Ford Wants More Buyers to Order Online

[All Hat No Cattle]

This does not quite eliminate the dealer model, but it is a start. No more paying for options you don't want, or colors you don't care for.

Ford Wants More Buyers to Order Online and Wait, Rather Than Pick Off the Lot
Auto maker plans permanent reductions in vehicles carried on dealership lots, hoping to do more sales from buyers who custom order


Ford Motor Co. F -4.35% wants to put you into a new car—in six to eight weeks.


In a shift in the way it sells vehicles, Ford plans to do a bigger portion of its sales by having buyers order from the factory and wait, rather than pick from the selection available at the dealership.


Company executives say efforts to shift more of Ford’s auto retailing operations to a so-called build-to-order model, where people custom-order online and take delivery at the dealership, would help cut inventory costs for the company and its dealers. It would also help Ford to deliver more vehicles that customers specifically want, while weeding out the hard-to-sell models that end up collecting dust at dealerships and lead to profit-sapping discounts, they say.

The approach, which was outlined to Wall Street in July and is being implemented now, is a departure from the way vehicles have been sold by car companies and dealers in the U.S. While dealers and analysts see potential benefits, they also flag risks, notably the prospect of losing market share if shoppers who aren’t willing to wait simply go elsewhere.

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[Davedough]

They need to REALLY up their game in correspondence and transparency then. It'll never catch on if all consumers get the same vague treatment like a lot of us Mach E reservation holders got

 

[ZuleMME]

Yea, the real problem with a paradigm shift is getting the customers on board vs just pushing them to the competition. This might work in the Mach-E and Lightning because EV's are still pretty niche and not carried on lots. But once they are...

 

[snikt]

It would have to be a lot more predictable with timelines and delivery than it is now for it to really catch on mass market.

Most people probably can't or don't want to wait 24+ weeks, or 3-6 months or whatever

 

[Earplug]

And they will need to controls ADM!

 

[Pibbman]

Honestly, I like this approach even more so than the current way. I’m not saying this because I hate dealers (I do) but from a waste standpoint I like it.

Ford is less likely to overproduce vehicles this way. This eliminates cost on their end and they only make what people want. Meanwhile, we make more meaningful use of resources.

 

[Carmel Mach E Auto]

They better get the allocation nonsense under control then. For starters, as soon as you select a dealership to begin the order process, they need to tell you exactly how many more of the vehicle you intend to buy can be ordered by that dealership for that month. Even better would be to eliminate allocations on a dealership basis altogether, but I suspect they aren't able to do that at this time due to legal constraints.

Another obvious piece of low hanging fruit: show buyers their four digit order number as soon as the order is placed by the dealership. Or, as a longer term goal, even better, just get rid of that number completely. Similarly, again, present the buyer their VIN number online as soon as the vehicle has been scheduled for production.

Also, combine the shop.ford.com/vehicleordertracking tracker with the similar one that's displayed with online reservations. Furthermore, improve the visibility, granularity, accuracy, and consistency of the tracking information provided.

Finally, allow everyone to complete all paperwork online. That's the biggie. No sitting in a chair with the finance manager or other antics. Just complete the sale from your home and then go to the dealership to pick up the car or perhaps have it delivered to your doorstep.

At a bear minimum, this is what it will take to compete in the new era of the automobile.

 

[Kabish]

I was listening to the news the other day. The auto industry is already discussing moving to the Build to Order model.

I mean if you think about it, its WAY more cost effective for them, no more throwing inventory onto lots and hoping it sells. You won't have to buy these HUGE dealerships because you will only have maybe one or two models at most of each car. Not to mention, you won't have to hire 6 sales men that stand around all day.

COVID has done so strange stuff. I don't know if American's will buy having to order a car and wait 3 or 4 months for it to arrive. People want things now, not later.

 

[Blinkin]

I was listening to the news the other day. The auto industry is already discussing moving to the Build to Order model.

I mean if you think about it, its WAY more cost effective for them, no more throwing inventory onto lots and hoping it sells. You won't have to buy these HUGE dealerships because you will only have maybe one or two models at most of each car. Not to mention, you won't have to hire 6 sales men that stand around all day.

COVID has done so strange stuff. I don't know if American's will buy having to order a car and wait 3 or 4 months for it to arrive. People want things now, not later.

I agree that people's desire to have things RIGHT NOW will probably be the biggest obstacle. In the pandemic, people got used to limited travel, so waiting a few months for a new car (and potentially having to share or go without in the interim) wasn't so bad. People whose leases were ending also got extension deals more easily due to tight inventory.

Personally, I'd rather have the exact vehicle I want built-to-order and wait a bit, but I'm also in a position where I don't have to wait until my current vehicle has been completely driven into the ground before I do that. Not everyone can say that - some people buy off the lot rather than ordering precisely because they put off buying until the last minute, and need a new car immediately.

 

[EVready]

I like it....it seems to work pretty well for Tesla.

 

[RickMachE]

I like it....it seems to work pretty well for Tesla.

Apples and Oranges. Tesla had no established dealer network. Tesla is selling to what percent of the buying public?

Ford has over 3,000 Ford and Lincoln dealerships. My dealer has 178 vehicles on his lot (he was down below 100). Historically, he has over 1,500 new vehicles at any time. He does an enormous business where people want X model, and he has 25 in various trims and colors. Now, you're going to take those away?

The dealers haven't bought into this model. My dealer isn't thrilled I'm sure.

 

[EELinneman]

This does not quite eliminate the dealer model, but it is a start. No more paying for options you don't want, or colors you don't care for.

Ford buyers want Ford to deliver, not just ask for online orders

 

[MachTee]

I likely wouldn't be driving a MME right now if there wasn't a dealer with a car I wanted on the lot that I was able to take delivery on the same day.

 

[VaderMachE]

I like the idea because I dislike the dealership set-up. It's dated and inefficient. Ford can have you build what you want, and the dealership is just a service hub for delivery or service issues. Rejected vehicles can be sold as stock units and they can continue to just send mannequins out for look overs and drives, then sold off as well. Where Ford, and other Auto makers need to focus, is cutting down the time from order to delivery. Once that is more in line, this can work.

Things are a changing, and yes, the pandemic assisted. We'll just have to watch and see what comes of this, but I'm thinking they'll keep pushing this way of selling.

 

[fightinag]

Will NEVER work If I can go to a dealer and get my car the same or next day
vs.
Ordering online and not getting a word after 4 months much less a vehicle

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