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why are we blaming Ford and not the dealers?

dingle87

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Why is Ford trying to appease big dealers at all? What leverage do they have over Ford? What are they going to do, drop Ford and sell Yugo instead?

Ford should be in the business of building vehicles and getting them into consumers' hands as quickly as possible. This new allocation formula does nothing to expedite this process, it doesn't make a dime more money for Ford, and it just drives disgruntled reservation holders to buy a competitor's vehicle instead.

I usually trust capitalism to naturally exploit market inefficiencies, but somehow the auto industry continually chooses 'tradition' over profits.
Volume.

Big dealers in large markets move stock. But that's the rub here... the "stock" isn't the same. There are buyers waiting in line to just pickup the vehicle. Dealers don't have to work for the sale like a walk in customer or an internet inquiry. It's right there in their lap. The issue is transparency with the terms of the deal. I haven't found a dealer locally (Chicago area) that will commit to anything. Therein lies the problem.
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cowman

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I just remember back before the reservation system went live that the dealers were lost. Ford hadn't communicated with them about the reservation system and how it would look, so even if the customer reached out to a dealer you couldn't get any info on the reservation system and allocations weren't even mentioned. For that reason alone I don't see how you can kill the reservation holder for not knowing the internal workings of the allocation system. It was never mentioned. Perhaps Ford didn't even intend to use it at that time and later added it back in after larger dealers went begging and having tantrums. Regardless, we the customer are left holding the bag.
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.
 
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PowPow

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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."
Interesting. I wonder who these dealers then spoke to that gave them the OK? If this was said in Sept 2020? Well before ordering started...

I admitted when I thought I was wrong. Will the others do the same?
 

ColoradoGuy

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Ford in 2020: Trust the reservation system process, we'll build reservations before dealer stock. We love our reservation holders and you can definitely choose whichever one of our 3000+ dealers you like!

Ford through 2020 and 2021: We love our reservation holders. Hey media, look we have over 150k+ reservations! Here's hammocks and stickers for our valued reservation holders. Hang in there!

Ford last week: Okay yeah reservations were cool but you should have known that we have obligations to our largest dealers and we're enforcing an allocation system. Your reservation is nice but we're giving your exact build to this giant dealer to sell on their lot first because your specific dealership isn't as high value of a dealership to us. You should have known this and you should violently kill yourself for not knowing this. Dealers who can't even come close to matching our name match policy are forgiven and we're relaxing that rule despite other dealers hitting 100% name match. Stay pumped!

You can see why people are upset.
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cowman

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I looked at Granger's footprint on Google Earth. It doesn't seem THAT small of a dealership. It is far larger than my "small" local dealership (who is part of a larger multi-brand, multi-location) auto dealer company of Toyota, Ford and Chevrolet. Granger just miles from Des Moines, Iowa, so I'm sure it gets sales from the greater Des Moines metro area of 700,000 people; Des Moines is ranked 83rd in population in the US (i.e. it's not a small town by any stretch). My county, where my local and only Ford dealership has served since 1928, has a population of just 13,000 people. The next closest Ford dealership to mine is owned by the same company, so they are not competing dealerships. It'd say Granger is probably a major Ford distributor; it's not "small" by any stretch.

Had things been normal for production of the Bronco at launch (i.e. non-COVID) Granger's 1,300 or so orders would have been not even a full week of Bronco production. Granger's plans to sell Bronco's at a serious discount has been screwed by COVID as much as Ford's plans for a non-problematic launch of the Bronco. It can't get all of its remaining 800 orders filled by the new allocation methodology, neither can any other dealership.

Every Ford dealership's history starts out as someone's "grandfather's story". Just to be transparent.
Top 150 Dealers in the country see if you can find Granger...

