sborsch
Well-Known Member
- First Name
- Steve
- Joined
- Jan 21, 2022
- Threads
- 17
- Messages
- 122
- Reaction score
- 257
- Location
- Southern California
- Vehicles
- 2022 MME; 2020 Lexus NX300 Hybrid
- Occupation
- I.T. Consultant
- Thread starter
- #1
This article talks about Ford’s slight increase in penalty for dealers NOT attaching a customer name to an order (apparently a way to ‘game’ the system) but it sends a clear message: If you “F” around with us, you will be punished.
Link: https://carbuzz.com/news/ford-has-a-new-plan-to-stop-dealer-markups
My take? Ford knows that their dealer network is an asset, but a shift to EVs means a dealer’s major profit center (service) is going to deteriorate over time.
As an example of the radically reduced need for maintenance on an EV, a guy in my neighborhood has a Tesla Model 3 and, because of braking regeneration all the time, still has 85% of his brake pads at 46,XXX miles on his car.
In addition, Ford also has to compete with the direct selling model employed by Tesla, Rivian and Lordstown now, but Apple and others to follow will go that selling route too. As such, it will be even harder for Ford to maximize profit when competing with direct selling models.
It would be damn tough to be a car dealer right now so I can kinda, sorta understand why they’re gouging customers with additional dealer markup, but the consumer in me would like them to cease to exist!
Link: https://carbuzz.com/news/ford-has-a-new-plan-to-stop-dealer-markups
My take? Ford knows that their dealer network is an asset, but a shift to EVs means a dealer’s major profit center (service) is going to deteriorate over time.
As an example of the radically reduced need for maintenance on an EV, a guy in my neighborhood has a Tesla Model 3 and, because of braking regeneration all the time, still has 85% of his brake pads at 46,XXX miles on his car.
In addition, Ford also has to compete with the direct selling model employed by Tesla, Rivian and Lordstown now, but Apple and others to follow will go that selling route too. As such, it will be even harder for Ford to maximize profit when competing with direct selling models.
It would be damn tough to be a car dealer right now so I can kinda, sorta understand why they’re gouging customers with additional dealer markup, but the consumer in me would like them to cease to exist!
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