Ford Announces Separate "Model e" EV Division and "Ford Blue" Internal Combustion Division

[North7]

I agree whole heartedly that the practice is not sustainable long term. I think most of the time you see outrageous ADM is when there is a period of time when supply and demand are way out of normal ranges. My point is only that the OEM gets "shafted" because they are the ones who provide the incentive when the tables get turned, but when you have the short periods of hyper demand, they get practically nothing. That effects the bottom line. This period of time may not last long but when you apply it to every dealer for each applicable model for its period of high demand, that certainly would add up. As much as everyone would like to see no ADM (or OEM equivalent) the OEM should operate right at the intersection of selling vehicles literally as fast as you can make them and selling cars for absolutely as much as allows that to happen. Right now OEMs have to share or surrender that second lever to the dealer.

I understand the sentiment and reasons, but it's a double edge sword, if Ford tries that they will greatly reduce the enthusiasm and demand for the launch of new vehicles. As an example, look at the forum dealers that offered wait lists to forum members for the Bronco Raptor, with a sliding scale of ADM to get yours sooner, I'm not sure how many people raised their hands to that offer. Regardless, Ford has a plan, but wallstreet is still not convinced.

Wall Street praises Ford’s EV plans but questions its sales and profit margin targets

Morgan Stanley expects Ford to produce 560,000 EV units by 2026 and estimates the company’s adjusted operating profit margin on EVs to be only 4% by 2026, not 10%.

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[North7]

Ford actually started doing this in 2017 with Ford GT sales and will close out this model's production run this year using it. You place an order directly through Ford and final paperwork, payment, and delivery was handled by dealership of the buyer's choice. No ADMs allowed that I'm aware off. Vehicle cost was MSRP plus TTL.

My experience was it worked out very well!

Many stories about GT's with ADM since it is a limited production model, unlike the mass produced Bronco.

 

[thenewjs]

Ford started something like this once and got bulldozed by the Ford Dealer's Council, it quickly failed.


Perhaps you've heard of the product they tried it on, it was called the Bronco.

Many states already have carve out laws for EV companies. Model E is FORDs new EV company. It wont happen nationwide overnight, but States with these Carve out laws will see Ford selling direct to consumer first.

 

[drew707]

Ford started something like this once and got bulldozed by the Ford Dealer's Council, it quickly failed.


Perhaps you've heard of the product they tried it on, it was called the Bronco.

Ford is selling the third gen Raptor exclusively direct to consumers in China.

ADM has created this and is the backbone for why Ford is trying to offer the option. Dealers have burned Fords repeat and new intake customer appeal over the last decade. It’s been slowly growing to be a massive pain in their customer satisfaction.

 

[North7]

Ford is selling the third gen Raptor exclusively direct to consumers in China.

ADM has created this and is the backbone for why Ford is trying to offer the option. Dealers have burned Fords repeat and new intake customer appeal over the last decade. It’s been slowly growing to be a massive pain in their customer satisfaction.

Yet there are so many strings Ford could pull to reign in the dealers. They have no backbone to fix the problem.

 

[drew707]

Yet there are so many strings Ford could pull to reign in the dealers. They have no backbone to fix the problem.

Not to bite the hand that feeds but Ford doesn't entirely motivate dealers to be supportive either. A lot of cherry picking, favoritism and pay-to-win showroom experiences

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