mobile-menu-icon
Ford Authority
Sponsored

Ford Dealers Face New Standards Designed To Curb Retail Order Abuse

Sponsored

As is often the case in life, success typically comes with additional problems, and that’s precisely what Ford is facing these days with its bevy of desirable products. While high demand for new vehicles is always a good thing, ongoing supply chain issues are limiting the automaker’s production capacity, which is, in turn, leading to some shady practices by a number of Ford dealers. One of those problems arose when the 2021 Ford Bronco launched after the automaker took over 160,000 reservations for the SUV, as some Ford dealers were creating reservations for non-existent people or those that didn’t intend to purchase a Bronco to bypass the allocation system, or to generate additional dealer stock. Now, FoMoCo is implementing a stricter name-match policy across the board, according to a dealer incentive bulletin recently seen by Cars Direct.

Starting in June, Ford will increase its name-match threshold to 75 percent, up from its current requirement of 70 percent. What this means is that 75 percent of the reservation-order conversions dealers take for new vehicles must match the name of the person that takes delivery of that vehicle. Additionally, Ford is also eliminating a current provision that allows dealers a period of 120 days from the “order receipt date” and “dealer delivery date” to earn a pass on this policy.

If dealers appeal one of these non-matching sales, the automaker will now take into account the sale date of the vehicle rather than the order date, and and violating the revised policy now comes with more serious penalties in the form of a one-month “total allocation forfeiture” and a third violation resulting in “expulsion” from Ford’s Name Match and Integrity Policy altogether. Regardless, Ford also mentioned in the memo that this won’t be the last time its name-match policy changes, as it plans to “increase to 80 percent after the launch of 23MY vehicles.”

This change comes as Ford moves toward a major restructure in its business that will separate it into two entities, one focusing on EVs and the other centered around ICE-powered vehicles. Ford dealers will be asked to specialize in one of those areas or the automaker’s Ford Pro commercial business as soon as next year. As dealers continue to mark up hot new products like the Ford F-150 Lightning (much to the ire of the automaker and customers), those same dealers also also facing stiff fines for selling demo units early and may soon be forced to sell EVs at fixed prices.

We’ll have more on Ford’s dealer standards soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Sponsored

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

Subscribe to Ford Authority

For around-the-clock Ford news coverage

We'll send you one email per day with the latest Ford updates. It's totally free.

Sponsored

Comments

  1. Scott

    Had a Ford dealer in Raleigh, NC quote me $15,000 over MSRP for a Transit van. Maybe Ford needs to come down harder on their dealers.

    Reply
  2. Brad

    Totally off topic, but where did those headlights come from? That’s a wildtrak in the photo, but has headlights that are kind of a combo of the base and signature lights. The slash doesn’t go into the circle. I kind of like it

    Reply
    1. Dee Hart

      That’s the Ford F-150 Lightning, their electric truck…

      Reply
  3. Arcee

    This new policy will only hurt customers. Dealers will be forcing customers to enter into unreasonable agreements to purchase ordered vehicles. Terms such as nonrefundable deposits, pricing subject to change, unspecified timeframe for delivery, etc.

    If Ford is going to mandate that 80% of ordered units get delivered to the customer that ordered them, they need to establish some assurances. Set a specific delivery date for the customer. Lock in pricing for the customer at time of order. Build in remedies for the customer if those guarantees aren’t met… essentially establish service level metrics for the order. “You will receive this vehicle exactly as configured by this date at this price. If Ford is unable to meet this a discount in the amount of $XXXX will be applied to the final price of the vehicle.”. Incent the customer to keep their order, at the same time incent Ford to commit to a specific delivery date.

    Reply
    1. SB

      If they offer the vehicle at MSRP, I’ll jump through a whole bunch of hoops.
      If they just have all their staff reserve vehicles to put them on their lot at 5k+ ADM then they can lose their allocation and I’ll go somewhere else to buy from a reputable dealer.

      I personally know a dealership employee who ordered 3 (him, his wife, and his son) strictly in agreement with the dealership that they would get 1/2 the ADM on sale if they would order and then give up their order to the dealership.

      Reply
    2. Dee Hart

      That’s why I went to GMC… I was looking at a 2022 Explorer ST but instead bought a 2022 Acadia Denali V-6 AWD… I do not like dealers playing games. I got my vehicle in 1 and a half weeks at sticker price.

      Reply
    3. lou rahhal

      I think the only reason this is working now is because of chip shortage and leasing. People HAVE to order a vehicle if their lease is coming due so they can have another one available. The problem with this is the customer is getting screwed. Leases are higher than they have ever been. Ford controls the whole situation, they can raise prices, very little rebates, basically dictate what they want to sell. I still prefer to go to a dealer and look at inventory to see what vehicle looks like with certain color combos, etc.

      Reply
  4. Mike

    People need to stop buying anything over msrp. No one is forcing anyone to buy these. While it sucks that dealers are doing this, they haven’t had their normal inventory for almost 2 years now. It’s hard to make money when you have nothing to sell. Add to that, people buying these cars and flipping them for a good profit and I can understand, to an extent, why they want a piece of that. Hell, everyone that I’ve heard of that put there $100 down for a Lightning, just did it in hopes of getting one to flip. It’s only 5 people, but none of them want the appliance, they just think they can make a quick $10-$20k, and they’re probably right. Needless to say, there wouldn’t be dealer markups or flippers, if idiots didn’t buy them. Then again, that probably isn’t a lot of money to the people that are buying them. Oh well

    Reply
  5. Victoria Hinze

    How do I contact FORD regarding my Bronco being delivered! I gave my deposit in March of 2020 and have been notified by FORD that they have the order this last February but I have heard nothing since!
    My dealer is useless!

    Reply
  6. Chris

    Stop dealers from stealing reservation holders reservations by adding outrageous ADM!

    Reply
  7. Michael Bol

    Never pre-order a untested vehicle, get the model after a few years. And with dealers making these shady deals, is it any wonder Ford stock is down again? Who trusts them.

    Reply
    1. lou rahhal

      👍

      Reply
  8. Bill

    went to look at and buy a new 2 door bronco, MSRP was $33k, with additional dealer markup and the “Dealer Installed Options” it was $78k – for an F’ing bronco. $30k ADM

    Reply
  9. Rick

    Ford…and all manufacturers should just work to kill state auto franchise laws…that would solve the whole problem. As long as dealers are insulated from other channels to the customer, they will work to maximize the value of their government provided protection.

    Reply
  10. Bob

    Dealer here in Shelbyville Tennessee wanted 20,000.00 over MSRP for new Bronco. No way!

    Reply

Leave a comment

Cancel
Sponsored