Ford to Dealers: Lightning Customers Off-Limits, Free Rein with Broncno Customers

[North7]

So Ford has laid down the law to the dealers regarding the upcoming Lightning Reservations, Orders and Sales, while ignoring the same practices dealers are doing to Bronco customers.

Highlights from the Article:

"It has come to our attention that a limited number of dealerships are interacting with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation."

"The Dealer shall avoid in every way any 'bait,' deceptive, misleading, confusing or illegal advertising or business practices,"

"The all-new F-150 Lightning represents a leap ahead in innovation for Ford trucks and is critical to the Ford brand and our dealerships as we move into a segment we’ve never competed (in)," Deep said. "We are competing with others who have a direct model and we need to be very mindful of how customers perceive Ford and our dealer network. How our dealers treat customers has major implications not only on an individual dealer but the reputation of Ford and our dealers."

So the message to dealers for ICE sales, including the Bronco, you may proceed to sell with your traditional, methods, taking advantage of the customer any way you care to, aka, No Rules, Free Rein, do what you want!

Further, the article goes on to say Ford is not happy with customers reselling their Bronco's for a $10,000 profit (but it's okay for dealer's to steal customer orders and/or charge $20K - $60K ADM).

@Ford Motor Company would you care to explain why these limitations were not extended to the dealers for Bronco sales?

Full Article (link here):

Ford threatens dealers: We won't send you F-150 Lightnings if you break sales rules
Phoebe Wall Howard, Detroit Free Press
Sat, January 8, 2022

Ford Motor Co., concerned about its reputation and customer complaints related to the upcoming launch of the F-150 Lightning, is warning dealers not to upsell reservations for the popular EV truck and also wants customers to sign a contract preventing them from reselling it within a year, according to a letter from the automaker to its dealers.

The warning letter, dated Friday and posted online by the F150gen14.com forum, is addressed to all dealer principals, the general manager and sales managers.

Written by Andrew Frick, Ford vice president of U.S. and Canada sales, the letter began: "It has come to our attention that a limited number of dealerships are interacting with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation."

Examples of these negative interactions include demanding that customers who are already on the reservation list for the 2022 model year F-150 Lightning make additional deposits or payments, the letter said.

"These actions are perceived as threatening customers by withholding their opportunity to convert reservations to orders," the letter said. "This behavior is not allowable ..."

Ford then cites dealer sales and service contract language that requires dealers to conduct their operations in a manner that reflects favorably on dealers, the company and its products.

"The Dealer shall avoid in every way any 'bait,' deceptive, misleading, confusing or illegal advertising or business practices," the letter said.

"If it is determined that your dealership is engaging in such practices, Ford Motor Company reserves the right to redirect that dealerships allocation of the F-150 Lightning" for all of model year 2022, the letter said.

Blocking rapid resale

To help protect the interests of the dealer, however, Ford did write in the letter that it supports modifying the traditional vehicle purchase contract.

In order to prevent people from buying and immediately reselling the pickup truck for a profit, Ford is "offering support for a No-Sale Provision to be signed by the customer at the time of purchase. Dealers may add this language to existing closing forms or create a new standalone document."

Ford provided language that explicitly requires the buyer to agree not to sell, offer to sell or transfer any ownership interest in the Lightning within one year of purchase. If the buyer sells the vehicle within one year, they may face court action that includes blocking transfer of the car title.

Why now?

This letter was inspired by a discussion Frick had with members of the Ford dealer network on Thursday, Ford spokesperson Said Deep said.

The Free Press confirmed with the Ford dealer community that the letter was sent and received and that a webinar was held with Frick.

However, the Frick call was primarily intended to review year-end sales and what to expect in coming months with the Lightning order bank opening this week, Deep said.

The letter that went out captures the spirit and discussion, Deep said.

He told the Free Press on Friday that customer care is especially important now.

"The all-new F-150 Lightning represents a leap ahead in innovation for Ford trucks and is critical to the Ford brand and our dealerships as we move into a segment we’ve never competed (in)," Deep said. "We are competing with others who have a direct model and we need to be very mindful of how customers perceive Ford and our dealer network. How our dealers treat customers has major implications not only on an individual dealer but the reputation of Ford and our dealers."

Tim Hovick, chairman of the Ford National Dealer Council that serves as an advisory group on strategy and developing issues within Ford, said dealers are pleased.

“The Dealer Council worked with Ford Motor Company and we feel very positive about the letter," he said Friday. "I don't think the letter makes us look bad, at all. We’re coming with a new product, a new way to come to market with that product and it's a hugely anticipated launch. I view the letter more as making sure we’re all on the same page."

Hovick, who also owns San Tan Ford in Gilbert, Arizona, said, "We’re really excited as we get close to launching the Lightning."

The truck is scheduled to be delivered to dealerships in the spring.

Overwhelming demand

Ford received so many reservations for the all-electric pickup that the company had to shut down the reservation process in December.

The company just this week opened up the opportunity for customers to convert their $100 reservations orders to actual purchases. Ford is working through the list in the order reservations were placed since the reveal in May.

With some 200,000 reservations, Ford also announced this week a plan to ramp up production. And the stock market responded favorably. The cost of the pickup ranges from $39,974 to $92,000 or so, depending on specialty items.

