Will Dealers keep selling the Mach e or any EVs?

PilotMark

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I may be lucky but 2 of the local Ford dealers are both good. I'd rank them in the 90+%. I hear a fair amount of dealer bashing on the forum and wonder if that is just poor communication on both parties. You don't have to take the first no for an answer.
Also heard the CEO state something along the lines that all EVs would be sold on the internet going forward. He didn't go into much detail on what that meant for the dealer. Why would a dealer support a product they did not get revenue from? I don't know what Ford has planned for their EV and dealer support. We know that Tesla has no dealers.
I for one hope our dealers get to participate in the EV evolution. The closest dealer has 4 charging stations that are no cost to use. Gets me looking at all the cars I didn't buy while I'm charging.

Anyone else know what the CEO said about dealers and EVs?

 

Neil4Real

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He said he’s hoping to go to that model, but it isn’t in place yet but ordering has been closed. Who knows what the future holds when order banks reopen.

As to why dealers would support a car they don’t get revenue from - while there isn’t as much maintenace needed on them, they’ll still definitely generate revenue having their service department certified to work on them.

The margin dealers make on MME’s as it is, dealer markups aside, are insanely small compared to their ICE cars.
 

Mach1E

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I may be lucky but 2 of the local Ford dealers are both good. I'd rank them in the 90+%. I hear a fair amount of dealer bashing on the forum and wonder if that is just poor communication on both parties. You don't have to take the first no for an answer.
Also heard the CEO state something along the lines that all EVs would be sold on the internet going forward. He didn't go into much detail on what that meant for the dealer. Why would a dealer support a product they did not get revenue from? I don't know what Ford has planned for their EV and dealer support. We know that Tesla has no dealers.
I for one hope our dealers get to participate in the EV evolution. The closest dealer has 4 charging stations that are no cost to use. Gets me looking at all the cars I didn't buy while I'm charging.

Anyone else know what the CEO said about dealers and EVs?
He said he “wants to.”

Of course he does. More money in his pocket.

Reality is he “can’t” due to many states laws.
 

GreaseMonkey

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The issues customers have with the dealers go well beyond miscommunication or not taking the first no for an answer. The sooner the industry makes an adjustment to this broken sales and service model the better everyone will be.
 

Neil4Real

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The issues customers have with the dealers go well beyond miscommunication or not taking the first no for an answer. The sooner the industry makes an adjustment to this broken sales and service model the better everyone will be.
It isn’t even up to the industry, there are state laws that need to be changed to allow manufacturers to sell cars directly to consumers.
 


GreaseMonkey

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It isn’t even up to the industry, there are state laws that need to be changed to allow manufacturers to sell cars directly to consumers.
I’m not making a point about selling directly to consumers. Even if vehicles are sold through dealers, Ford and other OEMs can do a lot to improve the sales and service environment for customers…and give dealers the incentive to treat us well. It’s not as simple as saying customers and dealers can’t communicate.
 

Mach1E

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I’m not making a point about selling directly to consumers. Even if vehicles are sold through dealers, Ford and other OEMs can do a lot to improve the sales and service environment for customers…and give dealers the incentive to treat us well. It’s not as simple as saying customers and dealers can’t communicate.
Most of the complaints seem to be about pricing.

They could move to a “no haggle” model. It didn’t really work for Saturn, but they could try again.
 

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Most of the complaints seem to be about pricing.

They could move to a “no haggle” model. It didn’t really work for Saturn, but they could try again.
Agreed. That could be one of many possible solutions. Saturn was a horrible car with 10 mm panel gaps and shitty reputation. I’d argue that customers purchasing a special vehicle like the MME would welcome no haggle pricing and price / incentive protections without having to hire lawyers, etc. In exchange, Ford would need to increase dealer margins a bit to make it work for everyone.
 

AllenXS

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The dealer will still be needed to assist people to order online, ie help then with lesser choices.

They will also be a place of distribution/delivery.

And they will be the showroom.
I’ve heard many people say they still need to see before they buy.
 

Mach1E

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The dealer will still be needed to assist people to order online, ie help then with lesser choices.

They will also be a place of distribution/delivery.

And they will be the showroom.
I’ve heard many people say they still need to see before they buy.
See, sit in, test drive, finance, accessorize, service and of course trade in their old car.

Selling/delivery of a new car is the least of what a car dealer does.

For people who buy cars the same as they do toaster ovens, an online ordering and delivery is fine.

Others want to compare and drive multiple vehicles before choosing a favorite. Whatever the future holds, we will still need to cater to both shoppers.
 

Blue highway

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Most of the complaints seem to be about pricing.

They could move to a “no haggle” model. It didn’t really work for Saturn, but they could try again.
Seems like most of the EV startups are trying the "no haggle" price model. This does not mean anybody pays less... it's just that everyone suffers the same amount... for perspective, here are the price increases from the T company in March this year.


Price changes (without DST):
Tesla Model 3:

  • RWD: up $2,000 (or 4.4%) from $44,990 to $46,990
  • Long Range AWD: up $2,500 (or 4.8%) from $51,990 to $54,490
  • Performance: up $3,000 (or 5.1%) from $58,990 to $61,990

Tesla Model S:

  • Long Range AWD: up $5,000 (or 5.3%) from $94,990 to $99,990
  • Performance: up $6,000 (or 4.6%) from $129,990 to $135,990
Tesla Model X:

  • Long Range AWD: up $10,000 (or 9.5%) from $104,990 to $114,990
  • Performance: up $12,500 (or 9.9%) from $126,490 to $138,990
Tesla Model Y:

  • Long Range AWD: up $3,000 (or 5.0%) from $59,990 to $62,990
  • Performance: up $3,000 (or 4.6%) from $64,990 to $67,990
 

MachE Mach

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Tom Moloughney over at InsideEVs has a really nice breakdown of what it will mean for the dealers:

https://insideevs.com/news/610114/ford-modele-dealership-rules/

“The new rules for Model e dealerships require dealers to post set prices for the electric vehicles online at Ford's website. Customers can view the set pricing, complete the purchase online, and even schedule home delivery. But ultimately, it's the dealer's decision what the set pricing will be for the vehicles, and there will likely be price variation from dealer to dealer. Customers will be able to cross-shop different local dealers' prices online, and then choose the one with the lowest set price. The dealers must honor the set pricing for every purchase, and Ford will be checking the purchase orders to make sure that happens.

This new system gives the customer the option of doing everything online and completely eliminates the need to visit the dealership. Of course, if the customer prefers to visit the dealership, kick the tires and complete the purchase agreement in person, they are still welcome to do so. However, it will be for the same price they could have purchased it online from the Ford.com website, the dealers cannot change the price once it's set.”

I think this is a pretty ingenious way to keep the dealers involved while curbing the rampant ADM problem.
 

Guss-E 2021

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The issues customers have with the dealers go well beyond miscommunication or not taking the first no for an answer. The sooner the industry makes an adjustment to this broken sales and service model the better everyone will be.
Get rid of the GD sales commission model for one. Just reduce your sales staff to compensate for a bump in base salaries. Sales people should be knowledgeable and eager to sell ALL vehicles. Imagine focusing on the proper fit for your customer (as opposed to shoving the highest margin vehicles down their throats) as a way to improve buyer satisfaction, gasp.

 

 
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