CNBC: Ford CEO Jim Farley’s frustration builds as he vows to transform the automaker

[Hossfire]

I can't speak for all of Ford's products, but elements of Bronco's design and marketing should have been reined in (pun intended).

1) Any part sourced from China that could be alternated with another source should have been. Look at Badlands. They have two wheel/tire options. Different vendors for both. The same thing could have been done for Sasquatch.

2) Models vs. "Appearance Packages". Until HOSS 3.0, Wildtrak was just a cosmetic version of a SAS OBX. The Heritage "models" are cosmetic versions of other models.

3) Interior complexity with questionable value. Does each model need to have different colored seat stiching and accent colors? How many different different seat material and color variations are there across the various models? How about allowing each model MGV (black), and a cloth (black or tan) and leather (black or tan).

4) Everglades. Did we really need this in the second model year?

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[LazygonInfinity]

1) That's a great want for consumers but it ignores how manufacturing works. The entire previewing and such happens when Ford compares what it is available to build (parts) and what is out there to be built (orders). I'm not saying it couldn't be better, but I also know I don't know Ford's situation with parts suppliers etc. 2) You already mostly answered your own question. Ford has nothing to do with the dealers. They are independent. You don't buy your car from Ford, you buy it from the dealer. I think the dealer protection model is stupid but until the law changes (which it should, but won't) Ford has little to nothing it can do to dealers.

1) How difficult would it really be to build an online ordering system with fewer trim levels and more a la carte options? It could be very simply noted on that system when a part is constrained in some way and will delay build and delivery of the vehicle. Then at least the consumer is making a clear choice at the time of ordering without the unnecessary dealer allotment or other nonsense cluttering the process.

2) Ford has everything to do with the dealers. They sell Ford vehicles pursuant to a franchise agreement. Dealers don’t have the right to pop out of a hole in the ground and start taking delivery of new Ford Vehicles. Those dealer agreements always provide the manufacturer the right to terminate the agreement for certain unsavory conduct by the dealer. The only reason we don’t buy our car straight from Ford is because it’s dealer system is antiquated and those dealers have powerful lobbies in some states where direct sales are unlawful. Please, tell me how that supports this “it’s still a free country“ notion, because that seems like the exact opposite thing to me. It’s a crooked system that benefits only the dealer, harms Ford’s reputation, and takes additional money from the consumer. I guarantee you that behind closed doors, the big wigs at Ford despise their dealer network and would do about anything to rid themselves of dealers having any say in new vehicle sales.

To put it another way, is there ever a scenario where the dealer is selling a new vehicle and not ultimately turning a profit, even when sold below MSRP? Sure, Ford could increase new vehicle prices in a direct to consumer scenario, but the dealer always increases the ultimate price to you, the consumer, or its model would ultimately fail.

Service and used car sales are a different matter entirely, my issue is purely with the price gouging in new vehicle sales.

 

[vrtical]

1) How difficult would it really be to build an online ordering system with fewer trim levels and more a la carte options? It could be very simply noted on that system when a part is constrained in some way and will delay build and delivery of the vehicle. Then at least the consumer is making a clear choice at the time of ordering without the unnecessary dealer allotment or other nonsense cluttering the process.

Porsche, GM, BMW and others do this better with a la carte options. Fords idea of packaging them together into higher option levels that forces the customer to pick a bunch of crap just to get one option they really wanted forcing more constraints. This is why a HUGE majority of early reservation holders were all FE / WT / BL which Ford completely missed the forecast. A base sasquatch build is a killer trim option, but Ford did it wrong having to go to a High package to get the heart of the remaining options, that really sold the Bronco.

 

[Jdc]

Not a soul complains about dealership prices when the vehicle they want or order sells for thousands under sticker. It is the way the game is played. Items in demand cost more. Items that aren’t cost less. The product issues due to the fallout from the Boogie man virus are the extreme and not the norm. Ford and all the other car makers will experience CEO shake ups due to the depth of the economic recession that is on the way. Just like every recession prior has done.

