Ford CEO want's on line ordering only

[EJH]

Dealers would still be responsible for the final delivery/sale of online orders (and receive a percentage of the sale) along with service. They will lose the large inventory of vehicles they usually stock, along with many sales people. This is mostly a win for them. I have a family member at a Ford dealership and have discussed this extensively with them. They are not worried. For the most part, reducing on hand inventory liability is a positive move for dealers. They just lose the impromptu/spontanious sales. My family member suggested that most likely dealers will still carry a smaller subset of inventory, of the most common vehicle configurations, to sell to the spontaneous shoppers (and use for test drives).

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[D Fresh]

On the Page in your link there's a link to seekingalpha's full transcript. I scanned it and came out with 2 takeaways.

Farley launched Scion, that doesn't bode well for Ford. Not sure why he would brag about this.

Farley thinks he can make a Mach E perform like a Raptor.

This man is an idiot. Half the speech was about how all this bullshit they're planning is going to be soo much better for the customer. But at the same time increase revenue. How exactly is that supposed to work. Sounds like yet another company telling me what I want. Sounds like a politician telling you about their sponsored legislation and how good it'll be for you.

Howabout you just focus on building automobiles and stop worrying about the "customer experience?" If you build good cars the customer experience takes care of itself.

 

[Porpoise Hork]

And just how many Rangers and Broncos are sitting in lots waiting for parts cause Ford can't get them in?

Didn't Ford just suspend all 2022 customer orders on multiple models including Rangers cause they can't keep up with demand?

Yeah... This is gonna end so well for them...

 

[AdamHarris]

On the Page in your link there's a link to seekingalpha's full transcript. I scanned it and came out with 2 takeaways.

Farley launched Scion, that doesn't bode well for Ford. Not sure why he would brag about this.

Farley thinks he can make a Mach E perform like a Raptor.

This man is an idiot. Half the speech was about how all this bullshit they're planning is going to be soo much better for the customer. But at the same time increase revenue. How exactly is that supposed to work. Sounds like yet another company telling me what I want. Sounds like a politician telling you about their sponsored legislation and how good it'll be for you.

Howabout you just focus on building automobiles and stop worrying about the "customer experience?" If you build good cars the customer experience takes care of itself.

Weeel he was also instrumental in Lexus success.

I’m sure you have delivered some delicious chocolate milk and made some 5 yr olds day…I’m also sure you have delivered some curdled up 2% that made someone gag.

Windshield and bug and all that.

 

[D Fresh]

Weeel he was also instrumental in Lexus success.

I’m sure you have delivered some delicious chocolate milk and made some 5 yr olds day…I’m also sure you have delivered some curdled up 2% that made someone gag.

Windshield and bug and all that.

Since we're throwing out euphemisms, one comes to mind.

"What have you done for me lately."

The history of a badge engineered sub brand from the 80's is not really pertinent here. What is pertinent is that this fool though badge engineering was the way to go recently. We all see how that worked out. Why would he hang his hat on that?

The man is a tool. Read the transcript. It's quite apparent.

Also, I don't produce milk I simply deliver it. Really just train others to, now. But my nickname at work is "Iceman." Because that's how I deliver, "Ice cold, no mistakes."

Just like I'm sure you've never laid down wavy paint.

 

[Colo_Ranger]

I suppose another potential downside to this is that warranty service will get much worse for us. Without the incentive to play nice with the customer so they come back and drop more $$$ on a new vehicle purchase in the future, I can't see the dealers putting much effort into taking care of customers for warranty claims. Unless Ford steps up their reimbursement to the dealers for warranty expenses as I don't think the dealers make much off of claims now as it is.

This has been covered, on this forum, a bunch of times. Dealers make their money on warranty work. The hourly rate for warranty work is higher than the rate on regular work. Dealers only make a little on sales. Their real money is on service and warranty work. They will have to come up with new ways to get people in for warranty and service than 'you bought it here, come back here' but they won't lose a lot of money. Lots full of vehicles are an American idea, for the most part.