Ford has had an issue with buyers snapping up the popular Ford Bronco and reselling it at profits of more than $10,000.

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[bigblueboing]

So basically don’t do what you have been doing for the last 100 years bcuz Tesla. Yea 99.9% of dealers are going to ignore that. !

 

[Jhuff]

The language applies to the dealers though, not the vehicles specifically. The article may be specific to the lightning, but I have no doubt that the Bronco ADMs (and bad publicity) pushed Ford in this direction.

I also suspect that Ford has actually been using this clause to help Bronco owners despite no specific press release. We have seen multiple instances of Bronco customers avoiding ADM by contacting Levine and I would bet this clause is his leverage.

 

[Newbie]

So the message to dealers for ICE sales, including the Bronco, you may proceed to sell with your traditional, methods, taking advantage of the customer any way you care to, aka, No Rules, Free Rein, do what you want!

Further, the article goes on to say Ford is not happy with customers reselling their Bronco's for a $10,000 profit (but it's okay for dealer's to steal customer orders and/or charge $20K - $60K ADM).

@Ford Motor Company would you care to explain why these limitations were not extended to the dealers for Bronco sales?

 

[MayhemMike]

Ford is upset with Bronco buyers flipping their Broncos for cash? Easy fix. Build the damn things. Fulfill your promises and obligations to reservation and order holders and these flips will vanish. I can’t begin to conceive how a major corporation could screw up such a significant event as the reintroduction of this Bronco.

 

[mdahan]

I have a preorder for one currently. I may not end up following through due to this crap show. I won't buy another ford after this though.

 

[North7]

The language applies to the dealers though, not the vehicles specifically. The article may be specific to the lightning, but I have no doubt that the Bronco ADMs (and bad publicity) pushed Ford in this direction.

I also suspect that Ford has actually been using this clause to help Bronco owners despite no specific press release. We have seen multiple instances of Bronco customers avoiding ADM by contacting Levine and I would bet this clause is his leverage.

I hope your right, however, " Ford spokesperson Said Deep" specifically discussed the EV segment.

and is critical to the Ford brand and our dealerships as we move into a segment we’ve never competed (in)," Deep said. "We are competing with others who have a direct model (Tesla)

 

[Bonita Maria]

I cannot fathom EVER agreeing to a clause limiting if/when I can sell something I'M making payments on. What if I lose my job? What if I become a monk? My wife leaves me and I have to make life changes, whatever.

I'd like more info on the language in the suggested contract. I am a lightning reservation holder, but my enthusiasm was significantly diminished by the XLT with extended battery ringing in at $72k. That's totally bonkers.

 

[The_Viking]

Im not in the legal field, but it seems to me that this memo would be very good ammo against any dealer trying to use the ADM to steal a Bronco from a customer for resale by the dealer now. A lawyer with that memo in his possession could file an injunction to stop a dealer sale to another party, and the dealer would have to explain to a judge why the two vehicles are being sold differently, and why a customer would be treated differently for the same type of purchase since the reservation structure is the same.

 

[Berwolf]

This doesn't seem to be much different than what they said for the Bronco at the beginning. Ford corporate doesn't want dealership's charging any markup for reservations. It doesn't look good for Ford and honestly I will never reserve a vehicle through an OEM who doesn't have direct sales. At the end of the day a dealership is independent from the OEM and can charge whatever they want.

I don't remember the details but there were allocation threats from Ford corporate at the beginning of the bronco launch but then dealers pushed back and ford gave in. I wouldn't be surprised to see this happen again with the lightning.

The best way I see to resolve this is for Ford motor company to work on behalf of the customer and make it so the customer and dealer jointly have to sign a purchase agreement up front.

 

[contented]

I may not end up following through due to this crap show. I won't buy another ford after this though.

I agree. It just leaves a bad taste. If Mrs Contented didn't want a Bronco, I wouldn't be here. But we're all here because they are selling something we want. Someone posted this analogy - how many of us would go to a restaurant, wait for hours for our food, and then be overcharged for it? I wouldn't, but yet here I am waiting in this line w/ everyone else happy to pay MSRP.

After buying cars for over fifty years, I've become extraordinarily cynical about the process, irregardless of brand, from the sale through service. Every now and then one runs across a a standup salesperson or service manager, but its rare.

I try not to dwell on the kind of info presented in OP. It's just too depressing.

 

[nomnom]

I think 90% of dealers out there have supported bronco msrp with reservation. We’re here in the forums where negative are often highlighted.
“We’re all getting screwed!!!” Not the case. A few yes and as a forum we’ve helped some, but the vast majority have had none or very minimal/acceptable markup (subjective).

 

[da_jokker]

This is laughable on so many levels. Ford has been telling us all this time that they have very little say over dealers. They laid down some "rules" When the Bronco came out and then back pedaled on dang near every single one of those.

I'm not a lawyer, but if you read between the lines all it says is you can't be sneaky. It doesn't say you can't charge ADM. You just have to be upfront about it which many dealers have been.

I don't expect a lot to change.

 

[DDGator]

The agreement not to resell for a year would really irk me. This isn't some rare supercar. It's a Ford truck.

On the other hand, I can't imagine they would likely ever enforce this. What are they going to do -- monitor social media and auto sale sites for offending sales? Bring lawsuits against their customers over someone reselling for $10k profit? Seems unlikely.

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