Farley: Ford is Going to 100% Online, Fixed-Price Sales For EVs

[CA RTE 1]

My Apr-2021 CA RTE 1 was a100% online start-to-finish experience with Ford. Well almost 100% actually it was more like 99.5% online. The last .5% was the EV delivery to the Lincoln Dealership (and to the salesperson), I have dealt with for years. The Mach-E was washed and fully charged upon my arrival. When I had an issue with software setting the dealer set an appointment for that. In my view, there will be dealers that will be ready-and-willing to service their, or new, customers. Additionally, that Lincoln Dealership handled 100% of my recall concerns (including setting the appointment and a Lincoln loaner (free)).

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[rcechinel]

And of course there's no negotiation available at all: everyone pays it, so you can take it or leave it. Leveling off the worst and best deals available through the dealer model, basically, and sending the spoils directly to the manufacturer.

Great, where do I sign?
Want a bargain, buy used.

 

[Tngo23]

The plan should be:
Eliminate dealers from EV sales
Establish service centers dedicated to solely Model E lines, preferably Ford owned.

I like the idea of eliminating the GREEDY Dealerships that are notorious for adding outrageous ADM......Sell only to honest Dealerships who value their return Customers!

 

[roamtheworld]

After spending $13K+ in ADM for our Mach E (customer ordered and backed out) I’m all for a fixed price at the time of ordering. If the price goes up before we are ready to purchase that’s on us. As for Lowes refrigerators we bought one just before COVID and then sold our house. Looked to get the same model after COVID and couldn’t get one anywhere within 300 miles. We gave up and stayed with the one that came with house. Had to order washer and dryer at same time and it took 3 months to get. We are in weird times and knowing how much you’re going to pay and that it will be delivered in a somewhat “normal” timeframe is good enough now.

 

[Tngo23]

I wholeheartedly agree with you But whether we like it or not Ford/Farley has made that decision copying Tesla. Eventually most manufacturers will follow suit to Tesla and now Ford.
When Tesla started selling their EV's over a decade ago, I am sure Ford scoffed at them for first selling EV's and second directly to consumers. Now look at who is copying who?

Js Saying.......

 

[RedStallion]

The plan should be:
Eliminate dealers from EV sales
Establish service centers dedicated to solely Model E lines, preferably Ford owned.

Agree except for the Ford ownership of the service centers. That's not the business they will like to be in. What Ford (or another large company) can do is establishing a franchising, so that the same standards can be applied everywhere. That way you get exactly the same level of service whether you are in a small town in the middle of nowhere or in a big city.

 

[ridgebackpilot]

You're forgetting one important thing: Competition among OEMs. As more and more EVs come online, the OEMs that charge more and more will lose market share to those that price their EVs reasonably. We're already seeing that as the Ford MME competes directly with the Tesla Model Y.

Who needs dealerships? No one, really, and few people will miss them. Two years ago when I bought my Tesla Model 3, I test-drove one at a showroom, purchased mine online out of existing inventory, and take it to a Tesla Service Center when it needs warranty or other service. Tesla has become the world's most profitable auto manufacturer without any dealerships.

I suspect most people will miss auto dealerships about as much as they miss their dentist when it comes time for a root canal! They're an outdated business model and I strongly suspect we'll soon see state legislatures repeal the old laws that protect dealers.

 

[RedStallion]

And how is having a (greedy) man in the middle saving you money? The math simply doesn't work.

 

[littlD]

For those who were concerned about reading about what Jim said and paywalls, you can watch the entire interview for free, just a prompt for name, email address, the normal stuff for investor things.

It's worth a watch. As a Tesla owner (and stock holder $TSLA), I have a lot of respect for Jim Farley. Class act.

https://kvgo.com/bernstein-2022-38th-annual-sdc/ford-motor-company-june

Ford provided a full transcript as well:
https://shareholder.ford.com/files/...th-Annual-Strategic-Decisions_June-1-2022.pdf

 

[sledgemoto]

All for it, but how are they going to get around the laws protecting dealership models? I doubt the privately owned dealers are going to play ball when they are being benched.

"As it stands at the moment, 17 states prohibit all automakers from selling vehicles directly to customers, while another 11 states have carved out specific exceptions for Tesla (and in some cases, other automakers that sell only EVs, which means Rivian and Lucid). "

https://cleantechnica.com/2022/01/3...-laws-holding-back-electric-vehicle-adoption/

And Ford Model E

Ford Splits Electric and Internal Combustion Vehicle Lines Into Separate Company Divisions (motortrend.com)

 

[kdryden99]

When i picked up my Mach E, in april 2021, the salesman literally told the guy delivering me the car "he probably knows the car more than we do" and he wasn't joking or wrong about that. Ppl are getting wiser and information is much more accessible than before. The newer generations will be much more informed and will only visit the dealers for the showrooms.

 

[machdady]

If I never have to go to a dealer again it will be too soon. I’ve never had a good experience buying a car. This one was one of the better only at the time sitting down with finance. I’m hoping that in 3 years when I can turn in my mach e I can get a new one direct to my house. I’d be happy to have paid extra this time if I could have done everything online and someone at ford delivered the car to me.

I think manufacturers should be competing with themselves on price (Tesla won’t be able to keep increasing prices for long) rather than dealers competing on price for the exact same car.

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