Ford CEO Finally Confirms New "Agency Model"

Eoj

Well-Known Member
First Name
Joe
Joined
Dec 17, 2021
Threads
0
Messages
132
Reaction score
331
Location
Albuquerque
Vehicle(s)
21 lariat fx4
If it takes years to set this model up throughout Europe they will likely do all overseas first. So then we’re 15 - 20 years down the road before looking at the U.S. so for me an inconsequential announcement as I will likely have bought my last vehicle by that time. Can say my current dealer will not be the one for my next vehicle.
Sponsored

 
OP
OP
AzScorpion

AzScorpion

Moderator
First Name
Dave
Joined
Jul 25, 2019
Threads
280
Messages
21,289
Reaction score
101,269
Location
Arizona
Vehicle(s)
2023 Ford Ranger Tremor
Occupation
CEO of DeeZee
The way I look at it is if Ford is really concerned about their dealers overpricing vehicles (and making people angry) the last thing they're going to do is overprice them themself. Let's face it any company that overproduces a product then has to have large rebates/incentives to get rid of them later is losing money. With the supply chain issues this has taught manufacturers that they can still be profitable without overproduction.
 
OP
OP
AzScorpion

AzScorpion

Moderator
First Name
Dave
Joined
Jul 25, 2019
Threads
280
Messages
21,289
Reaction score
101,269
Location
Arizona
Vehicle(s)
2023 Ford Ranger Tremor
Occupation
CEO of DeeZee
If it takes years to set this model up throughout Europe they will likely do all overseas first. So then we’re 15 - 20 years down the road before looking at the U.S. so for me an inconsequential announcement as I will likely have bought my last vehicle by that time. Can say my current dealer will not be the one for my next vehicle.
It's already going on in Europe and that's what they're modeling this off. This article is 4 years old.

https://www.bain.com/insights/a-survival-guide-for-europes-car-dealers/


Digitalization is prompting a growing number of customers to buy vehicles directly from auto manufacturers, at the expense of traditional car dealerships. New mobility services in urban regions are reducing the volume of new car sales, especially to younger customers
This one too.

https://europe.autonews.com/guest-columnist/agency-model-coming-why-good-news-dealers

Across industries, manufacturers are engaging in direct-to-consumer sales. Automaker, too, are moving away from the wholesale model. Examples are Daimler's European direct sales ambitions, Volkswagen's IDX direct sales model and Volvo's announced plans to sell all vehicles online and direct by 2030.

For all these manufacturers, direct sales are the response to new consumer expectations.

More than 80 percent of consumers say they would rather see fixed prices and a buying process as simple as the experience they are used to from e-commerce, which includes the option of new kinds of car ownership.
 

Eoj

Well-Known Member
First Name
Joe
Joined
Dec 17, 2021
Threads
0
Messages
132
Reaction score
331
Location
Albuquerque
Vehicle(s)
21 lariat fx4

Bsthroop

Well-Known Member
First Name
Brian
Joined
Oct 4, 2022
Threads
6
Messages
438
Reaction score
2,079
Location
New Mexico
Vehicle(s)
2019 Lariat 4x2 Sport
Occupation
Broadband/ Microwave Engineer
Sixteen states have laws in place to protect dealerships from direct sales. It can be done but it's not as easy is dealership buys. Mostly aimed at Teslas but it will cover others as well the same way.

https://texasview.org/why-you-cant-buy-a-tesla-in-texas/
You can't directly purchase a Tesla in the Texas because Texas has a law that prohibits manufacturers from selling directly to consumers. You are, however, able to own and operate a Tesla in the state. Texas created the law to protect and encourage car dealerships.
NM has the same law. But Tesla put their stores on the reservation, passed one last weekend. I'm waiting for the reservations to start registering cars to pull revenue from the state.
 


TXRangerTim

Well-Known Member
First Name
Tim
Joined
Feb 2, 2023
Threads
3
Messages
636
Reaction score
2,885
Location
TX
Vehicle(s)
2021 XLT Tremor
Occupation
Retired
NM has the same law. But Tesla put their stores on the reservation, passed one last weekend.
The Tesla loophole is no sales in person. They have showrooms they may call them galleries. The show people can't discuss prices or anything. You order online then pick up at the showroom you select.
 

Bsthroop

Well-Known Member
First Name
Brian
Joined
Oct 4, 2022
Threads
6
Messages
438
Reaction score
2,079
Location
New Mexico
Vehicle(s)
2019 Lariat 4x2 Sport
Occupation
Broadband/ Microwave Engineer
The Tesla loophole is no sales in person. They have showrooms they may call them galleries. The show people can't discuss prices or anything. You order online then pick up at the showroom you select.
Yeah I was wondering because I saw one in Southlake.
 