There are a lot of products where direct sales from manufacturers are a thing. You can still get discounts but rarely do you see ADM.

 

[LazygonInfinity]

Porsche, GM, BMW and others do this better with a la carte options. Fords idea of packaging them together into higher option levels that forces the customer to pick a bunch of crap just to get one option they really wanted forcing more constraints. This is why a HUGE majority of early reservation holders were all FE / WT / BL which Ford completely missed the forecast. A base sasquatch build is a killer trim option, but Ford did it wrong having to go to a High package to get the heart of the remaining options, that really sold the Bronco.

To be fair to Ford, I think they've done an overall excellent job with the Bronco. It is a fantastic beast. But the packaging and options don't quite make sense. Too many trim levels, too many features/options constrained to specific trims. For instance, why can you not get marine grade vinyl seats, washout floors, or a disconnecting sway bar as standalone options on a Wildtrak, which is the highest trim with the beefiest off-road suspension? Or why no sport mode on a Badlands but it is present on all of the trim levels below it? Or why can you upgrade the headlights on a Big Bend, but not a Black Diamond? It's just all a bit nonsensical. I ended up ordering a Base Sasquatch (which I love), because it felt like that was by far the best value for money, and every other trim forced me to fork over thousands more for one or two additional, relatively minor features.

If I were running things at Ford, I would eliminate Big Bend trim and offer its features as standalone options for the Base and Black Diamond trims. I would also combine the Badlands and Wildtrak into one trim so that you could get a disconnecting sway bar, marine grade vinyl, HOSS 3.0, and all GOAT modes in one top trim.

 

[sgraing1]

One large problem is that absenteeism is out of control at Ford.

 

[MayhemMike]

Sorry, Mary Barra, the GM CEO, did not get the memo...

GM shoves aside recession fears with robust 2023 forecast

GM shares surge after record earnings and new stake in lithium company

Please stop repeating the myth, here are but a few tools the manufactures DO HAVE over the dealers.

In addition, the automotive websites have shed light on the subject:

Automakers Can Reduce Dealer Markups With a Simple Policy

Ford, GM Make Stronger Push to Stop Flipping,

Sorry, Mary Barra, the GM CEO, did not get the memo...

[URL='https://www.reuters.com/business/autos-transportation/gm-reports-higher-quarterly-profit-forecasts-lower-results-2023-2023-01-31/']GM shoves aside recession fears with robust 2023 forecast

GM shares surge after record earnings and new stake in lithium company

Seems just like yesterday GM required a tax payer bail out in order to stay in business. You win some, lose some, and some get rained out.

 

[rocko107]

The "base" model of every vehicle from every manufacturer is always the best value, though in the case of the Bronco it's pretty extreme, boarding on comical. If you spec a Base 4 door with /Sas, vs. Big Bend 4 door w/Sas, each with no other options its a $3425 difference. What did that $3425 get you.

* Leather Steering Wheel and shif knob
* Carbonized grey grill

Basically, Big Bend is more or less a gate keeper for being able to select other "optional" items like the mid-package or even a tow-hitch from the factory. It is all together a huge money grab.

 

[tater_70]

1) How difficult would it really be to build an online ordering system with fewer trim levels and more a la carte options? It could be very simply noted on that system when a part is constrained in some way and will delay build and delivery of the vehicle. Then at least the consumer is making a clear choice at the time of ordering without the unnecessary dealer allotment or other nonsense cluttering the process.

2) Ford has everything to do with the dealers. They sell Ford vehicles pursuant to a franchise agreement. Dealers don’t have the right to pop out of a hole in the ground and start taking delivery of new Ford Vehicles. Those dealer agreements always provide the manufacturer the right to terminate the agreement for certain unsavory conduct by the dealer. The only reason we don’t buy our car straight from Ford is because it’s dealer system is antiquated and those dealers have powerful lobbies in some states where direct sales are unlawful. Please, tell me how that supports this “it’s still a free country“ notion, because that seems like the exact opposite thing to me. It’s a crooked system that benefits only the dealer, harms Ford’s reputation, and takes additional money from the consumer. I guarantee you that behind closed doors, the big wigs at Ford despise their dealer network and would do about anything to rid themselves of dealers having any say in new vehicle sales.

