Mach1E

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Yes sir...Ford has been cutting allocation to the bone for dealer stock. They have made it clear that we will never go back to the 90+ day supply of inventory that we used to have. Made to order is the only way.
Not sure that they “never will.”

But pretty clear that they “never want to.”

Inventory sitting on lots brings pressure to increase factory rebates. And that’s money straight out of Ford’s pocket.

But when supply and demand for vehicles normalize. Months of inventory may be unavoidable.

 

MyLittlePony2022

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I think both Ford and the dealerships have a long way to go. When I say dealerships, I mean of all car manufacturer dealerships like Chevy, Toyota, Mazda, etc.

Ford needs to work to improve quality and fix the issues (warranties, recalls, issues). They can improve. Work to keep customer happy after they buy the car. You spend less money to keep customers than trying to get new ones.

The dealerships need to stop gouging and give good customer service. Maybe this and world piece will happen at the same time. I am not holding my breath.

I like the idea of ordering on-line now that MSRP seems to be the new normal and getting discounts (Costco, negotiations, etc.) seem to be going away. My dealership did NOTHING but at as an interfering "intermediary" who just processed the final sale. I did all the research. I know I knew more about the car and how things should be processed then the dealer. Thanks Mach-E Forum. 👍 Maybe I am the exception and people still need a salesperson to help them research the car. I would welcome buying the car online and just having the dealer process the financing without ANY chance of modifying the cost or adding on to the cost.

As far as getting rid of the dealership model, who will fix the cars? Not sure I am happy about taking my car to Firestone, like Polestar is doing as their service model. With less dealers you may be stuck with only one in your area, as some people are. If they really, really suck, how does that work? The free market will get rid of too many dealership. If I could figure how to make them better, I would be a very rich consultant. ;)
 

timbop

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More than 20 million people live in this map area. There are 16 Tesla service centers to service that population. That model is not one I want to see emulated.

1662777887669.png
 

DBPNW

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No, they are franchisees.
uh, last I checks pretty much every dealer group and every dealer with the exception of a few are c-corps (aka corporate entities)

Just because they are a franchise owner, doesn't mean they are not corporate entities. I think the differentiation you seek is OEM v dealership or Franchisor v Franchise or whatever. But their corp status is independent of their franchise status.
 

Guss-E 2021

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Yes sir...Ford has been cutting allocation to the bone for dealer stock. They have made it clear that we will never go back to the 90+ day supply of inventory that we used to have. Made to order is the only way.
I've underwritten financing for a number of large New England Ford dealerships. I've seen first hand what you are talking about when analyzing the financials. You guys are saving a ton on floorplan costs. And though not great from a labor standpoint, staffing needs have been less as well further cutting costs.

Is that what you are seeing at your dealership as well?
 


Mach1E

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... then those dealers increase their prices by that same $2,000.
Right now it is the dealers getting all that extra profit. They’re averaging $6800 per new vehicle sold.

I remember when the “average profit” per new vehicle sold was actually a NEGATIVE number (around 2009).

Easy way to cut costs by $2000? Dealers drop prices $2000.

But as long as people have been brainwashed to believe that “MSRP is a good deal,” the dealerships will continue to get away with huge margins.
 

new to mach-e

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Ford dictates and charges the delivery fee to the dealer/consumer.
I hate dealers but how are they supposed to reduce transportation costs when vehicles get delivered by Ford to the dealers?
It's like asking the gas stations to reduce the price of the gasoline, wait....somebody asked that already! 🤣
 

Mach1E

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Ford dictates and charges the delivery fee to the dealer/consumer.
I hate dealers but how are they supposed to reduce transportation costs when vehicles get delivered by Ford to the dealers?
It's like asking the gas stations to reduce the price of the gasoline, wait....somebody asked that already! 🤣
The solution isn’t cutting costs, it’s simply just asking dealers to lower the price.

They are making record profits, literally thousands more per vehicle than “normal.”

But they’re not going to just give away profit when they don’t have to.

If gas stations had triple the profit margin right now, I would ask them to lower the price too!
 

RedStallion

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I don't see the logic. All that is needed to stay competitive with Tesla is to be able to sell all the cars being produced. Dealers obviously want to sell the cars at the highest price market can accept. Why would they lower the price by $2000 if they can sell at higher price? It's a simple supply and demand math.
 

Mach1E

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I don't see the logic. All that is needed to stay competitive with Tesla is to be able to sell all the cars being produced. Dealers obviously want to sell the cars at the highest price market can accept. Why would they lower the price by $2000 if they can sell at higher price? It's a simple supply and demand math.
“Stay competitive.”

They’re thinking past the next couple years.

The suggestion in the article was direct to customer delivery.

Right now? Yeah with demand outstripping supply, no issues. But if they can cut out unnecessary costs, everyone wins.
 

Fixbear

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No one has mentioned GM's announcement about Their new SUV starting at $30,000. Equinox is supposed to be equal to the MME with a starting range of 250 miles. Shipping has started. I noticed that they waited till Ford published the new price list for the push release.
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dbsb3233

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FWIW, from a top down view of the industry, I agree with Farley on this.

Distribution and sales is high cost low value. To compete with direct sellers, costs have to come out because too many people are getting paid for little or no value add between when the car leaves the factory and when the buyer drives it away.

One of things I think will happen is that over the next decade, there will be a lot less dealers. Probably half will go away as we transition to EV's.

From a service standpoint, dealers can be a plus, but I don't need 12 within a 30 minute drive as is the case now.
Agree that sales costs and overhead are higher than they need to be.

But ultimately the products will sell at market price. It's just a matter of who's getting more of that profit - Ford, or it's dealers.
 

kennethjk

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Agree that sales costs and overhead are higher than they need to be.

But ultimately the products will sell at market price. It's just a matter of who's getting more of that profit - Ford, or it's dealers.
I have an idea. They should make a better product and they can cut $1k off of annual warranty costs
 

Mach1E

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No one has mentioned GM's announcement about Their new SUV starting at $30,000. Equinox is supposed to be equal to the MME with a starting range of 250 miles. Shipping has started. I noticed that they waited till Ford published the new price list for the push release.
1662848540065.png
“Equal to the Mach E” in what ways?

Zero chance it’s gonna compete in terms of features, quality and performance at a $30k price point.

Looked at the stats….. the “fast one” is 0-60 in 6 seconds.

It’s an economy car. And that’s fine, people need more options.

 

 
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