Ford Changes How Broncos are Allocated - But Doesn’t Want You to Know

[toystwo]

To be fair, there is not enough information provided to divine the actual formula. Yes people keep speculating, but there is no reason to assume that the formula is anything like what these hypothetical users are stating. There are an infinite number of formulas that could meet the criteria in that memo [even ignoring the input values], but would yield vastly different results. Could it end up being the basic 6th grade formula that many seem to believe? Yes. I just don't know how anyone would reasonably conclude that this must absolutely be the case.

I know that I'm not the first to state this and I know that I'm not going to convince anyone. Maybe we can get a mathematician or a student that can better explain the errors and oversimplifications that are being made.

A consumer will never have the inputs that calculate the full answer for a given dealer. We do know the formula penalizes dealers that take reservations outsize to their market. Nothing about that is speculation.

The point is that Ford changed the production methodology. They haven’t communicated that change to their customers. The change is absolutely going to significantly impact delivery time for some of those customers.

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[toystwo]

This has to do with how Ford views dealership size. Locally, we have three different locations with the same name and ownership - Call it XYZ North, XYZ South, and XYZ East. Does Ford look at that and add sales at all three locations to determine their sales volume, or does each location get treated as an independent dealer?

Similarly, we also have one owner with two locations that have different names - call it ABC Ford and DEF Ford. Same question - Are they considered together for volume, or separate?

Your first paragraph - it is calculated individually.

Your second paragraph - only an insider would know how Ford normally does allocations for Dealer Groups. I’d guess individually. I don’t think the second half of the calculation is doable if you combine different markets.

 

[jdogi]

A consumer will never have the inputs that calculate the full answer for a given dealer. We do know the formula penalizes dealers that take reservations outsize to their market. Nothing about that is speculation.

The point is that Ford changed the production methodology. They haven’t communicated that change to their customers. The change is absolutely going to significantly impact delivery time for some of those customers.

I agree... well... with everything except "significantly". I mean, I'm sure that you are correct, but we don't really know by how much. Though it's fairly obvious that this is their intent and I'm sure they won't screw this part up since it's been done by the demand of the larger dealers.

There's just been a bunch of different people arguing different points in this thread, which is what necessitated me reading every post to figure out what was going on.

It looks like there may still be people confused about the use of the word "allocations" in the memo. They appear to be concluding that it means that dealers will be getting allocations of MY21 Broncos to sell as part of their dealer inventory/stock. Which doesn't seem to be the case. The truth is that any reserved Broncos must first be allocated to a dealer before they can then be sold to the reservation holder. The only MY21s in dealer inventory should be from reservation holders that cannot or do not complete the transaction after ordering.

Here's my TLDR - it was initially stated that only logistics, component supply, and reservation timestamp would impact when you get your Bronco. The rule change now means that you could actually miss out entirely on getting a MY21 Bronco just because of the dealership that you are using due to the allocation formula. Other people with a later timestamp might actually get a MY21 while you don't.

People are rightfully upset by this. As others have stated, it should have been obvious to Ford that their original rules were going to cause problems, but they didn't get it right on initial communications and they took a long time to clarify it. And this still has not been clearly communicated directly to the reservation holders. We know about it here because of the leaked top secret dealer memo.

I'm done with this now. I promise.

 

[OrlandoBroncos]

No, but those of us not in the first 50% of our dealer’s reservations have no idea when we will get our Bronco.

Orders in the first 50% don't know either.

Ford isn't going to deliver 50, 100, 200, or more Broncos to a dealer on Day 1 just because that is 50% of their orders.

Orders will be trickling into dealerships across the country all through the end of 2021 and beyond until all orders are filled.

 

[Pl8to]

I'm just really confused with the clickbait title of this thread that was created to stir drama. Ford updated the Q&A to reflect their changes, and yet you are saying that they aren't informing everyone. Do you want a hand delivered letter?

More things will probably change as Ford optimizes its production and logistics plans. There was very few details to begin with and how each individual read into those details is on them. Creating clickbait titles to get a popular thread that just spreads negativity about something you haven't paid for yet (a refundable $100 does not mean you have paid "good" money for a car).\

Edit: Also this change may help some people's delivery and it may hurt others. Until you know better just relax and wait.

 

[Kris87]

I have read a lot of different threads here, and have not seen the following asked/addressed. Apologies if I missed it elsewhere, but I did try to search it various different ways.