TXRangerTim

Well-Known Member
First Name
Tim
Joined
Feb 2, 2023
Threads
3
Messages
636
Reaction score
2,885
Location
TX
Vehicle(s)
2021 XLT Tremor
Occupation
Retired
Yeah I was wondering because I saw one in Southlake.
I talked to a co-woorker perviously about Tesla. He went to the Austin gallery. He said they can not talk prices at all. They will help you place an order online if you need it at their kiosk I'm sure.
 

Eoj

Well-Known Member
First Name
Joe
Joined
Dec 17, 2021
Threads
0
Messages
132
Reaction score
331
Location
Albuquerque
Vehicle(s)
21 lariat fx4
NM has the same law. But Tesla put their stores on the reservation, passed one last weekend. I'm waiting for the reservations to start registering cars to pull revenue from the state.
Passed which one? Santa Ana by Bernalillo?
 

Motorpsychology

Well-Known Member
First Name
Chris
Joined
Nov 13, 2019
Threads
11
Messages
2,556
Reaction score
7,990
Location
Prescott, WI
Vehicle(s)
2021 Ranger STX SuperCab 4X4, '09 Mariner
Occupation
Vagabond
No more dealing lol...I like "Ford Agency" better than "Ford Dealership"...
That's what they were known as years ago.
el0243-1-1650663004943.jpg
 

dtech

Well-Known Member
Joined
May 10, 2020
Threads
33
Messages
2,363
Reaction score
5,235
Location
colorado
Vehicle(s)
Ranger Lariat FX4, chromed and forever damperless
So conventional thinking was that established auto makers once they seriously committed to EVs would have numerous advantages over a relative newcomer such as Tesla, that thinking may prove to be presumptive, certainly in transitioning a 100 yr old sales model is going to meet with resistance. Ford has formed 2 divisions, wonder if mini Musk considered using the EVs as a proof of concept before going all in.
 

P. A. Schilke

Well-Known Member
First Name
Phil
Joined
Apr 3, 2019
Threads
141
Messages
7,012
Reaction score
36,169
Location
GV Arizona
Vehicle(s)
2019 Ranger FX4 Lariat 4x4, 2020 Lincoln Nautilus, 2005 Alfa Motorhome
Occupation
Engineer Retired
Vehicle Showcase
1
I'll believe it when I see it but it's a step in the right direction. Ordering a vehicle online or off-line then you pick your preferred dealer. You already having a set price so the dealer it's delivered to is only an agent. There you can inspect and test drive then proceed with the sale without any worry about markups and added costs. I think Ford has seen A LOT of backlash especially with the crazy markups on Broncos and this will hopefully put an end to most of the problems we have buying a new vehicle. Judging from the comments on YouTube many love this idea too.


Hi Dave,

This is a long time coming....the Sales side employees are shaking in their boots I would imagine as Dealers like our local Ford dealer who ooozs slime in spades!

This is why folks not associated with Ford like X plan as the dealer invoice is face up on the table and the price is in a box below the invoice price.

I wonder how they will to employee pricing...bet we will be ordering our new vehicles via the Ford Employee website with an associated pricing.

What I like is that this would be the methology for All Ford buyers not just those who are lucky to get an X plan or D plan... These hot vehicle dealer markups suck!

Best,
Phil
 
OP
OP
AzScorpion

AzScorpion

Moderator
First Name
Dave
Joined
Jul 25, 2019
Threads
280
Messages
21,289
Reaction score
101,269
Location
Arizona
Vehicle(s)
2023 Ford Ranger Tremor
Occupation
CEO of DeeZee
Hi Dave,

This is a long time coming....the Sales side employees are shaking in their boots I would imagine as Dealers like our local Ford dealer who ooozs slime in spades!

This is why folks not associated with Ford like X plan as the dealer invoice is face up on the table and the price is in a box below the invoice price.

I wonder how they will to employee pricing...bet we will be ordering our new vehicles via the Ford Employee website with an associated pricing.

What I like is that this would be the methology for All Ford buyers not just those who are lucky to get an X plan or D plan... These hot vehicle dealer markups suck!

Best,
Phil
I agree Phil and IF it's done right it'll be so much easier to buy a vehicle this way. I think many of us are/were spoiled by the rebates/incentives we're all use to. But from a business standpoint this makes a lot of sense. No business can survive overproducing vehicles only to have to blow them out with rebates later in the year. Plus the dealers incur huge carrying cost which will now disappear.

I'm guessing there will be a special code to enter for special plan pricing and employee discounts?
Sponsored

 
 



Top