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.
Yellow isn't everyone's cup of tea, but it looks great here.
Complete with a push bar.
It remained with the original owner until earlier this year.
Can be paired with every paint color except black. Obviously.
Matching green and everything.
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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.
Not sure there would be two dealers ....just one with two ways to buy.
I hope you told that guy stick it when they tried to charge $700. My dealership charges 0.
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
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.
They miss a option or option package they wanted. They think some things are standard and end up not ordering that option. Customers are not experts, they will make mistakes.
Dealerships will probably "help" the customer do the ordering for a "small fee" Don't think they aren't already figuring out ways to stick it to the customer. They also could get credit for the sale because of dealership zones and watch service fees sky rocket. Ford will probably make lots of options standard equipment so there are less options.
Dealers have always known how to milk every teat on a cow. I think they'll find a way to survive.
Do not think you are going to be able to "reject" delivery. Lawyers will see to that in your purchase contract
Another Farley Wet Dream! He’s on Another Planet!
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.
65% of the buyers are over 40. The yound folks can't afford the average payment of $829.00 on a Mach E.
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.
I mostly agree. Your pre-requisites and homework were all necessary in the pre Internet / mostly local shopping days, I've done all of the above several times.
These days, waiting until initial frenzy is satisfied is still more necessary on some models of course. Getting any kind of real discount on the red hot / limited production GT350 in 2016 would have been quite the feat.
For most cars though, the ability to pit dealers against each other nationwide = significant savings no matter what if you play the game. The dealers know it and hate this fact: There's always at least one somewhere who feels compelled to compete on price, is willing to discount, and next thing you know it's an online race to the bottom (Of profitability).
That's my wedge.
I got over $3,800 off the sticker and 0% financing on our 2019 Edge ST. That was the first year for that car, and it was selling well. We did get it in December and that helped to get Ford subsidized financing but it was still first model year on the car. I did 0 homework on that one outside of shopping online for a few weeks. The online prices varied quite wildly and that was my leverage. That one was bought in my local metro area. Pretty awesome deal.
They had my GT350 on the lot for 1 day when I was fortunate enough to find it. It wasn't even cleaned-up yet. I snagged it / gave them money before my competition found out it was available and with a discount to boot. I had to fight to get them to honor the discount once they figured out what they had but I did get it. On their part they turned the car out of inventory in less than a week which is worth incentives to them. A win win.
Mach E still do need service, brake fluid flush every 3 years, cabin air filters at 20K, transmission fluid at 150K, Coolant replacement at 200k, tires cost more. Less, but you will spend money on them. Also as the battery ages the range will be reduced where a ICE vehicle will still go as far.
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.
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.
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?
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 .