Hypothetical allocation scenario question

[Garemlin]

So we all know at this point that one of the biggest determining factors of getting scheduled, outside of constraint items, is dealer allocations. This has me wondering about this scenario. Again this is purely hypothetical and probably unrealistic anyway.

Fast forward say six to nine months. Production has really ramped up. Ford is finally starting to get caught up on outstanding reservations and orders. You have an order at a dealer who has many outstanding orders, but ended up getting a low number of allocations. They have used up all of their allocations for the year. Ford is scanning orders for buildable configurations. They have ran out of buildable orders at dealers that still have remaining allocations. But there are plenty of buildable orders at dealers who are out of allocations. So what happens now??? Does Ford skip over the buildable orders just because the dealer is out of allocations for the year??? Do they just start building random builds to send to dealers for stock units??? Or do they throw the allocation system to the side and continue pulling buildable orders even though the dealer has no remaining allocations???

Thoughts???

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[Bt_ostate]

So we all know at this point that one of the biggest determining factors of getting scheduled, outside of constraint items, is dealer allocations. This has me wondering about this scenario. Again this is purely hypothetical and probably unrealistic anyway.

Fast forward say six to nine months. Production has really ramped up. Ford is finally starting to get caught up on outstanding reservations and orders. You have an order at a dealer who has many outstanding orders, but ended up getting a low number of allocations. They have used up all of their allocations for the year. Ford is scanning orders for buildable configurations. They have ran out of buildable orders at dealers that still have remaining allocations. But there are plenty of buildable orders at dealers who are out of allocations. So what happens now??? Does Ford skip over the buildable orders just because the dealer is out of allocations for the year??? Do they just start building random builds to send to dealers for stock units??? Or do they throw the allocation system to the side and continue pulling buildable orders even though the dealer has no remaining allocations???

Thoughts???

Would suspect that those with allocation would utilize their commodity reports and create buildable units for stock or to try to trade current reservation holders into. Allocation has and will always play into production and deliveries unless Ford and other manufacturers completely change up the way things are done. But that would also involve the unions and dealers agreeing to a change in things, so I don't see it happening anytime soon.

If you ordered with a dealer that took on way more orders than their allocation allows for, its best to move to another dealer or you're going to have to just ride things out patiently. The dealers taking on all of these orders take some blame in this as stockpiling orders was never going to turn out good for the consumer.

 

[2050Broncoorsomething]

I think itll go by priority code then. So the retail unit first, then stock units. But who knows really? Ford is like a magic eight ball. Sometimes you get a build and sometimes you get try again.

 

[Heffe66413]

So we all know at this point that one of the biggest determining factors of getting scheduled, outside of constraint items, is dealer allocations. This has me wondering about this scenario. Again this is purely hypothetical and probably unrealistic anyway.

Fast forward say six to nine months. Production has really ramped up. Ford is finally starting to get caught up on outstanding reservations and orders. You have an order at a dealer who has many outstanding orders, but ended up getting a low number of allocations. They have used up all of their allocations for the year. Ford is scanning orders for buildable configurations. They have ran out of buildable orders at dealers that still have remaining allocations. But there are plenty of buildable orders at dealers who are out of allocations. So what happens now??? Does Ford skip over the buildable orders just because the dealer is out of allocations for the year??? Do they just start building random builds to send to dealers for stock units??? Or do they throw the allocation system to the side and continue pulling buildable orders even though the dealer has no remaining allocations???

Thoughts???

Great question for Ford to answer

 

[ocbucks1]

So we all know at this point that one of the biggest determining factors of getting scheduled, outside of constraint items, is dealer allocations. This has me wondering about this scenario. Again this is purely hypothetical and probably unrealistic anyway.

Fast forward say six to nine months. Production has really ramped up. Ford is finally starting to get caught up on outstanding reservations and orders. You have an order at a dealer who has many outstanding orders, but ended up getting a low number of allocations. They have used up all of their allocations for the year. Ford is scanning orders for buildable configurations. They have ran out of buildable orders at dealers that still have remaining allocations. But there are plenty of buildable orders at dealers who are out of allocations. So what happens now??? Does Ford skip over the buildable orders just because the dealer is out of allocations for the year??? Do they just start building random builds to send to dealers for stock units??? Or do they throw the allocation system to the side and continue pulling buildable orders even though the dealer has no remaining allocations???

Thoughts???

Good thoughts. I don’t believe dealers really know their allocations. It’s Ford’s number. Some say there is a formula and that may be a guide that dealers use to estimate. But it’s a moving target that Ford controls. So some of these scenarios you mention are impossible when the number can change. This is why Ford let us down by not being transparent about this process. Maybe it’s somewhat dealer politics where games are played. I don’t know that but it just seems like that because it’s hidden.

 

[MOBRONCO]

Good thoughts. I don’t believe dealers really know their allocations. It’s Ford’s number. Some say there is a formula and that may be a guide that dealers use to estimate. But it’s a moving target that Ford controls. So some of these scenarios you mention are impossible when the number can change. This is why Ford let us down by not being transparent about this process. Maybe it’s somewhat dealer politics where games are played. I don’t know that but it just seems like that because it’s hidden.

Dealers know their allocations. Doesn’t mean they can’t change, but they are known. To answer the OP’s question, I would expect Ford to ship stock builds over reservations like they already have been doing.

 

[Naters317]

Good thoughts. I don’t believe dealers really know their allocations. It’s Ford’s number. Some say there is a formula and that may be a guide that dealers use to estimate. But it’s a moving target that Ford controls. So some of these scenarios you mention are impossible when the number can change. This is why Ford let us down by not being transparent about this process. Maybe it’s somewhat dealer politics where games are played. I don’t know that but it just seems like that because it’s hidden.

Dealers know exactly what they are allocated each month. I can go into WBDO and it will show me how many of each vehicle we have left to schedule for the month, and if they don't schedule this month it will roll into next month. The biggest downside is that we can't choose what we're allocated, at the end of each month we have a window where Ford tells us what we're given for allocation on each model. We're allowed to request supplemental units but that rarely goes anywhere especially in the current market

 

[thatspecialbeat]

Ford has been clear that they would have dealers submit orders for dealer stock in this scenario.

The reservation date only matters within the line at your dealership.

 

[shieldsy]

Find the solution that will benefit the large Ford dealerships the most, particularly those dealerships on the advisory council and you will have the correct answer.

Forget what Ford says and promises. If Ford ever finds themselves in a situation where things are not tilted to these large dealerships, they will just change the rules of the game at half-time.

 

[Tonka1]

I don't see where this scenario plays out anytime in the next 3 years. Allocations will continue to be a key factor and believe that people will be able to walk into some dealerships, order and have vehicles delivered in months while many people with 2020 reservations and identical builds will be waiting years.

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