Dealer warning from Ford and GM.

[Murfman]

Ford And GM Are Now Warning Shrewd Car Dealers For High Price Markups (msn.com)

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[Lowcountry Bronco]

Rehash news story, wasn't Farley's comment many many months ago? You can see how that has immediately stopped all ADM's and price gouging from their customer focused dealers.

 

[Philvis77]

The NADA lobby is 100 years strong. Ford and Chevy are just blowing smoke. NADA has way too many politicians in their pocket to let these auto manufacturers do anything about their grip on the industry.

 

[BroncoWTFAN]

Would be great news if Ford actually did something besides just hot air.

 

[AzureGray6G]

Ford And GM Are Now Warning Shrewd Car Dealers For High Price Markups (msn.com)

I'm guessing that the only way the manufacturers are going to be able to stop it, assuming they really want to, is to take over the sale itself, as Ford is "kindof" doing it with their EV car sales. And I'm guessing that the dealers are going to say "nobody complains when I have to sell vehicles below invoice to be competitive!?" But one might question if a dealer has ever had to go $25k to $50k below invoice to be competitive? And, this supply-demand issue probably also contributes to our extreme inflation - the egg industry (just as an example) has found out that, even if they double the price of their eggs, people still buy them. In some ways, for a manufacturer, it's a dream situation - for them it might be "better" to sell 10 pencils for a dollar apiece that a hundred pencils for ten cents apiece.

 

[Murfman]

I'm guessing that the only way the manufacturers are going to be able to stop it, assuming they really want to, is to take over the sale itself, as Ford is "kindof" doing it with their EV car sales. And I'm guessing that the dealers are going to say "nobody complains when I have to sell vehicles below invoice to be competitive!?" But one might question if a dealer has ever had to go $25k to $50k below invoice to be competitive? And, this supply-demand issue probably also contributes to our extreme inflation - the egg industry (just as an example) has found out that, even if they double the price of their eggs, people still buy them. In some ways, for a manufacturer, it's a dream situation - for them it might be "better" to sell 10 pencils for a dollar apiece that a hundred pencils for ten cents apiece.

Thing is, the big car manufacturers are not getting the profits, just the dealers charging, sometimes upwards of 50K, that are pocketing the money.

 

[Weld3z]

Dealership in UAE, Dubai went crazy asking price for outer bank $74000 not fully loaded non SAS package !!

 

[swooshdave]

I remember when everyone was complaining when dealers were competing for the best prices... oh, wait.

 

[Rootdog]

My cynical side tells me this will all work itself out as the economy tanks. The manufacturers get to look like they’re trying to stop ADMs in anticipation of no one being willing or able to pay them anymore. See how it goes?

 

[DaveH]

As indicated above, this is old info. The quote from Farley was from Feb '22. Are there any reports that this ever happened???

Ford CEO, Jim Farley, said, "we have very good knowledge of who they are, and their future allocation of the product will be directly impacted."

 

[Min_Ahn]

Just shut down one of the dealerships and set a precedent already.

 

[Cable Guy]

Nudge and a wink from these CEO’s to, especially, their large dealers. They could stop the mark-ups if they actually chose to do so.

 

[Wilson66]

Rehash news story, wasn't Farley's comment many many months ago? You can see how that has immediately stopped all ADM's and price gouging from their customer focused dealers.

My retirement dream is to get a job in service industry company than has the motto “Customer is always wrong”. Lol.

 

[XCR440]

Another click bait story.

Ford is doing something about the markups, they're raising prices to the point there's no room left for the dealer to mark up, look at Lightning as a good example (base model has a $12,000 increase since 22 ordering started). Transit vans went up another $1500 today, I expect when Super Duty order bank opens at the end of the month we're in for a huge increase.

 

[thatspecialbeat]

It looks like Ford is trying to push down ADM on just electric vehicles. I have only seen Ford get involved on electric models. When it is not electric, then "Dealerships are separate entities and we have no control over . . ."

I have yet to hear of any dealership being forced by Ford to drop ADM on an ICE vehicle.

And for sure I have not heard any dealership losing allocations for excessive ADM or selling reservations to non-reservation holders.

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