To put it another way, is there ever a scenario where the dealer is selling a new vehicle and not ultimately turning a profit, even when sold below MSRP? Sure, Ford could increase new vehicle prices in a direct to consumer scenario, but the dealer always increases the ultimate price to you, the consumer, or its model would ultimately fail.

Service and used car sales are a different matter entirely, my issue is purely with the price gouging in new vehicle sales.

When you think about it, the dealership has nothing to do with the design, development, configuration, testing, and all the years, months, days, in bringing a new Ford to the showroom floor. All they do is provide a warm place to showcase Ford products that God only knows involved thousands of hours of design and labor to produce. Yet, they have the gonads to charge ridiculous ADM's and other charges on a vehicle that has spent less than a few hours on their lot. It's a pretty good gig, just have a well lit showroom and rake in the $$. I'd love to see Ford go with direct sales and eliminate all the BS a faithful Ford buyer has to endure with dealerships.

 

[MJJ]

One large problem is that absenteeism is out of control at Ford.

What is the backstory?

 

[sgraing1]

People are taking a lot of time off from work under the Family Medical Leave Act (FMLA).

 

[PrepVet]

People are taking a lot of time off from work under the Family Medical Leave Act (FMLA).

With what justification?

 

[sgraing1]

Justification is between employers, the employees, the doctors, the FMLA Law, etc......
12 weeks unpaid leave a year is possible in some cases.
I never used FMLA myself.

 

[AZ_Liberty]

. What did that $3425 get you.

* Leather Steering Wheel and shif knob
* Carbonized grey grill

You also get factory tint on the hardtop

 

[PrepVet]

1) How difficult would it really be to build an online ordering system with fewer trim levels and more a la carte options? It could be very simply noted on that system when a part is constrained in some way and will delay build and delivery of the vehicle. Then at least the consumer is making a clear choice at the time of ordering without the unnecessary dealer allotment or other nonsense cluttering the process.

Nothing, I like that idea. As do I think most consumers. The problem being that the constraining items can and do change. It would not be feasible to keep it fully up to date. However Ford could state more on their site other than the boilerplate statement it has about product availability when you click the "build and price."

2) Ford has everything to do with the dealers. They sell Ford vehicles pursuant to a franchise agreement. Dealers don’t have the right to pop out of a hole in the ground and start taking delivery of new Ford Vehicles. Those dealer agreements always provide the manufacturer the right to terminate the agreement for certain unsavory conduct by the dealer. The only reason we don’t buy our car straight from Ford is because it’s dealer system is antiquated and those dealers have powerful lobbies in some states where direct sales are unlawful. Please, tell me how that supports this “it’s still a free country“ notion, because that seems like the exact opposite thing to me. It’s a crooked system that benefits only the dealer, harms Ford’s reputation, and takes additional money from the consumer. I guarantee you that behind closed doors, the big wigs at Ford despise their dealer network and would do about anything to rid themselves of dealers having any say in new vehicle sales.

To put it another way, is there ever a scenario where the dealer is selling a new vehicle and not ultimately turning a profit, even when sold below MSRP? Sure, Ford could increase new vehicle prices in a direct to consumer scenario, but the dealer always increases the ultimate price to you, the consumer, or its model would ultimately fail.

Service and used car sales are a different matter entirely, my issue is purely with the price gouging in new vehicle sales.

You are confusing a purchased franchise from Ford and Ford Motor Company.

Ford has little to nothing to do with dealers. The franchise agreement is so nebulous in wording that it is next to impossible to terminate.

And I have not seen anyone supporting the dealership model on here. That's fine postulation but who is supporting it? Consumers should be able to purchase straight from Ford not a Ford dealer, which is not Ford.

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