Question about orders and allocation.

[dcmdon]

If I order a Bronco and pick a dealer.

Does that truck count towards their allocation? I don't think so but want to confirm.

Nexts question. If the answer to above is NO. Then do lots of orders directed to that dealer increase their allocation of vehicles for inventory?

Thanks,

Don

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[da_jokker]

If I order a Bronco and pick a dealer.

Does that truck count towards their allocation? I don't think so but want to confirm.

Nexts question. If the answer to above is NO. Then do lots of orders directed to that dealer increase their allocation of vehicles for inventory?

Thanks,

Don

Yes... Dealer allocation is exactly that... Reservations that have been converted to orders.

Seconds part is yes-ish.... YES the number of actual converted order impacted that specific dealers allocation number. However that time has passed (deadline was like March 19th.

So any new orders will not change a dealers 2021 allocation quota.

 

[ZackDanger]

If I order a Bronco and pick a dealer.

Does that truck count towards their allocation? I don't think so but want to confirm.

Nexts question. If the answer to above is NO. Then do lots of orders directed to that dealer increase their allocation of vehicles for inventory?

Thanks,

Don

Allocation is for MY21… the reason it exists is because there are more orders than there is production capacity.

There is no way to increase allocation since every single MY21 Bronco built is already “spoken for” so to speak.

Your reservation counts against allocation in the sense that you’re adding to the demand, but not to the capacity.

We do not yet know how MY22 allocation will work, but back of the napkin math tells us they will have enough capacity to catch up with the backlogged orders, and common sense tells us that Ford will want to sell every single Bronco they can, so there’s no reason why someone’s order wouldn’t (eventually) be filled… irrespective of the dealer.

 

[dcmdon]

Zack,

Thanks.

But I'm still trying to understand one thing.

lets say based on sales volume or whatever metric Ford uses to set allocation a dealer is getting X number of broncos through allocation.

Now I come along and order one and somehow get a MY 21.

Will the dealer get X+1 or will they get X with X-1 now available for inventory?

Also. I think its a safe bet that MY22 trucks will also be allocated. Its just not official yet.

 

[ZackDanger]

Zack,

Thanks.

But I'm still trying to understand one thing.

lets say based on sales volume or whatever metric Ford uses to set allocation a dealer is getting X number of broncos through allocation.

Now I come along and order one and somehow get a MY 21.

Will the dealer get X+1 or will they get X with X-1 now available for inventory?

Also. I think its a safe bet that MY22 trucks will also be allocated. Its just not official yet.

They are getting that allocation amount. Full stop.

Every MY21 that gets delivered to a particular dealer’s customers will be subtracted from whatever their MY21 allocation amount is.

Because all MY21’s production is spoken for by retail orders, there’s no “+1” that could exist. There’s just no additional production capacity.

There is also no “inventory” (stock) orders being produced, so every single unit of production is going to retail orders. Every single dealer’s allocation is less than their total orders (because orders outnumber production), which means if a dealer’s allocation is X, then X number of their customer’s orders will be fulfilled…. Just depends on which X customers that is. (So in your scenario you’re one of the X)

As far as MY22 allocation… you’re right, I’m sure there will be some way Ford divides or spreads deliveries out across multiple or the full 12 months, to keep sales at a steady rate or reward dealers with additional stock units, but I don’t think things are going to be rationed the way they are for MY21.

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