FoMoCo CEO Jim Farley has made it clear in recent months that he sees a future for the automaker and Ford dealers alike that involves online sales and fixed prices, essentially ditching the ages-old model of stuffing lots with inventory and selling those vehicles at a discount as the company asks dealers to specialize in one area amid its major reorganization. However, not everyone is on board with such a move – many Ford dealers included – even amid heavy markups and other tacked-on fees that have given the automaker a proverbial black eye among consumers. Regardless, it appears that much of the future remains up for debate, according to Automotive News.
After discussions with around 300 stores in its dealer network, Ford has reportedly ditched plans to offer EV buyers a seven day return option, and will also reportedly allow dealers to continue setting prices and operate physical storefronts. However, FoMoCo also intends to move forward with its plans for EV dealers to operate with no on-site inventory, setting non-negotiable prices, and allowing customers to complete their purchases online. Ford’s EV program is set to be fully revealed in September and take effect in 2024.
“We don’t have people in a room as bobble heads nodding in agreement,” Pennsylvania-area dealer Richard Bazzy explained to Automotive News. “It can be spirited, passionate, but absolutely everybody’s willing to be adaptable. We’re focused on the customer experience. That drives everything.” “The dealer will set the price,” added Ford Model e chief customer officer, Marin Gjaja. “The goal is to eliminate one of the biggest sources of dissatisfaction for customers right now around feeling not sure they got a good deal and feeling like they need to negotiate.”
It’s a somewhat confusing situation, but if nothing else, it’s clear that negotiations are still ongoing regarding these hot topics. At the same time, dealers are asking Ford to invest in demo vehicles so that customers can test drive before they buy, as well as EV training programs to educate staff on new technologies. Many of the program’s finer details have yet to be finalized, though it’s clear that physical dealerships aren’t going anywhere.
Farley’s comment regarding going to “100 percent online sales” was about “a single point of entry, whether you’re physically in a dealership or at a home,” Ford Blue Vice President of sales, distribution and trucks Andrew Frick told Automotive News. “We want to leverage their physical existence and leverage their service capacity.”
We’ll have more on Ford’s new dealer business model soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.
Comments
Sure, keep EV supplies deliberately low, sell direct at MSRP, but still let dealers order vehicles to sell off their lot, at what ever price they can get for them ( which is probably over MSRP, if you want it ). That makes sense. That Farley guy does not know what he is talking about, shoots his mouth off before he has firm plans, then his staff has to spin their wheels afterwards to detract his statements, and calm everyone’s fears. And this guy is running a corporation like Ford? Makes me loose faith in Ford ( with everything else that is going on in that corporation, like massive recalls, etc. ).
This Price…. Wait NO This Price…. Wait NO This Price…. Wait NO…… Just Get whatever you can get the Unsuspecting ILL informed DUMB Public IDIOTS to Pay for it??? Jesus H F O R D are you DUMMIES EVER GONNA Figure it Out. You want or would LOVE to have your Loyal Customer’s to KEEP Returning for More Business????? You’s Best get you “STUFF” Together or your gonna Push your Customers Away fro F O R D!!! Like the old saying goes…… If “YOU” Don’t TAKE CARE OF YOUR CUSTOMER…… “SOMEONE ELSE WILL”!!!! Just start getting things DONE, and Start Building “QUALITY PRODUCT’S” Like the OLD MODEL A F O R D! Just Make Things RIGHT!!!!
Dealers are already getting away with $10k+ markups on Broncos, for example. It is the idiot public too willing to part with their cash ( no bank will loan ADM) that continues to fuel this debacle.
Sure. Saturn gave uo on its fixed pricing, as well asvtheir all plastic body panels and home delivery, but savvy buyers will switch dealers or brands when presented with market adjusted pricing.
Ford has proved that it is unable to honor all of the hype it creates with products, like the Bronco orders, many of which are close to two years old already. Interest have gone up, price increases have been announced, but no product being delivered. Instead of having three Ford products in my garage, I have one Ford and two Nissans and I’m trading the Bronco Sport (disappointing). But hey I love all the changes you’ve made to vehicles we can’t get.
You hit the nail on the head. I couldn’t have said it better. I prefer to buy off the lot at least I can drive it home that day. If I have to order it on line it might take forever for delivery.
The manufacturer who consistently delivers top level customer service and a reliable build quality will be the go to choice… FORD needs to work on both of these before they launch themselves off into the brave new future that Farley likes to talk about. If the F150 ever loses its shine…. the FORD company could be over and done with. I do agree with Farley on consolidations… there will be fewer companies down the road…I hope FORD is one of them.
Ford is heading for a Brave New World. I know Tesla has lead the way, but its still risky business. I deal with the same guy at the same dealership and am happy with how I am treated both in price and overall service. Not sure I want to lose that.
Ford dealerships can go to hell!!! Completely raping customers with ADM and all kinds of stupid add ons! FORD get rid of your corrupt stealerships! We dont need them! Thank You
I recently went to a Ford dealership that had a bronco on the lot. Sales rep said that vehicle is $10,000 over MSRP. Seen a Ford Maverick truck on the lot. Sales rep said oh that vehicle is $6,000 over MSRP. I just left. Never paid over MSRP and I’m not going to do it now. Nice looking vehicles. But not for more then what they are worth.
I have been a loyal Ford customer for at least two decades. My family has a great relationship with Jack Kissee Ford in Claremore,Okla. It seems Ford has not considered its loyal customer base the local dealerships are responsible for.My loyalty is to our dealer first and and to the brand second.It might be a good idea that Fords top management get on the ground and visit local dealerships to access there customer wants and needs,Business works best from the ground up rather than from the top down.