Fords future

[Dr. Zaius]

I think we need something a little more reliable.

Not gonna ask the wife if I can borrow her ride...

Wait! Honey if you read this I was just joking!! Honest!!!

Fortunately our couch is very comfy...

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[Strobes]

Car dealers aren’t much different than politicians to me… I’d rather buy direct. Of course there will be unintended consequences, but I’d be willing to cross that bridge when we get to it.

 

[Jason B]

As it stands I can't get an appointment for the next 3 weeks to get my wife's explorer looked at (airbag issue), and the launch of the bronco and lightning and the ensuing dealer shenanigans have totally soured me on my Local Ford Dealers. Ford better figure this out quickly cause there are other choices.

Other choices? Every make is experiencing or moving away from the current business model. They think 'If it works for Tesla, it will work for us'.

You think Ford dealerships are bad - try a Hyundai or KIA dealership , although it's been over 10 yrs I did visit a half dozen or so of those dealerships and it was an experience I'll never forget, the collective IQ of the sales people I dealt with was on the lesser side of 100 . Appalling.

Maybe if Elon Musk can't land Twitter he might possibly amuse himself by buying Ford, with the stock sinking he might be hunting for a "bargain" - or a tax write down. . The downside for me would be that I've never seen much chrome on Tesla's .

Musk is super rich, but not that rich. The Ford company is in decent shape, probably better than other makes. Dealerships, not so much. I don't recall Ford having to file for bankruptcy bailout as some another make has done.

 

[Trigganometry]

Years ago my Father in law worked for Ford. He got 2 cars a year on his employee number that immediate family could purchase on the A plan. Anything on the lot for factory invoice to dealer and a documentation fee. No haggling or BS. I learned quick! Don’t walk onto a lot looking and tell them about using the plan. They will show you every dog on the lot! We would shop looking at loaded vehicles and knowing up front if it was available. Once we got a yes on whatever we wanted I would whip out the card. May I see the factory invoice please. Ok write it up and the doc fee is $46 bucks.

Can’t do that today as no inventory to do it.

 

[Langwilliams]

Years ago my Father in law worked for Ford. He got 2 cars a year on his employee number that immediate family could purchase on the A plan. Anything on the lot for factory invoice to dealer and a documentation fee. No haggling or BS. I learned quick! Don’t walk onto a lot looking and tell them about using the plan. They will show you every dog on the lot! We would shop looking at loaded vehicles and knowing up front if it was available. Once we got a yes on whatever we wanted I would whip out the card. May I see the factory invoice please. Ok write it up and the doc fee is $46 bucks.

Can’t do that today as no inventory to do it.

there are/were 4 ford plants in my area. the dealerships used to advertise the A plan price since most of the deals they offered were A or Z plan. Ford expanded the number to 4 a year to help them move product. Dealers won't honor it on limited quantity cars like Shelby mustangs or Roush products. Probably wouldn't get it on a Bronco or Mach E since they're struggling to meet demand.

 

[dtech]

Other choices? Every make is experiencing or moving away from the current business model. They think 'If it works for Tesla, it will work for us'.


Musk is super rich, but not that rich. The Ford company is in decent shape, probably better than other makes. Dealerships, not so much. I don't recall Ford having to file for bankruptcy bailout as some another make has done.

He might have to sell off some of his Tesla holdings but earlier in April his net worth was estimated to be between $273 and $300 billion , whilst Ford is worth $60 B.
" Elon Musk's net worth is now about a stratospheric $300 billion, according to Forbes' real time rankings of the world's wealthiest people.Apr 5, 2022 "

If he so desired he could buy Ford and GM as well, but no matter as I was making that comment about buying Ford moreso in jest as for decades now most companies considered to be old line mfgs have seen their value decline in comparison to companies like MS, Apple, Facebook and recently Tesla.

Personally I'm not a fan of any system that allows any single individual to acquire that amount of wealth.

 

[rydfree]

As someone who enters a number of dealership on a regular basis. I heard about this for sometime. I think ford and other brands are trying to follow the carvana tesla model.