71040 Galpin Ford
48048 Suburban Ford of Sterling Heights
48032 Bill Brown Ford Inc
48426 Varsity Ford
52020 Five Star Ford
52032 Planet Ford
74748 AutoNation Ford Katy
48024 Pat Milliken Ford, Inc.
52023 Joe Myers Ford Lincoln
53507 Woodhouse Ford, Inc.
48030 Tom Holzer Ford, Inc.
24222 Brandon Ford
71152 Sunrise Ford
71179 Peoria Ford
48044 Taylor Ford
47035 Ricart Ford
52031 Mac Haik Ford
52024 AutoNation Ford Gulf Freeway
71171 Don Sanderson Ford
52302 Covert Ford, Inc.
13301 Dana Ford Lincoln
21019 Capital Ford Inc
52204 Mac Haik's Southway Ford
48026 Southgate Ford
44120 West Herr Ford Inc
52055 Tomball Ford, Inc.
48003 Mike Dorian Ford, Inc
71089 Ken Grody Ford
72206 Future Ford Lincoln
48028 Avis Ford, Inc.
71018 South Bay Ford Lincoln
11010 Quirk Ford 1593 305
27042 Ted Britt Fairfax Ford
52018 Grapevine Ford Lincoln
52752 Bluebonnet Motors
52146 Mac Haik Ford Lincoln
48016 Jack Demmer Ford, Inc.
71182 San Tan Ford
52046 Randall Reed's Planet Ford
52007 Sam Pack's Five Star Ford of Lewisville
13147 All American Ford Inc
58020 Apple Ford Lincoln Apple Valley
48022 Gorno Bros Inc
71019 Sunrise Ford of North Hollywood
71169 Gaudin Ford
21026 Crossroads Ford, Inc.
71168 Ford Country
52056 Red McCombs Ford
52014 Sam Pack's Five Star Ford
13058 All American Ford of Old Bridge
56002 Phil Long Ford of Denver, LLC
56301 Rich Ford Sales, Inc.
27044 Koons Sterling Ford
58015 AutoNation Ford White Bear Lake
48051 Huntington Ford, Inc.
72403 The Ford Store Morgan Hill
48411 Hines Park Ford, Inc.
71080 Penske Ford
52057 McCombs Ford West
48005 Royal Oak Ford
48050 Suburban Ford of Waterford, LLC
27016 Lindsay Ford, LLC
24461 Gary Yeomans Ford
52058 Jordan Ford, Ltd.
53201 Rusty Eck Ford, Inc.
48027 Village Ford Inc
48040 Russ Milne Ford, Inc.
52104 Hacienda Ford
71167 Team Ford Lincoln
53792 Joe Machens Ford, Inc.
47136 Andy Mohr Ford, Inc.
27007 Ted Britt Chantilly Ford Lincoln
52008 David McDavid Ford Ft. Worth
52017 North Central Ford
71084 Kearny Pearson Ford
58016 North Country Ford Lincoln
24009 Sawgrass Ford
41066 Golf Mill Motor Sales, Inc.
52509 Bob Tomes Ford
56009 AutoNation Ford Littleton
21441 Mall of Georgia Ford
24480 Sam Galloway Ford Lincoln
21225 Crown Ford
48508 Brighton Ford, Inc.
72205 Future Ford
52525 AutoNation Ford Frisco
21480 Akins Ford
52166 Gullo Ford of Conroe
71170 Friendly Ford
13465 Schultz Ford Lincoln, Inc.
47022 Bill Collins Ford Lincoln of Louisville
52212 Shamaley Ford
21111 Long-Lewis Ford Lincoln
13143 Paramus Ford, Inc.
71439 Jim Burke Ford
47014 Mike Castrucci Ford Sales, Inc.
71176 Earnhardt Ford
52210 Casa Ford Lincoln
52097 Boggus Motor Sales II, LLC
44117 West Herr Ford of Amherst, LLC
24002 AutoNation Ford Miami
52063 Northside Ford
24408 Bartow Ford Co
24413 Bozard Ford-Lincoln
53116 Olathe Ford Lincoln
53032 Charles Gabus Ford
48039 Dean Sellers Inc
53049 Bommarito Ford
53203 Mel Hambelton Ford, Inc.
71178 AutoNation Ford Scottsdale
27547 Preston Ford Lincoln
48017 Jorgensen Ford Sales, Inc.
27048 Cowles Parkway Ford, Inc.
53014 Gary Crossley Ford, Inc.
27020 Sheehy Ford of Gaithersburg LC
53080 Dave Sinclair Ford, Inc.
27047 Waldorf Ford, Inc.
71155 Fritts Ford
44083 Klaben Ford Lincoln, Inc.
44115 C. Basil Ford, Inc.
52012 Randall Reed's Prestige Ford
71053 David Wilson's Villa Ford
27037 Koons Ford of Baltimore Inc
52572 Sewell Ford-Lincoln
13033 Ford Lincoln of Queens Boulevard
52303 Maxwell Ford
44605 Mike Bass Ford, Inc.
13507 Healey Ford Lincoln, LLC
52182 Helfman Ford Inc
24203 Bill Currie Ford
27030 Apple Ford Lincoln
47313 Ray Skillman Ford, Inc.
52408 Southwest Ford, Inc.
72207 Folsom Lake Ford, Inc.
27054 Beach Ford Inc
52241 Tommie Vaughn Motors, Inc.
44119 Towne Ford Inc
21015 Long-Lewis Ford Lincoln
48010 Roy O'Brien, Inc.
52758 Spikes Motor Company, Inc.
56593 Lithia Ford Lincoln of Boise
27027 Al Packer's White Marsh Ford LLC
24224 Greenway Ford, Inc.
21209 J.C. Lewis Ford, LLC
58716 Sioux Falls Ford Lincoln
11023 Tasca Ford Lincoln
52005 Park Cities Ford Lincoln
74009 Ford of Kirkland
24402 Sarasota Ford
72208 Elk Grove Ford
 

