Golfer

Well-Known Member
First Name
Eric
Joined
Oct 15, 2019
Threads
30
Messages
93
Reaction score
297
Location
Vegas
Vehicles
Mustang GT, i3
Country flag
From Bloomberg

Ford’s CEO Sees EVs Helping Carmaker Pare Its $3 Billion Ad Budget

* Carmaker isn’t spending on Mustang Mach-E, since it’s sold-out
* Executive sees dealers shifting focus to service after sale


June 1, 2022

Ford Motor Co. Chief Executive Officer Jim Farley doesn’t see a need for traditional advertising for his company’s electric vehicles -- if they’re good enough to sell themselves.

“We spend $500 to $600 per vehicle on public advertising. Get rid of all of it,” Farley said Wednesday at the Bernstein Strategic Decisions Conference. “If you ever see Ford Motor Co. doing a Super Bowl ad on our electric vehicles, sell the stock.”

Ford is one of the nation’s biggest advertisers, spending $3.1 billion last year promoting its products. But Farley wants to emulate Tesla Inc., which controls the US market for EVs despite not buying traditional advertising. He said Ford hasn’t needed to advertise its new F-150 Lightning plug-in pickup and that it stopped promoting its electric Mustang Mach-E because “it’s sold out for two years.”

“I’m not convinced we need public advertising for” electric vehicles “if we do our job,” Farley said.
Farley, who is spending $50 billion on EVs through 2026, said his company’s advertising budget would be better spent to improve the customer experience for Ford’s car buyers, giving them special service and treatment at dealers throughout the life of their vehicle.

“Our model’s messed up,” Farley said. “We spend nothing post-warranty on the customer experience.”

Farley said Tesla has a cost advantage of $2,000 a car because the electric automaker has a direct sales model that doesn’t include car dealers.
But Farley isn’t looking to do away with dealers, who he contends could be a competitive advantage. He sees their role changing to focus on service after the sale. He also believes dealers will have to do 100% of sales online, with no-haggle pricing.

“Our dealers can do it, but the standards will be brutal,” Farley said. “Their business will change a lot and there will be a lot of winners and losers and, I believe, consolidation.”

 

rcechinel

Well-Known Member
First Name
Rod
Joined
Dec 30, 2021
Threads
2
Messages
476
Reaction score
443
Location
Atlanta
Vehicles
2022 Mach-E Premium ER AWD
Occupation
Tech
Country flag
“Our dealers can do it, but the standards will be brutal,” Farley said. “Their business will change a lot and there will be a lot of winners and losers and, I believe, consolidation.”
This line is powerful. Like in anything else, the proof is in the pudding.
 

COACH CHRIS

Well-Known Member
First Name
C
Joined
Aug 12, 2021
Threads
13
Messages
147
Reaction score
198
Location
NJ
Vehicles
Mustang Mach-E AWD Select
Country flag
Down for some "consolidation". But god it must be weird to be a dealership these days, having corporate essentially call you out from across the room.
 


IMDIDOC

Well-Known Member
First Name
Alex
Joined
Apr 26, 2021
Threads
8
Messages
149
Reaction score
168
Location
Buffalo NY
Vehicles
2021 Mach-E FE, 1970 Z-28 RS Original Owner
Occupation
Optometrist
Country flag
New York State, for example, has its Franchised Motor Vehicle Dealer Act (see, NY Vehicle and Traffic Law, Title 4, Article 17-A), which prohibits any automaker from possessing ownership in a dealership offering its vehicles. Tesla opened 5 in the NYC area, and worked out an agreement to keep them open by agreeing that any new dealerships would be franchised. Of course they had no intention of doing that. Thus we have auto dealerships that can add fees and differ in service abilities.
 

pacman7474

Well-Known Member
Joined
Oct 26, 2021
Threads
11
Messages
138
Reaction score
187
Location
USA
Vehicles
Mach E
Country flag
Sarcastic our serious? I've seen lots of ads on various websites, etc... most were a year or two ago. Here are some.
I was actually serious, but I guess I've been living under a rock or something.
 

jlauro

Well-Known Member
First Name
John
Joined
Dec 29, 2019
Threads
7
Messages
1,059
Reaction score
832
Location
Owosso, MI
Vehicles
2021 Infinite Blue AWD ER Mach-E
Country flag
I was actually serious, but I guess I've been living under a rock or something.
or you somehow were not targeted as the demographic they were going after.
Some of the ads are fairly entertaining (especially the vs ones), you may want to watch them.
 

pacman7474

Well-Known Member
Joined
Oct 26, 2021
Threads
11
Messages
138
Reaction score
187
Location
USA
Vehicles
Mach E
Country flag
or you somehow were not targeted as the demographic they were going after.
Some of the ads are fairly entertaining, you may want to watch them.
Yes, thank you. I went through all that you posted.
 

MellowJohnny

Well-Known Member
First Name
Christian
Joined
Nov 16, 2021
Threads
20
Messages
357
Reaction score
454
Location
YYZ
Vehicles
2022 Mach-E Premium AWD
Country flag
New York State, for example, has its Franchised Motor Vehicle Dealer Act (see, NY Vehicle and Traffic Law, Title 4, Article 17-A), which prohibits any automaker from possessing ownership in a dealership offering its vehicles. Tesla opened 5 in the NYC area, and worked out an agreement to keep them open by agreeing that any new dealerships would be franchised. Of course they had no intention of doing that. Thus we have auto dealerships that can add fees and differ in service abilities.
The loophole will be the definition of "dealership" - if the new model is BOPIS (buy online, pickup in store) and that store merely prepares the car after shipment + provides electricians & light mechanical work as after sales service, is it still a "dealership"? Maybe after care is a separate business and operates solely as a garage.
 

P. T. Magoo

Well-Known Member
First Name
John
Joined
Dec 29, 2021
Threads
3
Messages
297
Reaction score
415
Location
Petersburg, MI
Vehicles
'15 Volt, '22 MME Ca Rt-1
Occupation
Physical Therapist, Freelance Trombonist
Country flag
“Our dealers can do it, but the standards will be brutal,” Farley said. “Their business will change a lot and there will be a lot of winners and losers and, I believe, consolidation.”
Not a big fan of consolidation.

To me this sounds like terrible news.

Instead of driving 7 miles to my small dealership that's always treated me well and thinks of me as that loyal customer from a few miles away, I'll be driving 40 miles to a dealership that will see the address on my intake form and think "Redneck from the styx. Let's see how much ADM we can soak him for."
 

rcechinel

Well-Known Member
First Name
Rod
Joined
Dec 30, 2021
Threads
2
Messages
476
Reaction score
443
Location
Atlanta
Vehicles
2022 Mach-E Premium ER AWD
Occupation
Tech
Country flag
Down for some "consolidation". But god it must be weird to be a dealership these days, having corporate essentially call you out from across the room.
Yeah, I thought the same. It's antiquated, but those dealers paid a lot for their franchises, equipment, buildings, etc.

 

 
Top