Dealer warning from Ford and GM.

[Razorbak86]

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.

Agreed. Most external media recaps of this issue miss that it was only related to Battery Electric Vehicles (BEVs), not Internal Combustion Engine (ICE) vehicles.

I was listening to Ford’s quarterly conference call when the issue was first raised, and I posted about it on another thread.

Don’t get too excited unless you’re an EV customer. Wait for the conference call transcript for context.

The transcript was published a few days later and quotes the entire conversation between Brian Johnson, senior equity analyst at Barclays following the U.S. Autos and Auto Parts sector, and Jim Farley, Ford’s CEO.

https://shareholder.ford.com/investors/financials-and-filings/default.aspx
https://s23.q4cdn.com/799033206/files/doc_financials/2021/q4/4Q-2021-Earnings-Transcript.pdf

TL;DR — The Internal Combustion Engine (ICE) and Battery Electric Vehicle (BEV) markets are different and will be treated differently. The crackdown will be on the BEV side of the market, because Ford’s primary competitor there (i.e., Tesla) offers fixed pricing and has no franchise dealerships.

This issue also influenced Farley’s decision to reorganize the corporation into different operating units (e.g., Ford Blue, Ford Model e).

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[samanator]

I'm also a watch collector. Rolex has a 3-5 year waiting list at dealers for nearly every model of their sports watches, yet no authorized dealer can charge over retail price controlled by Rolex. Now grey market after the initial sale they have no control over. Regardless of what is happening in the market, Ford could shut this down in a heartbeat. That they don't says volumes.

 

[hemiblas]

2023 allocations are only rewarding bad dealer behavior.

 

[Russ1Bronco]

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

This happened in NJ many years ago..The state's largest (8 million pop.) The Ford dealership was part of Autoland in Springfield...They also have Toyota and Dodge today...I go on line one morning to build a Shelby..and Autoland no longer sells Ford products..We'll never know what he reason was,they'll blame each other..but my point is ..It can happen..

 

[Blaven]

If I worked for Ford, I'd find a dealer doing the insane markup, contact them pretending to be a buyer, then showing up and taking the vehicle from them and handing them a check for whatever they bought it off Ford for. Now what to do after it's taken is another thing. But it has to be stopped. People buying things and marking up the shit out of it is one of the problems in our economy today.

 

[Deleted member 3063]

Ford and GM have legal contracts with various dealers and those contracts have a finite life span. What little they can do must be within the agreements terms and lifetime. Allocations are what is most often mentioned as possible punishment. Trouble there is the buyer gets it the neck as collateral damage.

In Fords case these contracts are with Ford Blue. Ford Model E is the new kid and I'd expect any contracts to be very different as it was part of the reason for the split despite what they tell the press. Remember the direct to buyer talk? So what? The what is leverage against rogue dealers wanting Model E business.

Ford to dealers gouging buyers, "no EV soup for you". Dealer to Ford "give me a Mach-E I'll behave." As more business shifts EV bad Ford dealers are screwed. Ford can always sell direct or franchise new Model E dealers.

 

[Ft. Worth Rob]

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

That hot air Ford is spewing isn’t just any old air, it’s $200 nitrogen.

 

[HoosierDaddy]

I expect when Super Duty order bank opens at the end of the month we're in for a huge increase.

Damn .... HUGE increase??
Had a new SD on my mind ... I guess I'll hold out for the bottom to fall out.
I still remember $10k+ price cuts in 2008, 09 &2010.


Really though, seeing what has happened to the price of eggs, beef or ... pencils, the amounts they HAD been raising the MSRP were not all that horrible.
But 12k for the base??? Damn!

 

[JerryC]

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

I ran a łocal weekly event for several years and our motto was...

"We're not happy until you're not happy."

 

[swooshdave]

You folks think it’s Ford being magnanimous in going after the dealers. The reality might be that Ford’s pissed they aren’t getting a piece of the action.

 

[okbob]

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

I think you can go live that dream and get a job doing that right now just about anywhere lol.

 

[Sherminiator]

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

well not sure if you ever heard of my story, but the dealership called me in December 2021 (my shit show happened this time last year) to ask me for an email that I released my Bronco sale so it wouldn't go against them.

I received my second Bronco at MSRP in May of 2022.

 

[ZipZit]

I ran a łocal weekly event for several years and our motto was...

"We're not happy until you're not happy."

Goodness. What was the event you were supporting?

 

[JerryC]

Goodness. What was the event you were supporting?

An event/competition simulating urban survival situations.

The idea was to make the problems difficult enough to test advanced level skills. IOW, it was not easy.

 

[Murfman]

I'm also a watch collector. Rolex has a 3-5 year waiting list at dealers for nearly every model of their sports watches, yet no authorized dealer can charge over retail price controlled by Rolex. Now grey market after the initial sale they have no control over. Regardless of what is happening in the market, Ford could shut this down in a heartbeat. That they don't says volumes.

A lot of aftermarket mfgrs in many industries are doing the same thing. LED lights in the aquarium industry a lot of times have a specific price they can sell at. Break that and they find out, they remove you from their authorized retailer list.

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