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CPL_Rabbit

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I looked at Granger's footprint on Google Earth. It doesn't seem THAT small of a dealership. It is far larger than my "small" local dealership (who is part of a larger multi-brand, multi-location) auto dealer company of Toyota, Ford and Chevrolet.
I'll concede that Granger is not a tiny dealer overall. But they are an independent dealer, which makes them a whole lot smaller than someone like Galpin, with franchises around the country. It sounds like yours is just a satellite of the latter.

Had things been normal for production of the Bronco at launch (i.e. non-COVID) Granger's 1,300 or so orders would have been not even a full week of Bronco production. Granger's plans to sell Bronco's at a serious discount has been screwed by COVID as much as Ford's plans for a non-problematic launch of the Bronco. It can't get all of its remaining 800 orders filled by the new allocation methodology, neither can any other dealership.
COVID, while part of it, is a bit of a cop-out. They also have some big self-inflicted wounds. Like signing off on a defective top design and blaming the producer for months. That decision set them back a lot, as they had to go back and redo a bunch of tops.

If they produced Broncos for reservations (commodity limits withstanding), they would produce the same number of vehicles, and we wouldn't have an issue. Granger would get the same percentage of their reservations as any other dealer.

Instead, they have skewed allocation to allow for more stock units to dealers in larger markets. Dealers that have been able to push unpopular models in the past.
 

Rahkmalla

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Could this be a class action candidate?
Highly unlikely. All the small print on the reservation says you're entitled to nothing other than a refund if things go sideways.
 

Rahkmalla

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Top 150 Dealers in the country see if you can find Granger...

