that Ford will allow transferring of reservations/orders. We have heard of ADM horror stories, but there are other dealerships who are treating customers right. While they may not match our discounted pricing, you can make some calls/send some emails to other dealers and see where they stand. If you choose to transfer, you’ll need to call Ford’s customer service line at 1(800)392-3673 and request a transfer.

The next 12 months are going to be a grind and we’re committed to working harder than we have the past 16 months. We are starting to reap the rewards of our labor and by the end of the year, we will have the pleasure of delivering 150+ Broncos to our reservation holders. I don’t want your sympathy. We signed up for this. If anyone deserves your sympathy it is our reservations holders, who in my opinion, only deserve the best. We will keep grinding and we’re not going anywhere. Hey! If it was easy, everyone would do it.

Zach

This whole sales system sucks. The OEM/dealership business model is due for a major overhaul.

 

[Richtor]

Question- what makes more money for the dealer; a 50,000 Bronco bought by a reservation holder, or a 50,000 Bronco bought off the lot by a non-reservation holder? There is no difference. Make the Broncos for the people that said they WANTED THE BRONCO in 2020 and gave them money then for one. It's NOT HARD.

Answer: whichever Bronco costs less for the dealer to purchase. If the dealer buys one for $40k and one for $51k and sell both for $50k which one makes more money?

To answer the other question which Bronco does Ford make more on?
It is the Bronco they sell that no one ordered. If Ford pre sells 50k Broncos in 21 but then moves 20k of those orders to 22, while selling an additional 20k Broncos as lot order they have just sold 70k Broncos not the original 50k unit total.

Wait I’ve seen this before….

 

[BigHoof]

Answer: whichever Bronco costs less for the dealer to purchase. If the dealer buys one for $40k and one for $51k and sell both for $50k which one makes more money?

To answer the other question which Bronco does Ford make more on?
It is the Bronco they sell that no one ordered. If Ford pre sells 50k Broncos in 21 but then moves 20k of those orders to 22, while selling an additional 20k Broncos as lot order they have just sold 70k Broncos not the original 50k unit total.

Wait I’ve seen this before….

Ding ding ding ding ding, sounds like we have a winner!

When Ford dropped the name match percent to 60%, everyone should have seen bad things coming. How hard would it of been to verify the customer backed out of his order vs the scumbag dealer added thousands to the customers over year long reservation thus stealing it from him? What better way to enable this than to drop the name match percent thus rewarding these crooks.

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