- Thread starter
- #16
A lot of businesses are loving this new normal. Think about it. Ford is able to fill orders late and have better margins. They are able to forecast production so much better. Gone are the days of having 20 extra vehicles on every dealer lot that nobody really wanted that much. The average prices paid are going up, the time on lot is way down, and production efficiency is way up.Figure that part of the profits had to be that $100 reservation fee that implied that we were in line. I've heard that there were about 125,000 reservations converted to orders, that's 12.5 million dollars. Then five months after accepting reservations was the first mention of Dealer allocation being part of the formula for calculating when our builds would happen.
Hang in there, it's all we can do. Hoping that the wait will be worth it for all of us.
So although these supply chain problems and global challenges do create customer service challenges, Ford is kind of lucky because so many customers are kind of stuck and figure this is the way it is. And what else are you going to do? Everyone is in the same boat.
But this is actually all VERY good for Ford's profits. And if they can maintain a similar model going forward but just with more and more sales, why wouldn't they do that? If customers will go along with it, it's way better for them.
Sponsored