71040 Galpin Ford
48048 Suburban Ford of Sterling Heights
48032 Bill Brown Ford Inc
48426 Varsity Ford
52020 Five Star Ford
52032 Planet Ford
74748 AutoNation Ford Katy
48024 Pat Milliken Ford, Inc.
52023 Joe Myers Ford Lincoln
53507 Woodhouse Ford, Inc.
48030 Tom Holzer Ford, Inc.
24222 Brandon Ford
71152 Sunrise Ford
71179 Peoria Ford
48044 Taylor Ford
47035 Ricart Ford
52031 Mac Haik Ford
52024 AutoNation Ford Gulf Freeway
71171 Don Sanderson Ford
52302 Covert Ford, Inc.
13301 Dana Ford Lincoln
21019 Capital Ford Inc
52204 Mac Haik's Southway Ford
48026 Southgate Ford
44120 West Herr Ford Inc
52055 Tomball Ford, Inc.
48003 Mike Dorian Ford, Inc
71089 Ken Grody Ford
72206 Future Ford Lincoln
48028 Avis Ford, Inc.
71018 South Bay Ford Lincoln
11010 Quirk Ford 1593 305
27042 Ted Britt Fairfax Ford
52018 Grapevine Ford Lincoln
52752 Bluebonnet Motors
52146 Mac Haik Ford Lincoln
48016 Jack Demmer Ford, Inc.
71182 San Tan Ford
52046 Randall Reed's Planet Ford
52007 Sam Pack's Five Star Ford of Lewisville
13147 All American Ford Inc
58020 Apple Ford Lincoln Apple Valley
48022 Gorno Bros Inc
71019 Sunrise Ford of North Hollywood
71169 Gaudin Ford
21026 Crossroads Ford, Inc.
71168 Ford Country
52056 Red McCombs Ford
52014 Sam Pack's Five Star Ford
13058 All American Ford of Old Bridge
56002 Phil Long Ford of Denver, LLC
56301 Rich Ford Sales, Inc.
27044 Koons Sterling Ford
58015 AutoNation Ford White Bear Lake
48051 Huntington Ford, Inc.
72403 The Ford Store Morgan Hill
48411 Hines Park Ford, Inc.
71080 Penske Ford
52057 McCombs Ford West
48005 Royal Oak Ford
48050 Suburban Ford of Waterford, LLC
27016 Lindsay Ford, LLC
24461 Gary Yeomans Ford
52058 Jordan Ford, Ltd.
53201 Rusty Eck Ford, Inc.
48027 Village Ford Inc
48040 Russ Milne Ford, Inc.
52104 Hacienda Ford
71167 Team Ford Lincoln
53792 Joe Machens Ford, Inc.
47136 Andy Mohr Ford, Inc.
27007 Ted Britt Chantilly Ford Lincoln
52008 David McDavid Ford Ft. Worth
52017 North Central Ford
71084 Kearny Pearson Ford
58016 North Country Ford Lincoln
24009 Sawgrass Ford
41066 Golf Mill Motor Sales, Inc.
52509 Bob Tomes Ford
56009 AutoNation Ford Littleton
21441 Mall of Georgia Ford
24480 Sam Galloway Ford Lincoln
21225 Crown Ford
48508 Brighton Ford, Inc.
72205 Future Ford
52525 AutoNation Ford Frisco
21480 Akins Ford
52166 Gullo Ford of Conroe
71170 Friendly Ford
13465 Schultz Ford Lincoln, Inc.
47022 Bill Collins Ford Lincoln of Louisville
52212 Shamaley Ford
21111 Long-Lewis Ford Lincoln
13143 Paramus Ford, Inc.
71439 Jim Burke Ford
47014 Mike Castrucci Ford Sales, Inc.
71176 Earnhardt Ford
52210 Casa Ford Lincoln
52097 Boggus Motor Sales II, LLC
44117 West Herr Ford of Amherst, LLC
24002 AutoNation Ford Miami
52063 Northside Ford
24408 Bartow Ford Co
24413 Bozard Ford-Lincoln
53116 Olathe Ford Lincoln
53032 Charles Gabus Ford
48039 Dean Sellers Inc
53049 Bommarito Ford
53203 Mel Hambelton Ford, Inc.
71178 AutoNation Ford Scottsdale
27547 Preston Ford Lincoln
48017 Jorgensen Ford Sales, Inc.
27048 Cowles Parkway Ford, Inc.
53014 Gary Crossley Ford, Inc.
27020 Sheehy Ford of Gaithersburg LC
53080 Dave Sinclair Ford, Inc.
27047 Waldorf Ford, Inc.
71155 Fritts Ford
44083 Klaben Ford Lincoln, Inc.
44115 C. Basil Ford, Inc.
52012 Randall Reed's Prestige Ford
71053 David Wilson's Villa Ford
27037 Koons Ford of Baltimore Inc
52572 Sewell Ford-Lincoln
13033 Ford Lincoln of Queens Boulevard
52303 Maxwell Ford
44605 Mike Bass Ford, Inc.
13507 Healey Ford Lincoln, LLC
52182 Helfman Ford Inc
24203 Bill Currie Ford
27030 Apple Ford Lincoln
47313 Ray Skillman Ford, Inc.
52408 Southwest Ford, Inc.
72207 Folsom Lake Ford, Inc.
27054 Beach Ford Inc
52241 Tommie Vaughn Motors, Inc.
44119 Towne Ford Inc
21015 Long-Lewis Ford Lincoln
48010 Roy O'Brien, Inc.
52758 Spikes Motor Company, Inc.
56593 Lithia Ford Lincoln of Boise
27027 Al Packer's White Marsh Ford LLC
24224 Greenway Ford, Inc.
21209 J.C. Lewis Ford, LLC
58716 Sioux Falls Ford Lincoln
11023 Tasca Ford Lincoln
52005 Park Cities Ford Lincoln
74009 Ford of Kirkland
24402 Sarasota Ford
72208 Elk Grove Ford
that list looks familiar. Pretty sure I saw the same one... isn't that almost a decade old and aren't some of those dealers sold or closed?
 