This has to do with how Ford views dealership size. Locally, we have three different locations with the same name and ownership - Call it XYZ North, XYZ South, and XYZ East. Does Ford look at that and add sales at all three locations to determine their sales volume, or does each location get treated as an independent dealer?

Similarly, we also have one owner with two locations that have different names - call it ABC Ford and DEF Ford. Same question - Are they considered together for volume, or separate?

Just trying to figure out if one of the two scenarios would be considered the bigger volume dealership, when it come to allocations.

All stores are on an individual basis. All have separate sales codes with Ford. None are grouped together.

 

[pan-y-cerveza]

Until you know better just relax and wait.

This could really just be the end of this thread. No one really knows, yet, when they will get their truck.

It could probably be the end to most of the threads on the forum.

 

[tritonx100]

No, but those of us not in the first 50% of our dealer’s reservations have no idea when we will get our Bronco.

I’m currently # 9 out of 112. Most in front of me seem to be dealership employees.

 

[Bvbronco]

They absolutely do not say the same thing.

Ford is now allocating Broncos in 2021 to dealers based 50% on reservations before Sept 18, 25% to competitive market share in the dealer area and 25% to dealers previous sales of other Ford product.

This allocation formula is new. It did not exist when the original Q&A was written. It means they are no longer fulfilling on rough reservation order.

Edit - I summarized that incorrectly from memory. The last two categories are a combined 50% they don’t actually say the are equal (25%) weight. See the dealer communication now attached to the first post.

I'm sorry but I have to ask this... Do YOU work for Ford. Is this info coming directly from Ford ?

 

[Gamecock]

I'm sorry but I have to ask this... Do YOU work for Ford. Is this info coming directly Ford ?

It's in a memo sent to dealers. It's been posted many, many times.

 

[Appalachia_Ewok]

This is just some deep state pizza gate conspiracy theory nonsense. You're just reading really into the words and trying to figure out a hidden meaning that's not there. If they were trying to be nefarious they'd just straight up say one thing and then take it back later, they are under no obligation otherwise.

They aren't going to point back to some Q&A blog post they made and pull a "gotcha!" based on the specificity of the wording because they don't have to; it's not a legal contract in any way.

All they're saying is factories will produce their vehicles in batches, like every car, people in Hawaii will have a later delivery date than people in Michigan, because duh, and they're going to *try* some semblance of order based on reservation. Say in the first 10,000 vehicles 45% are big bends, they'll probably start with a batch of big bends then go down the line in a vaguely numerical order.

In the grand scheme of things you're probably gonna be waiting awhile regardless of when and what you reserved, that's just the nature of a 100% new vehicle rollout, reservations far exceeding expectations, and doing it all in a pandemic. You just gotta get used to it. I fully expect not to see mine until mid 2022 anyway, why complain about it? Do you want it because you want it or do you want it to show up the Jone's next door in some suburban ****ing contest?

 

[flip]

#2 has nothing to do with when anyone is going to get their Bronco. This ONLY has to do with how dealer stock will be calculated once they are caught up with the reservations. They look at regional, market, zone and dealer sales then use competing model registrations into the formula. If 90% of my sales are F150's and I sell a f-ton of them in my zone, my dealer allocation is probably going to be more than other dealers around me. Occasionally they will beg us to take some extra units but normally we get what we get.

My area has a high number of Jeep registrations so check a box for that. I also have to sell a bunch of both Broncos and convert as many of those registrations to sales, check another box. Basically, the guys that are getting a ton of reservations are most likely going to NOT bet getting loaded up when there is allocation in '22. Allocation sucks when you can't get what you need so you dealer trade. When done correctly, the dealers that are moving units get units. Guys that have units growing weeds under them are not rewarded with fresh inventory.

To finish, get your vehicle spec'd out, get it to your dealer and get the order in early. They can only make so many a day and will probably build based on commodities availability. Order an odd ball and you might have to wait, everyone orders the same thing and commodities are tight, you might have to wait. Pray to God Job One goes good, we get the OK to buy and it doesn't launch like the '20 Explorer. Hissy fitting isn't going to get this thing built any faster.

Residency? Lower 49, Canada, Hawaii, Alaska? Ford does not care which dealer you buy from as long as you buy something from Ford.

 

[toystwo]

Reading comprehension in this thread is abysmal.

 

[Pl8to]

I guess not all of us are as well versed in reading tea leaves.

 

[Appalachia_Ewok]

It's not reading comprehension people just don't agree with your interpretation. Kind of hard to keep up with all the mental gymnastics going on.

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