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Ford Authority

Ford CEO Jim Farley Wants 100 Percent Digital Sales, Fixed Prices

As Ford prepares to split itself into two distinct entities – Model e, which will focus on EVs, and Ford Blue, which will handle the ICE side of things – Ford dealers have also been asked to specialize in one or the other, or even other parts of the company’s business as soon as next year. As Ford Authority reported in early March, the forthcoming reorganization may also require that dealers sell EVs at fixed prices  with zero physical inventory in scaled-down spaces. Now, Ford CEO Jim Farley has given his strongest statement yet indicating that this will indeed be the way that FoMoCo dealers do business at some point in the future.

“We got to go to nonnegotiated price, we got to go to 100 percent online,” Farley said while speaking at the 2022 Alliance Bernstein Strategic Decisions Conference. “The vehicle, there’s no inventory, goes directly to the customer, 100 percent remote pickup and delivery. But then we have this opportunity to use our physical presence to outperform them.”

Farley’s comments indicate that Ford will indeed continue to shift more toward online sales and fixed pricing, which has been expected for some time now, but his last sentence also reveals that the automaker plans to leverage its dealer network as an advantage over some competitors like Tesla and Rivian, which only sell direct and do not operate any physical dealerships – only locations that service those vehicles and offer test drives.

This concept isn’t entirely foreign to Ford, which has taken online reservations for a number of recent products, and is already selling the Ford F-150 Raptor and the Ford Mustang Mach-E EV crossover directly to customers in China. Additionally, as Ford Authority reported last week, all Ford dealers are expected to offer pickup and delivery service as soon as next year.

We’ll have more on Ford’s efforts to retool its dealership experience soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

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.

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Comments

  1. Greggt

    Death for the Ford dealerships, so sad!! Ford needs to do something with this guy before he totally destroys the company.

    Reply
    1. Tom kennen

      Agree. What happens if my truck is totaled,stolen,or the motor blows up? I can’t just go buy a new one? I need to order one? So,what do I do in the mean time? I guess the answer is simple. I buy something else that day. Bad idea in my mind.

      Reply
    2. WillH

      More than just the dealership, it will be the end of Ford. They are wanting to go to an order only model as well. Which with ultimately can sales for Ford. Most of the Ford customers that know and have dealt with usually do not want to wait for thier vehicle to be built. It will ruin Ford and end the F series reign as top truck. And at the service level. The warranty is not going to mean anything if there is no dealership to do it. If they can’t sell it, the dealership is not going to be warranty center. Sounds like the CEO is a pencil pusher, who obviously does not know anything about the real world or the customers. Ford dealership I’ve worked at been family owned for over a hundred years.

      Reply
  2. GaryB

    I agree with the 100% online MSRP only model. Greedy dealerships tacking on surprise ADM and overpriced useless accessories (im looking at you $700 charge for “nitrogen” in the tires in an off roader). I dont agree with splitting dealers between electric or ICE though. Not enough room in my small town for two ford dealers. Itll get to you having to go into the big cities to find an EV dealer or get service for your EV. That is not going to inspire country bumpkins like me to bring an EV home.

    Reply
    1. Ed Witt

      Not sure there would be two dealers ….just one with two ways to buy.

      Reply
    2. Walter Raulerson

      I hope you told that guy stick it when they tried to charge $700. My dealership charges 0.

      Reply
    3. WJ

      So greedy manufacturers can set their pricing just as high as the current dealers are doing using “market adjustments”. If you want a Ford step up and pay whatever FOMOCO decide they want to charge. Looks like the China model is taking over the US at all levels

      Reply
  3. Joe

    Wait till customers mess up their orders and are missing equipment that they thought was standard and then not taking delivery. They now have to re-order and take months more since there is no dealer stock.

    Reply
    1. Yora_Nidiot

      Couldn’t agree more, Joe! I’ve test-run an online order. You drop one
      package and pickup another, lose one thing to gain something else.
      .

      Reply
    2. WJ

      Do not think you are going to be able to “reject” delivery. Lawyers will see to that in your purchase contract

      Reply
  4. Blueoval Ralph

    Another Farley Wet Dream! He’s on Another Planet!

    Reply
    1. Everyday Patriot

      Buy something else.

      Reply
  5. Mark B

    Robert, well said. I agree with you 100%. This must be done for the company’s survival and vitality in the future. Most younger customers are already living in this world, heck, many of us old farts are also.

    Reply
    1. Joe

      65% of the buyers are over 40. The yound folks can’t afford the average payment of $829.00 on a Mach E.

