why are we blaming Ford and not the dealers?

cowman

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How many?
You will have to contact Ford for the exact number... was told over 2500 by one dealer in Dallas... true or not.... see no reason for them to lie...
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gammaguybronco

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Might want to reread this again... ....

Sep 25, 2020
Ford details Bronco allocation process to dealers; top performers could get 'hundreds'

Per Autonews

DETROIT — Ford Motor Co. executives are hopeful that dealers will convert an "incredibly high" percentage of Bronco SUV reservations into actual sales and believe they'll be filling those orders for more than a year.

The automaker on Friday reached out to its U.S. retail network in a video to describe the allocation process for one of the most highly-anticipated vehicle launches in its recent history. Ford began building Bronco pre-production models at its Michigan Assembly Plant this week and plans to deliver the first off-roaders starting in late spring of next year.

Ford earlier this week said the Bronco build-and-price site will go live in October. Beginning in November and continuing through January, dealers will work with customers to convert their $100 refundable deposit into an actual sale, confirming accessory purchases, final prices and financing options. Ford expects to offer customers an approximate timeframe on their vehicle's build date starting in February.

Mark LaNeve, Ford's vice president of U.S. marketing, sales and service, told Automotive News he initially expects "over 75 percent" of the roughly 165,000 refundable deposits will be converted to sales, although that conversion rate is likely to fall for customers who have to wait longer for their Bronco. He said Ford will "definitely" be filling reservations into 2022.

Dealer allocation will depend on a retailer's market size, previous SUV sales performance, the number of reservations tied to their store and competitive off-road registrations in their market, LaNeve said.

"We're really trying to have an equitable and fair process for allocating to dealers," LaNeve said. "We have dealers that will get hundreds of Broncos allocated to them in 2021 and you go from there. Bigger dealers with lots of reservations will generate the most allocation, but we're going to try and take care of every dealer who has reservations."

He declined to offer any production estimates, but before the coronavirus pandemic Ford officials indicated they expect sales of the Bronco family of vehicles — which will include two- and four-door versions of the Bronco as well as the Bronco Sport — will hit at least 200,000 in 2021.

LaNeve declined to say how many Bronco Sport reservations Ford has recorded, noting it was "a lot less than the two-door and four-door but still significant." He said he Bronco Sport will go on sale about the same time as the redesigned F-150, which will hit showrooms in November.

LaNeve said dealers are not required to invest in facility upgrades to sell the Bronco, although they must undergo training, add certain displays to their showrooms and develop a business plan with one of Ford's eight accessory distribution centers.

That's incredible. This basically confirms that either the two Ford dealerships I spoke with here in NC either flat out lied to me about not knowing anything about distribution or are just inept.

Edit: My original comment stands. I spoke with dealerships here in July 2020 prior to my original reservation. This bulletin is dated two months later. Was this the first mention of an allocation system being used alongside the reservation system? Again, in July 2020, I spoke with two dealers in NC and none had mentioned allocation being part of the formula. They only told me that reservations were being used and get a reservation as early as possible to get a 2021 Bronco.
 
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cowman

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That's incredible. This basically confirms that either the two Ford dealerships I spoke with here in NC either flat out lied to me about not knowing anything about distribution or are just inept.
I would guess all three... :)
 

rugbysecondrow

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Dealers are in the business of making money. Right? These 'deals' aren't out of the goodness of their hearts. They're making money. I don't know for fact, but at least in my simple mind, if I sell 10 broncos at $1000 profit, or if I sell 30 broncos at $500 profit, I'm making more money by sheer volume. (And these dealers increased by much more than triple from what I've read) Nevermind whatever else they're making on whatever deals they have with whatever banks on doing financing through them. Also selling trade-ins, extended warranties, insurance, etc...

Dealers were aware of allocations. This isn't new to them. They tried gaming the system and Ford didn't play.

The dealerships used people and passed it off as 'deals'. And some people probably saved money, it was a two way street for a bit. But now dealerships are trying to blame Ford. Bc now they're probably not going to make the margins they were forecasting. And they're trying to use this forum to get people on their side.

...

Or hey, maybe I'm wrong and these dealerships did run their business model by Ford and Ford blessed it, and now Ford is going back on their word. However, I doubt that'll be the case. If it is, then I'll gladly eat crow. but none of us will ever really know if that's the truth or not.
I agree with you, which I understand is the minority viewpoint.

A few dealers actively sought to steer traffic away from local dealers by offering insanely great deals, deals that were completely unnecessary given the market conditions and the sought-after nature of the Bronco. It almost made no sense for them to do so given that so many people were willing to pay full price, and some well above full-price for a vehicle they were selling for % points below invoice. This was also done in a very public way, all over this and other forums. I respect the hustle.