Not sure they want to follow the Carvana business model.
https://finance.yahoo.com/news/bill...CW_x3YLzhbm5A3D5VrN_O0mcTrH3R4kNM-OJNIy5hnhFQ

 

[Deleted member 1486]

Not sure they want to follow the Carvana business model.
https://finance.yahoo.com/news/bill...CW_x3YLzhbm5A3D5VrN_O0mcTrH3R4kNM-OJNIy5hnhFQ

My sediment exactly. I could write a novel about the issues with carvana, vroom etc

 

[Dr. Zaius]

Not sure they want to follow the Carvana business model.
https://finance.yahoo.com/news/bill...CW_x3YLzhbm5A3D5VrN_O0mcTrH3R4kNM-OJNIy5hnhFQ

Well after what they were offering for used vehicles for a while, I can see how their losses were mounting.

That also explains why their recent offers for my truck have been lower ?

 

[deleriumtremor]

The last 13 years or so, the Fed's "emergency monetary policy" has made a lot of really bad ideas, seem like really good ideas.

That is all about to change as while the Fed still has a "monetary emergency", the emergency is Inflation, not deflation.

The worst thing any real business can do today is decide to emulate a way of doing business that won't be here in the next 10 years, when risk capital is no longer free.

 

[FordFreak]

When I bought my vehicle back in November this is basically what the service manager told me was coming and they were preparing for. His take was that they would still have a few models on the lot for test drives and for in person viewing along with some select colors. Used cars would still be there, but newer vehicles would be based on orders only. Service departments would still be there and those with the best service in an area would end up winning out. They were very focused on customer service. They were also actively looking at ways to monetize the upcoming wasted lot space until their lease runs out and can relocate to a smaller lot.

lol. The absolute WORST dealership in my area built this ginormous new place and moved into it in March of 2020. It's now the largest used car lot, probably in Colorado with over 675 used cars on the lot. They're even charging new car pricing for used with 6% interest. They have close to 50 bays with lifts for service, and if you take your vehicle there, they will tell you that you have an oil leak and that you'll need to bring it back for a "diagnostic" since they aren't "allowed to tell" you where the leak is coming from. I will celebrate when they go out of business.

 

[FordFreak]

Well after what they were offering for used vehicles for a while, I can see how their losses were mounting.

That also explains why their recent offers for my truck have been lower ?

True that...they gave me a GREAT price on a used car one time. One. Time. Then they offered $10k under what I sold my Mustang for the next day.

 

[rooster]

If we buy online direct will they still sit us in a virtual room and badger us about scotch guard treatments, 3rd party extended warranties and tire warranties for just $20-40 more a month??

 

[Dr. Zaius]

If we buy online direct will they still sit us in a virtual room and badger us about scotch guard treatments, 3rd party extended warranties and tire warranties for just $20-40 more a month??

And offer fresh summer nitrogen for my tires through my email.

 

[importfighter01]

I spent 12 yrs as a software vendor working with dealers; worked with 20yr dealer principals to salespeople who had 1 week experience. Same for service, fixed ops directors to greenpea service writers. 70 store groups down to small town dealers with no competition for hrs away. Was a magnificent education in the franchise dealer world, how they make money, how they are motivated, how they co-exist with their manufacturers, etc. I added it up once and I worked with over 300 unique dealerships in over 30 states.

There are some good people in the industry for sure, but by and large it’s unfortunate that a majority of the stereotypes are true. Many dealers are successful in spite of themselves, not because of themselves (they have a new commodity each year and you have to use them to purchase it). Most industry people even hate having to deal with other dealers to purchase their own cars even because they know how the game is played.

All that being said, there are may 10 out of those 300 I visited I would send my own mother to in order to purchase a vehicle, which is exactly the reason they will be out of business selling new vehicle someday sooner than later. Their only value was a pleasant client experience, and 90% fail at that so the public is rejecting them and OEMs know it.

Dealer shenanigans hurts OEM brand image which hurts profits because all they want to do is make and sell new vehicles. Many dealers do see that the OEM wants to squeeze them out, but the OEM has more power in their franchise agreement and will make it happen come hell or high water. Direct to consumer works.

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