      Reply
  6. Francois

    That’s too bad. I really do enjoy the negotiation process. In over 35 years of car purchase experience I have NEVER paid sticker for any car.

    Ever.

    That includes the Shelby GT350 I bought brand new in 2020.

    Especially in this day of every dealer and their brothers advertising significant discounts in Autotrader and all the rest of the online sites. You can easily pit dealers a couple states away with the local guys. It’s how I got a discount on the Shelby, I ended-up buying in the next state. The leisurely 2 hours interstate ride was well worth it to get the exact combination of color and options I wanted + over a thousand bucks discount to boot.

    I will definitely miss that.

    Reply
  7. David Dickinson

    I predict this model will fail. We live in unusual times where the manufacturers have the upper hand. That is normally not the case, and it will fade over the next year or so. Except Tesla, the rest of the EV makers will be gone in 2 years so what they say they will do is irrelevant. A coming recession spells a price war to get rid of those thousands of 99%-built vehicles in storage waiting for microchips which will flood the market when consumers have the least buying power. Ford will not toe the line on price.

    Reply
  8. imanjunk

    No matter the brand I will never buy a car if I can’t first sit in it and test drive it…period. So they better have one on hand at the dealer or some location close by.

    Reply
    1. Yora_Nidiot

      ………….. Right ON!

      Reply
  9. Howdoesitfeel

    There’s seems to be a bit of misunderstanding concerning the Dealership model with respect to legacy Auto manufacturers and how this news affects that. Forgive me if I’m explaining something that everyone knows. But, dealerships operate legal cartels that disallow new dealerships from opening in certain areas or within certain distances to other dealerships. Tesla actually tried suing ( I know in Michigan specifically, among other states, where I live-to be able to sell online) because you can’t or couldn’t sell new cars outside of a dealership and you can’t open up new dealerships in most places, because of the laws. These laws don’t affect used cars which is why used car lots are much more common. This has a net negative benefit to manufacturers and consumers who would rather have the option to purchase a car at a flat readily accessible price with no strings or hidden fees attached. The dealership owners lobby pushes back on this every time there has been an attempt to change the current model and if you’ve been paying attention to Congress they aren’t exactly known for their efficiency or effectiveness. I’m not sold on requiring dealerships to pick one type or the other in terms of ICE vs EV because the existing laws would create a situation where it can become an imposition on those who want to buy one or the other type and can’t easily get to a dealer that sells that type. I’m a millennial and I’m not entirely sold on the EV thing, I think it mostly operates as a way for manufacturers to nickel and dime customers for features that were standard or at the very least transferable. Direct to consumer and online model is better, the fact that Farley is adapting shows why Ford has been able to stay on the cutting edge with respect to technology, design, and market share. Remember they’re the only company not to take money from the ’08 bailout.

    Full disclosure, my father is a Ford retiree. I have no other affiliations with the company, though.

    Reply
  10. R. Walker

    If there are no dealerships, what will people do when they want a new car? Sell your used vehicle on your own? You won’t be able to trade it in correct? No dealership.
    What if I am looking for a nice used car? Will Ford maintain certified used car lots?

    Reply
  11. David Middleton

    Ford will go by the wayside like pontiac,Oldsmobile and mercury people want to look at car drive them I understand greedy dealer markup but you got to remember one thin you are the customer they need you you don’t need the I tell them that right off the bat also I tell them there is 500 dealers between here and Mississippi River on will deal with me if they dont I will walk away the ford dealer in my home town Kingsport Tn has found that out on several occasions I will not even buy from them because of their stupidity but they are 5 more for dealers in this are to but I my self and not buying sight unseen that may be ok for people that want these ev cars but for me no inventory on lot no sales from me I been a ford truck man for years but I got to ram or gmc if ford does this and alot of people I know have talked about this and they say the same .

    Reply
  12. Mrx19

    Don’t forget the millions on the line for the huge dealer groups. They will spend it on lobbying and lawsuits that will take years to work their way through the court system. Combine that with the large number of states the have laws forbidding manufacturers selling direct and the coming recession and Farley has a long road ahead of him.

    Reply
  13. Dee Hart

    If that jackass thinks I am going to plunk down $75,000 to $100,000 on a vehicle sight unseen, he is dumber than I thought any executive could be…

    Reply
    1. Yora_Nidiot

      .. your logic is rare, Dee!

      Reply
    2. Mark A Hoffman

      I agree!!!