As a consumer, I am fine with prices being lower. From a corporate perspective, I wouldn't want a few dealers driving the price (value) of my new, well sought after, vehicle down. From a dealership perspective, dealers shouldn't actively poach sales away from other dealers.

All this said, Ford should honor the commitments made to those who placed orders already...they need to be taken care of.

For those who are only reservation holders, but not order holder, I don't think Ford owes those people anything at this time.

As for pricing, Ford has not done a good job at communicating this. Ford has communicated "Price Locks at MSRP", but then has allowed dealers to take on some insanely high fees (ADM). This needs to stop ASAP. People who started this journey with a price expectation, communicated by a dealership in writing or verbally, should have that expectation realized when the Bronco arrives. It is, IMO, a form of bait and switch pricing that Ford should not allow.

TLDR: take care of order holder first, transition into allocation adjustments as reservation holders convert into order holders, stop the ADM bait and switch practices.
 

cowman

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I agree with you, which I understand is the minority viewpoint.

A few dealers actively sought to steer traffic away from local dealers by offering insanely great deals, deals that were completely unnecessary given the market conditions and the sought-after nature of the Bronco. It almost made no sense for them to do so given that so many people were willing to pay full price, and some well above full-price for a vehicle they were selling for % points below invoice. This was also done in a very public way, all over this and other forums. I respect the hustle.

As a consumer, I am fine with prices being lower. From a corporate perspective, I wouldn't want a few dealers driving the price (value) of my new, well sought after, vehicle down. From a dealership perspective, dealers shouldn't actively poach sales away from other dealers.

All this said, Ford should honor the commitments made to those who placed orders already...they need to be taken care of.

For those who are only reservation holders, but not order holder, I don't think Ford owes those people anything at this time.

As for pricing, Ford has not done a good job at communicating this. Ford has communicated "Price Locks at MSRP", but then has allowed dealers to take on some insanely high fees (ADM). This needs to stop ASAP. People who started this journey with a price expectation, communicated by a dealership in writing or verbally, should have that expectation realized when the Bronco arrives. It is, IMO, a form of bait and switch pricing that Ford should not allow.

TLDR: take care of order holder first, transition into allocation adjustments as reservation holders convert into order holders, stop the ADM bait and switch practices.
Once again... Ford sells to dealer.... they can not tell the dealer what to sell it for... just suggest it... is the Dealers Bronco.... same as the dealer can not tell you what to sell it for once it is yours if and when you decide to sell it....
 

Jdc

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Once again... Ford sells to dealer.... they can not tell the dealer what to sell it for... just suggest it... is the Dealers Bronco.... same as the dealer can not tell you what to sell it for once it is yours if and when you decide to sell it....
They may not be able to tell the dealer what to sell it for but they sure as hell could penalize them for not heeding their "suggested retail price", in the exact same way that they were supposedly going to penalize dealers that weren't hitting a high name match percentage.
 

Bison

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You will have to contact Ford for the exact number... was told over 2500 by one dealer in Dallas... true or not.... see no reason for them to lie...
How many of those are name verified reservations and how many are crap orders so they can sell at high prices. Ford is allowing only a 60% name verification before they ad penalties. So my guess is like 50%. Granger has said it is at 100% name verification and I have no reason to not believe them.
 

rugbysecondrow

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Once again... Ford sells to dealer.... they can not tell the dealer what to sell it for... just suggest it... is the Dealers Bronco.... same as the dealer can not tell you what to sell it for once it is yours if and when you decide to sell it....
...but they can sure as shit impact your inventory. Maybe they can't tell you what to price them at, but they can give you fewer to sell at that price.

Pick any other franchise network or brand, would they allow the few discount dealers to undercut the entire network of franchise dealers? Likely not. There is a massive investment in the entire dealer network, multiple other lines of vehicles and service to reconcile.
 

cowman

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They may not be able to tell the dealer what to sell it for but they sure as hell could penalize them for not heeding their "suggested retail price", in the exact same way that they were supposedly going to penalize dealers that weren't hitting a high name match percentage.
Yep... looks that that is what they have done by changing the allocations.... goes both ways.... above suggested and below suggested.... kind of like what Glock did several years ago.... they suggested that the distributor not sell below a certain price... some did some didn't.... the ones that didn't the next year got no Glocks..... one distributor told me they lost 12 million in Glock sale that year... they never sold below Glocks suggested again....
 

rugbysecondrow

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I figured you likely got banned from those threads. I did as well. Cutting out certain opinions is not in the best interests in the community as a whole and just creates suspicion that we're being spoon fed a certain narrative that the site wants us to believe. At the same time, they call out another site for doing this. If people are not able to offer their opinion respectfully on a topic because you are in the minority, we might as well shut off the lights and call it a wrap.
Ditto on the banning from certain threads...seems like a weird trend here, which I didn't realize was happening.

