Ford CEO Farley Says Dealers Who Price Gouge Could Get Fewer Vehicle Allocations

[Compta38]

Customers should agree to keep the vehicle for at least 2 years.

It's nobodies business what I do with my property after I've bought it.

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[Easy-v]

The linked article is hidden behind a paywall.

Do you or anyone else have any source for this news, from a credible site?

https://services.choruscall.com/links/f220203qy3oyHse.html

This is the broadcast of the call - the questions start at about 30 minute mark. You have to provide name/company/email address to access it.

 

[Wanted33]

Talk is cheap, will Ford take action, highly doubtful.

Unless they bring out the big guns, that will really scare the dealers.

As it's taken Farley so long to find this out I highly doubt there will be any follow through. He could have just visited the forum one time at the end of last year, and found out everything he needed to know if he was really interested. And least we forget the many times Ford said there was nothing they could do about dealers charging stupid high ADMs. Screw Farley, screw Ford, I just want the Bronco I was promised when I reserved back in the day.

Disclaimer: Some would say I'm a bit biased against Ford right now.

 

[North7]

I listened to the call too - he said "future allocation will be impacted"...it's not clear if he was only addressing profiteering on the EV's or ICE+EV's.

Future promises are the easiest BS for corporate spin. It will never happen, then when someone asks Farley why not, he will spin some more and say the dealers got the message or they are handling it on a case by case basis.

 

[Bob Blaylock]

Customers should agree to keep the vehicle for at least 2 years.

I disagree.

I think the First Sale doctrine should absolutely apply to any purchase. Once the seller has the money from the buyer, and the buyer has the product, the product is the buyer's to do with as he wishes, and the seller has no more claim on it, and no right to tell the buyer what he may or may not do with it.


That said, I have no intention, once I get my Bronco of selling it, even if someone offers me a lot more for it than what it cost me. I didn't order it, I'm not waiting months for it, and I'm not going to pay a big chunk of my inheritance for it; for any profit that I could potentially make by selling it. I've ordered it, am waiting for it, and will pay for it, because I want it for myself.

And it does irk me that people who are willing to flip their Broncos for a profit are getting theirs, while there are any of us like me who want our Broncos for ourselves who are still waiting for ours.

 

[Bob Blaylock]

The linked article is hidden behind a paywall.

Do you or anyone else have any source for this news, from a credible site?

Here's the story from a credible source, that doesn't hide its content behind a paywall or a “disable your ad-blocker” wall.

https://www.motortrend.com/news/ford-f-150-lightning-ev-dealership-price-gouging/

 

[Tom_in_Chicago]

So, Fox Ford in Chicago called me today, specifically Lavern Canteen. He offered me a 2 dr Bronco with "only a $20K mark up." Is this "taking advantage of" or just offering me a good deal? Do they get their allocations cut? I'll bet not.

Can someone please add Ford tags to this, I can't figure it out.

 

[North7]

So, Fox Ford in Chicago called me today, specifically Lavern Canteen. He offered me a 2 dr Bronco with "only a $20K mark up." Is this "taking advantage of" or just offering me a good deal? Do they get their allocations cut? I'll bet not.

Can someone please add Ford tags to this, I can't figure it out.

@Ford Motor Company will not lift a finger on ADM issues and neither will Jim Farley, he is just spinning a story for Wall Street.

 

[Razorbak86]

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

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.

 

[North7]

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.

Thank you for the post.

"Quick action by our team" yeah, right, like the ADM Bronco dealers got the memo, just more Ford PR.

 

[66GT]

https://www.bloomberg.com/news/arti...ys-dealers-who-gouge-could-get-fewer-vehicles


Some car dealers are taking advantage of lean inventories as a result of the semiconductor shortage by charging well above sticker price -- and Ford Motor Co.’s chief executive officer isn’t happy about it.

“We have very good intelligence of who they are and their future allocation of product will be directly impacted because of that policy,” CEO Jim Farley said Thursday on a conference call with analysts. “We have about 10% of our dealers last year in the supply constrained environment that we’re in charging above MSRP to the best of our knowledge,” he said, referring to the manufacturer’s suggested retail price.

 

[1975U15]

Thank you for the post.

"Quick action by our team" yeah, right, like the ADM Bronco dealers got the memo, just more Ford PR.

Hell hath no fury like a future EV owner who’s charged ADM.

Guessing the reporting will dwarf Bronco ADM stories. Predictable.

 

[Kenny H]

I like this.

Ford F -4.38% Motor Co. and General Motors Co. GM -5.34% are clamping down on dealerships that are trying to charge more than the sticker price, a tactic that has proliferated amid the car shortage.

Ford Chief Executive Jim Farley said Thursday that dealers who engage in this practice will face consequences, including losing supplies of future models. Auto makers set a manufacturer’s suggested retail price, or MSRP, when they ship cars to dealerships. Dealers aren’t required to adhere to them, but under business norms that has been the general practice and expectation.

https://www.wsj.com/articles/ford-g...cker-price-and-face-repercussions-11644323580

 

[LazygonInfinity]

All I can say about this mess is that once the chip shortage/production issues resolve, let's do our part to reward the good dealers with future business and ensure not to do business with predatory dealers. Those predatory dealers have relied on the loyalty of Ford buyers for decades to survive when products were plentiful and when Ford wasn't producing the highest caliber vehicles on the market. It pisses me off that the second the pendulum swings a bit, they punish their customers with absurd mark-ups and lies.

From my personal experience, I've been looking for a Bronco for quite some time while nothing happens with my order. I've talked to some fantastic dealers who were willing to sell mannequins at MSRP (not close to the spec I want and ordered, so I passed) and I've seen others mark-up Broncos by nearly 100%. I am aware of at least one sitting on a dealer lot right now with an MSRP of 45k that they are trying to sell for 70k. I've seen other dealers post "MSRP" prices and next to it, a "dealer special price" that is about 2k lower than the "MSRP", but are significantly higher than the actual MSRP on the window sticker because I took the time to look up the real numbers. Just disgusting behavior.

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