      Reply
  14. MIKE BARANOWSKI

    This guy is on drugs ! The only and I mean the only reason he wants to do this is to make more money for the shareholders, oh and increase the absolutely obscene salary he receives. Now here is the thing, who is going to be hurt by this ? The poor consumer. Sure there will be no negotiations on the inflated set price ! Only morons pay sticker price!!!!!!
    I cannot believe how many dopes here actually think it’s good to be fleeced !
    He will eliminate competition, which helps the consumer. What a sick world!!!

    Reply
  15. R. Walker

    If there are no dealerships, where does one go to trade your vehicle in for a new one?
    Where do you go to buy a Ford certified used car?

    Reply
    1. R. Walker

      Sorry for the repeat. Disregard

      Reply
  16. Rob

    Well debated by individuals with actual intellect on the subject! Much better than the usual class wars bashing anyone who has made something of themselves. Bravo Gentleman!

    Reply
  17. Kenny D

    Well, we will see what come to pass in the Near future, Meantime, I’am OUTTA Here!! Too much Schooling from someone who seems to “KNOW IT ALL”…. Asta La Vista, BABY!!!! Gonzya….

    Reply
  18. John Kerr

    Ford definitely overprices their msrp stickers. If Fomoco sticks to that msrp sticker then the customer will definitely will be the looser in the long run. Ford and other manufactures need to learn that all customers are not doctors who can afford 100000 vehicles.

    Reply
  19. AugustineMendoza

    When you do anticipate Ford implementing the online orders for EVs? Will it start this August with the Mach-E orders?

    Reply
  20. Joe’s Wrong

    Gotta love the effort by “Joe” and his pro-dealership stance! 🙂

    Reply
  21. Mike

    To me, Farley is instilling dealerships to go EV, or die. Just like what Cadillac has done, as a way to reduce the total number of dealerships.

    Reply
  22. Ray e

    Whoever agrees with this must have never been in sales , we have been the front line forever , and know they want to wipe us out ! But if they fail they will need us again! I hate this world

    Reply
  23. Truzak

    So how does one test drive a vehicle if there is no inventory? If there is no dealership?

    I waited 9 months to purchase a vehicle because I was not able to test drive one because none were ever available at a dealership.

    Reply
  24. Michael Torres

    I believe Mr. Farley is correct and companies need to cut out the middleman and games dealership play with over MSRP pricing as investors flipping vehicles for profits destroy the ability for a loyal Ford buyer to afford vehicles they have waited to purchase for years. Ford knows if they upset their loyal customer base they could lose them forever and that’s not a risk they want to take. Today you have to pay $25,000 over MSRP to buy a new corvette and $20,000 to buy a Cadillac Escalade. Think of all that money needed to run a dealership we as customers can all save on our final price paid.

    Reply
  25. Rant Rater

    It’s neat that Henry Ford started the early workings of what a dealership is. And the changes are turning away from the model.

    As long test driving is possible, I’m all for it

    Reply
  26. Robert Logsdon

    The wholesale/retail system for autos is an outdated dinosaur of capitalism. I welcome set pricing. Why should I have to negotiate with a misleading salesperson? And the dealership setup is also outdated.

    Reply
  27. Chris

    Wow. I’ve never seen a thread with so many people suffering from psychological problems. The long-winded responses that drone on are wacky, wacky. Do these people realize we don’t have time to read all that BS? Keep the comments short and we’ll read them. Yes, Ford is in big trouble with Farley.

    Reply
  28. Mark A Hoffman

    This guy will put ford out of business!!! I know my generation likes to go into the dealership and test drive and get the hands on feel along with the negotiations and people interface. I will never by online without hands on. That’s why Carvana will ho under before ling!!!

    Reply
  29. D.M.

    Just dandy, before you do some more dumb junk, could you just build my bronco? Been waiting over two years now… any time now would be great.

    Reply
    1. A J P

      Hey D.M.
      I’ve been waiting 2 years for my Bronco and finally just got a text from Dealer..
      It’s ready, it’s here, it’s beautiful…
      BTW.. Tacking on 10% over Sticker…
      Be Careful What You Wish For!!!

      Reply
  30. LWAP

    Tesla tried this. That’s why they can’t sell vehicles in Michigan. You know, Ford’s home state! Carcar is in over his head.

    Reply
  31. A J P

    Hey D.M.
    I’ve been waiting 2 years for my Bronco and finally just got a text from Dealer..
    It’s ready, it’s here, it’s beautiful…
    BTW.. Tacking on 10% over Sticker…
    Be Careful What You Wish For!!!

    Reply

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