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

bronc'o

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Point #2, 3rd Bullet is as follows:

“As a reminder, converted reservations as of January 31, 2021 will account for 50% of the dealer allocation formula, with the remaining 50% weight on competitive registrations and your Ford retail sales as a percentage of the nation.“

Let’s break this down.

”50% of the dealer allocation formula” means that your total number of reservations accounts for half of the weight in the formula. The remaining half is a based on competing registrations and your retail sales percentage. There is nothing in this description that tells us anything about what the actual formula is.

Now, I’m not mathematician, but for all we know the formula is:

Total FY21 Allocations = Converted reservations as of January 31, 2020 + (0.5 x (Total Competitive Registrations x Retail Sales %))

So if I have 100 converted reservations, and there are 2000 competitive registrations in my area, but I only sell 1% of all Fords nationally, then the formula looks like this:

100 + (0.5 x (2000 x 0.01))

Meaning I will actually receive 110 Broncos.... which leaves me 10 extra Broncos for the lot...

Do you see what I mean?

Anyone who claims they can read Point #2, 3rd Bullet, and come to a conclusion about how the formula works, is making some assumptions, or has information not included in the memo.
Thank you.
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toystwo

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Been away for a couple of hours and wow....

Catching up real quick but "residency" is referring to where the dealer is located, not the buyer, right?
Thats my interpretation but the point is you can’t understand how Broncos will be produced from the QA.

You need to read that dealer allocation memo and realize if you’re not a very early reservation, you may not receive your Bronco in reservation order. Dealer selection matters for more than price.
 

ZackDanger

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[...]
  • 50% of reservations will be fulfilled based on a calculation using the dealers number of bronco reservations prior to Sep 18th that are converted to orders
  • 25% of reservations will be fulfilled based on a calculation using the dealers sales volume
  • 25% of the reservations will be fulfilled based on a calculation using the sales of jeeps/4Runners in market

[...]
Alright, well... look.... I’m getting too old for this, and I’ll stop after this so you can have the last word in your thread.... and I promise I’m not trying to be difficult... but I just want to point out, that the quote/formula example above Isn’t actually what the language in the memo says.

Despite how it may sound, I’m not even arguing that people shouldn’t expect to wait for their Bronco, or that some dealers may be more advantageous than others... just that y’all keep misinterpreting what the memo says.

“As a reminder, converted reservations as of January 31, 2021 will account for 50% of the dealer allocation formula, with the remaining 50% weight on competitive registrations and your Ford retail sales as a percentage of the nation.“

Words have meanings. The memo describes what the formula is comprised of and how those components are weighted... it says nothing about what that formula actually is.
 

Brocked

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Okay dude, there are more reservations that will be converted to orders than there will be MY2021 Broncos. Here is an example that someone else did, which may help you understand:
  • 50% of reservations will be fulfilled based on a calculation using the dealers number of bronco reservations prior to Sep 18th that are converted to orders
  • 25% of reservations will be fulfilled based on a calculation using the dealers sales volume
  • 25% of the reservations will be fulfilled based on a calculation using the sales of jeeps/4Runners in market

Example
Dealer A is high volume and in huge jeep market
Dealer B is a low volume dealer

Given a dealer A gets 100 reservations (converted to orders) and Dealer B also gets 100. They are thus the same in that part of the formula, and are allocated 50 each for that. The rest is not the same:

- Dealer A may be able to get 50 + 22 + 20 , ie be allocated 92 broncos from the production line
- Dealer B may be able to get 50 + 2 + 1 , ie be allocated 53 broncos from the production line

Dealer A got the extra 22+20 because they did well in part 2 and 3 of the formula. Dealer B only got 3 extra, because they are rural and didn't score well at all in that part of the formula. Get it now?

Now Dealer A fills 92% of their orders; Dealer B fills 53%.
I agree, small volume small market dealers will proportionately not get near as many because they will always have 50% of the formula against them. That’s why I’m not going to a small dealer no matter how much better the deal is.
 

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I agree, small volume small market dealers will proportionately not get near as many because they will always have 50% of the formula against them. That’s why I’m not going to a small dealer no matter how much better the deal is.
I think this is why Ford is allowing you to change your dealer up until the beginning of the year, they’ll probably recommend a dealership that still has open allocations.

Sucks for people outside of the southwest, I’m sure they are going to be all over Phoenix for the first allocations lol!
 

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toystwo

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Despite how it may sound, I’m not even arguing that people shouldn’t expect to wait for their Bronco, or that some dealers may be more advantageous than others... just that y’all keep misinterpreting what the memo says.
What your arguing changes with each of your posts if you go back though them. Your first argument was this shouldn‘t be a new thread.

Based on the posts in here, I’d say a lot of people don’t understand how Ford’s changes impact when they may receive their Bronco (not to mention non forum users). Why would they? Ford hasn’t explained it to any of their reservation holders.

My original post that started this thread says Ford changed how Broncos will be produced.

Then they changed their QA about how Broncos are produced but they didn’t tell you about the change they made (at least in a way anyone could understand by reading the QA). Those are just facts.
 
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Bronc-O

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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.
It seems they are after certain dealers again. Ford told the Texas buyers group to stop taking reservations saying something about allocation, according to the organizers of that group.
 
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You guys do realize that Granger is also a Jeep dealer, right?
I do.

That isn’t going to do anything more for them than if someone else owned that Jeep Franchise under the allocation formula.

This thread isn’t about a specific dealer. These changes impact every dealer for good or bad.
 

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Edit:

To add the new dealer allocation formula. This is what changes how Bronco orders are fullfilled and some people are going to be completely screwed by this and not know it’s coming (as evidenced by the discussion in this thread let alone customers who don’t frequent forums).

1603754320081.jpeg
This is exactly how my dealer's GM explained the allocation last week. He got called by Detroit due to his reservations approaching an area where it was going to effect his dealerships allocation...
 

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It seems they are after certain dealers again. Ford told the Texas buyers group to stop taking reservations saying something about allocation, according to the organizers of that group.
True. I spoke to the GM last week and this formula is exactly what he said.
 

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It seems they are after certain dealers again. Ford told the Texas buyers group to stop taking reservations saying something about allocation, according to the organizers of that group.
https://www.bronco6g.com/forum/threads/texas-buyers-group-the-offer-the-dealership-–-finally.6818/

Now that I wasn’t aware of and just now saw the thread. That type of direct action is worrisome, no doubt. Come on Ford, don’t make me get another boring yet reliable Toyota, I wanted to actually feel SOMETHING when I drove my next vehicle.
 

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My thinking is this could hurt people with reservations at metro dealers. Based on jeep sells by county, if you have a lot of Ford dealerships, you could have low sales per Jeeps sold. And with 50% reservations, better hope they have a lot to boost them up. Some rural dealers with lots of reservations and very few dealers in the county might just benefit...
 

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I put 100 dollars down, and Ford said I would get my order in approximately the order of my reservation. That hasn't changed. Even if they change the formula 10 times that statement will most likely hold true.

People confuse transparency with thinking they will be told every detail.
Ford also said this.


DISCLAIMER:

*By completing the Reservation Process, you are not ordering or purchasing a vehicle. Participation in the Program does not guarantee you vehicle delivery. Your Reservation does not guarantee a set price for the Vehicle.
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