Bronco allocations released to dealers

[ChapEJF]

With an early morning 7/14 reservation I am as confident as I can be that I will get a MY21 Bronco because I have word from my dealer that I am within the window of their allocations. What for the life of me I do not understand is why Ford has kept open the reservation window? I find it hard to believe that they just realized that they can only build 70K Broncos for MY21 and they have spent 6 months promoting false hope for thousands of reservation holders. This and their metering out pics and details when the frenzy subsides to stoke the fire is manipulation on a grand scale, and we suck it up like a lost man in the desert discovering water. I see a massive PR nightmare for them on the horizon and it will be one that they created themselves.
Having said that, I will gladly order and receive my Bronco. Rant Complete!

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[AcesandEights]

Can't wait!

 

[Flourman]

With how many reservations?

I didn’t ask and he didn’t say.

 

[Bronc-O]

So where does this latest allocation delivery story put the Conversion percentage story?

Conversion Percentage from Bronco Reservations to Bronco Sold Orders

I originally said 60%. I just changed it to 50%.

 

[ronstar]

..... I find it hard to believe that they just realized that they can only build 70K Broncos for MY21 and they have spent 6 months promoting false hope for thousands of reservation holders.....

I think the bean counters have figured out some simple math.

Say Ford has 10 Broncos to sell. They charge $1 for a 2021 and $2 for a 2022 (due to a 2022 my price increase). They have the ability to build 5 this year if they worked another shift or OT. Then the remaining 5 next year. They would make $15 under this scenario.

But they instead make 3 this year (avoiding another shift/OT) and postpone the remaining 7 until 2022 my. They make $17 under this scenario.

So it makes sense financially for Ford to push as many Broncos as possible into my 2022. Higher sticker prices in 2022 and avoid higher 2021 production costs due to a shortened production season.

 

[Used2jeep]

With an early morning 7/14 reservation I am as confident as I can be that I will get a MY21 Bronco because I have word from my dealer that I am within the window of their allocations. What for the life of me I do not understand is why Ford has kept open the reservation window? I find it hard to believe that they just realized that they can only build 70K Broncos for MY21 and they have spent 6 months promoting false hope for thousands of reservation holders. This and their metering out pics and details when the frenzy subsides to stoke the fire is manipulation on a grand scale, and we suck it up like a lost man in the desert discovering water. I see a massive PR nightmare for them on the horizon and it will be one that they created themselves.
Having said that, I will gladly order and receive my Bronco. Rant Complete!

They should have just changed the reservation page to say 22.

 

[Rkeally]

I thought there was a formula to be used in allocations which included size (sales) of dealer, competitive vehicle sales in market and res conversions. How does a flat 30% allocation per dealer make sense if this formula is in fact being used?

 

[OrlandoBroncos]

I think the bean counters have figured out some simple math.

Say Ford has 10 Broncos to sell. They charge $1 for a 2021 and $2 for a 2022 (due to a 2022 my price increase). They have the ability to build 5 this year if they worked another shift or OT. Then the remaining 5 next year. They would make $15 under this scenario.

But they instead make 3 this year (avoiding another shift/OT) and postpone the remaining 7 until 2022 my. They make $17 under this scenario.

So it makes sense financially for Ford to push as many Broncos as possible into my 2022. Higher prices in 2022 and avoid higher 2021 production costs due to a shortened production season.

By that logic no business would sell anything until 50 years in the future when inflation makes their product worth $1 million.

But in the real world Ford wants to sell as many cars as possible every quarter or Wall Street will punish them and all the execs get fired. Corporations don't look beyond the quarterly numbers.

 

[Rickey498]

Granger isn't going to get the number they thought. Maybe more than most...but a lot of folks will be MY 22

I know for sure I am going to be MY22 that was my plan. But I want to know if with the allocation system if I am going to be pushed back to my 23 since granger has so many reservations, and I am going to be super pissed at Ford if dealers start getting broncos to sell out right before I get mine.

 

[OrlandoBroncos]

I thought there was a formula to be used in allocations which included size (sales) of dealer, competitive vehicle sales in market and res conversions. How does a flat 30% allocation per dealer make sense if this formula is in fact being used?

I posted this in another thread too but... Let me say it again: Ford has no idea how many orders they will get and no idea what options those orders will have to get an accurate number now. They literally looked at their production estimate and divided by reservations to give all their dealers a ballpark figure.

The actual allocation will not be available until April or May. If a dealer can't convert any reservations their allocation will be 0. If 100% of a dealer's customers convert but they all want Mansquatch their 2021 allocation will be 0 and some other dealer will get a couple more because their customers ordered things that Ford can build.

 

[ronstar]

By that logic no business would sell anything until 50 years in the future when inflation makes their product worth $1 million.

But in the real world Ford wants to sell as many cars as possible every quarter or Wall Street will punish them and all the execs get fired. Corporations don't look beyond the quarterly numbers.

I agree, but this is not a normal business season. Covid, startup, etc will cause initial production costs to skyrocket. They will be able to produce more than demand by year end 2022. So they will catch up to demand by the end of next year, but realize more sales and profits if they can avoid having to go gangbusters at the beginning.

 

[beto3005]

Call me dumb, but I was under the impression that allocations are mutually exclusive from reservation? I.e. dealer allocations = lot Broncos

is that actually a meaningful metric for the order process?

 

[Rkeally]

I posted this in another thread too but... Let me say it again: Ford has no idea how many orders they will get and no idea what options those orders will have to get an accurate number now. They literally looked at their production estimate and divided by reservations to give all their dealers a ballpark figure.

The actual allocation will not be available until April or May. If a dealer can't convert any reservations their allocation will be 0. If 100% of a dealer's customers convert but they all want Mansquatch their 2021 allocation will be 0 and some other dealer will get a couple more because their customers ordered things that Ford can build.

got it - thanks!

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