 

[RedlandRanger]

I suppose another potential downside to this is that warranty service will get much worse for us. Without the incentive to play nice with the customer so they come back and drop more $$$ on a new vehicle purchase in the future, I can't see the dealers putting much effort into taking care of customers for warranty claims. Unless Ford steps up their reimbursement to the dealers for warranty expenses as I don't think the dealers make much off of claims now as it is.

I think there is definitely room for service departments in this model. Good service is still a rarity and if they build a reputation for good service, people will come back and spend more $$$ for it. I've heard that dealers make more money on service than on sales now anyway.

It amazes me that more companies don't realize there are a lot of people that will pay more for good service.

 

[Radioman]

I think there is definitely room for service departments in this model. Good service is still a rarity and if they build a reputation for good service, people will come back and spend more $$$ for it. I've heard that dealers make more money on service than on sales now anyway.

It amazes me that more companies don't realize there are a lot of people that will pay more for good service.

I agree Rob.

The last three vehicles I purchased were online with the "internet salesperson" and I never met them until it was time to pick up the vehicle. I like ordering a vehicle rather than visiting many different dealerships trying to find the vehicle with the options I want and the color I want.

However, I do visit a dealership prior to ordering to test drive and to visualize the color, I just tell the floor salesperson that I am " just looking" and don't plan to purchase on that day.

I am pleased that the dealerships do exist to enable my research and to do any warranty work/recalls that may be needed. Looking at the cost the dealerships want for minor service such as brake jobs, etc., it is apparent the profit is in service, not sales. A dealership that supplies great repair work at a fair price will develop a following. A good reputation is the key to profitability.

 

[Aonarch]

That's true, but sadly many that have day 1 & 2 reservations are being bypassed because of a decision that was made by Ford. I reserved on 10/03/20, and my original build date was expected to be around now. But due to Fords decision to kiss the asses of the mega dealers, if I'm lucky I'll get a build date in '24. I'm kinda over it now, and am looking at going in a different direction.

I cancelled mine.

 

[jflogerzi]

I am ready for custom orders online only. Regional service centers and cars available for test drives. Honestly the dealer network needs to slowly be transitioned out.

 

[9zero1790]

my feelings would not be hurt to see dealer service centers be actually ford instead of franchise or whatever. i feel like it would be less service headaches and a trust worthy warranty. the only thing i ever like about dealers is making them compete to make a sale and getting a lower price than sticker and so on. if online direct sale means msrp forever im out. paying msrp is against my religion lol.

 

[Radioman]

my feelings would not be hurt to see dealer service centers be actually ford instead of franchise or whatever. i feel like it would be less service headaches and a trust worthy warranty. the only thing i ever like about dealers is making them compete to make a sale and getting a lower price than sticker and so on. if online direct sale means msrp forever im out. paying msrp is against my religion lol.

How true Mark. When I made up my mind on which model, options, and color I wanted, I sent an email to 10 semi-local dealerships telling them that I was a serious buyer and I would buy from the dealership with the lowest out-the-door price. Only one dealership would not provide a quote via email (they wanted me to visit the dealership before quoting) and I quickly eliminated them.

I ended up with a very good price and didn't have to drive to the several different dealerships and put up with their BS. Of course, this was before the latest issue with COVID and parts shortages.

 

[9zero1790]

How true Mark. When I made up my mind on which model, options, and color I wanted, I sent an email to 10 semi-local dealerships telling them that I was a serious buyer and I would buy from the dealership with the lowest out-the-door price. Only one dealership would not provide a quote via email (they wanted me to visit the dealership before quoting) and I quickly eliminated them.

I ended up with a very good price and didn't have to drive to the several different dealerships and put up with their BS. Of course, this was before the latest issue with COVID and parts shortages.

i do the same. I dont even step on a lot unless im set to buy with a deal in the works. i test drive and check it over and then head to the paper work. dealers that dont wanna play that way i just forget about and move on.

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