Small Ford Dealers To Benefit From Allocation System Tweaks

February 8, 2024 12:24 pm

The past few years have been rather tough on Ford dealers, as those entities have dealt with near-record low inventory levels, a struggle to secure new and used inventory, and the controversial Model e Certified program, which is now required for dealers that wish to sell EVs. While CEO Jim Farley recently met with a group of Ford dealers at this year’s NADA Show and noted that he’s open to feedback, some still feel a bit left out in the cold, regardless, after the automaker didn’t stick around to answer questions that some had regarding the company’s stance on EVs and other hot topics. However, at that same event, FoMoCo also told its smaller dealers that it’s going to tweak its allocation system to benefit them, according to Automotive News.

“We were missing an opportunity to engage with the dealers on their unique issues,” said Matt Atkenson, Ford’s U.S. field operations manager. “It’s just different in these rural areas. Our allocation system for decades has been based off an earn-and-turn; the more you sell, the more you get. If you’re a smaller-volume store, it’s hard to sometimes get that one-off unit to handle that specific customer.”

Now that production is ramping back up to normal levels and inventory has improved substantially, however, FoMoCo plans to tweak its allocation system and bring back an old program that benefits small dealers, specifically – otherwise known as U300 dealers, which sell fewer than 300 vehicles annually. The program will prioritize verified retail orders from these small stores, even if they don’t have any allocations at that time. Atkenson noted that the specific details of this program still need to be worked out, however, though he did note that the automaker is working to simplify and streamline its processes at the same time.

“When supply got low, we had to suspend that program, and we weren’t sure if we’d bring that back,” he said. “But now that inventory levels are getting more stable, we brought that back. There’s a co-op program they can claim money for. We’ve basically said they’re self-approved from now on if they provide an itemized invoice. They don’t need the bureaucracy from us.”

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By Brett Foote

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.