Wonder how many other people got banned for offering opinions that don't conform to groupthink?
 

phocion

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kind of like what Glock did several years ago.... they suggested that the distributor not sell below a certain price... some did some didn't.... the ones that didn't the next year got no Glocks..... one distributor told me they lost 12 million in Glock sale that year... they never sold below Glocks suggested again....
Ford changing the allocation from one year to the next to close a loophole that they feel impacts their brand makes business sense. What doesn't make business sense is boning the thousands of end customers at those dealers who already have orders in the system. Surely there are other ways they could punish Granger/Chapman/etc. that wouldn't directly poison the Bronco buying experience for so many enthusiastic early adopters of a new model.
 

Jdc

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Yep... looks that that is what they have done by changing the allocations.... goes both ways.... above suggested and below suggested.... kind of like what Glock did several years ago.... they suggested that the distributor not sell below a certain price... some did some didn't.... the ones that didn't the next year got no Glocks..... one distributor told me they lost 12 million in Glock sale that year... they never sold below Glocks suggested again....
Except, to the best of our knowledge, no such restriction existed for these dealers. Ford came up with a new allocation model, and the dealers took advantage of the model Ford presented them.
 

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Here:
https://www.bronco6g.com/forum/thre...ons-ordering-dates-build-date-estimates.5793/

Dealer allocation will depend on a retailer's market size, previous SUV sales performance, the number of reservations tied to their store and competitive off-road registrations in their market, LaNeve said.

"We're really trying to have an equitable and fair process for allocating to dealers," LaNeve said. "We have dealers that will get hundreds of Broncos allocated to them in 2021 and you go from there. Bigger dealers with lots of reservations will generate the most allocation, but we're going to try and take care of every dealer who has reservations."

The allocation formula has changed to benefit dealers that sold models other than Bronco to benefit dealers in larger markets. That's not speculation. They did not expect a smaller dealer to get more reservations. So, they changed it to fit what they wanted. The number of allocations for Granger has already proven to be smaller than last year. They have the numbers for the beginning of '22 production.

Sorry, it blows my mind that folks are ignoring what is right there in front of you. The post you're quoting from was from 2020, right from the beginning. So, this quote is from the beginning.

"Dealer allocation will depend on a retailer's market size, previous SUV sales performance, the number of reservations tied to their store and competitive off-road registrations in their market, LaNeve said."

So, nothing has changed. FROM THE BEGINNING, Ford said the allocation would be tied to market size and previous sales, as well as Bronco orders. You and others keep saying that Ford changed the allocation system, and they didn't. The best evidence is right in the quote that YOU posted. Again, you keep arguing with me, and every post you make supports my point. So, what are we actually discussing?

Listen, I'm not defending Ford. I'm not making excuses for Ford. Ford doesn't need me to defend them. I'm responding to incorrect information that is so easily thrown around on this forum. It seems as long as enough people say the same thing, it becomes fact, even if the information is incorrect. Consensus doesn't change fact.

I get it, people need to blow off steam. But frustrated venting also doesn't change fact, it's just frustrated venting. Seriously, I wish a whole bunch of you folks would cancel your Bronco orders since life is so bad for you and Ford is shitting on you. Why on earth would you buy anything from them? Move on. Let the rest of us get our Broncos.
 

CPL_Rabbit

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Sorry, it blows my mind that folks are ignoring what is right there in front of you. The post you're quoting from was from 2020, right from the beginning. So, this quote is from the beginning.

"Dealer allocation will depend on a retailer's market size, previous SUV sales performance, the number of reservations tied to their store and competitive off-road registrations in their market, LaNeve said."

So, nothing has changed. FROM THE BEGINNING, Ford said the allocation would be tied to market size and previous sales, as well as Bronco orders. You and others keep saying that Ford changed the allocation system, and they didn't. The best evidence is right in the quote that YOU posted. Again, you keep arguing with me, and every post you make supports my point. So, what are we actually discussing?
The allocation did change. It has been weighted differently to the benefit different dealers. The initial Granger number is already in, and they will only get 11 allocated to start the year. If that ratio holds, they'll get 132 allocations on at least 1000 pre-orders.

In '21, they got 203 allocations for 6 months of limited production and setbacks.
 
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