Bison

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I looked at Granger's footprint on Google Earth. It doesn't seem THAT small of a dealership. It is far larger than my "small" local dealership (who is part of a larger multi-brand, multi-location) auto dealer company of Toyota, Ford and Chevrolet. Granger just miles from Des Moines, Iowa, so I'm sure it gets sales from the greater Des Moines metro area of 700,000 people; Des Moines is ranked 83rd in population in the US (i.e. it's not a small town by any stretch). My county, where my local and only Ford dealership has served since 1928, has a population of just 13,000 people. The next closest Ford dealership to mine is owned by the same company, so they are not competing dealerships. It'd say Granger is probably a major Ford distributor; it's not "small" by any stretch.

Had things been normal for production of the Bronco at launch (i.e. non-COVID) Granger's 1,300 or so orders would have been not even a full week of Bronco production. Granger's plans to sell Bronco's at a serious discount has been screwed by COVID as much as Ford's plans for a non-problematic launch of the Bronco. It can't get all of its remaining 800 orders filled by the new allocation methodology, neither can any other dealership.

Every Ford dealership's history starts out as someone's "grandfather's story".

Just to be transparent.

Everything is a big town to me. My home town has the population of 150, not one street light. 700,000 is small compared to 5 million. So if they aren’t that small they should maybe get more allocations then 10 a month? So there has to be something more sinister at play like other dealers who lost reservations complained, (which is a factual statement as my hometown dealer professed to me) then Ford went from 200 allocations a year for granger down to 120. 120 isn’t a confirmed number just what they are expecting for the year. I hope that number is wrong.

Yes every dealership has its back stories the ones around me have a lot of dealings in the illegal drug trade. Hopefully they no longer practice this but I know they still partake in it. The only thing I know about granger is they actually helped me out more then any dealer I have ever dealt with. I did not go there to get my bronco fast nor did I go there for the price.
 

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cowman

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That's the point; MOST Ford dealerships are not huge conglomerates that we believe are forcing Ford to change the 2022 allocation scheme.
September 2020....
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."
 

Bison

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that list looks familiar. Pretty sure I saw the same one... isn't that almost a decade old and aren't some of those dealers sold or closed?

I saw my drug dealership in their and they are still in business.
 

Bison

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Interesting. I wonder who these dealers then spoke to that gave them the OK? If this was said in Sept 2020? Well before ordering started...

I admitted when I thought I was wrong. Will the others do the same?
[

You are only reading what you want to. I see what you see but you have a problem seeing what other people see and you almost had it. It says most reservations will be converted but it will drift into 2022 not 2026. Is that the dealers fault too?
 

BoiseBronco

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Highly unlikely. All the small print on the reservation says you're entitled to nothing other than a refund if things go sideways.
I figured as much - sigh.
 
 


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