Accelerating Transformation | Ford+

GNBRETT

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Excellent! Now ICE Muscle cars will start going up in value rapidly!
 

andymarkv

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I wonder if moving to "Ford Blue" and "Ford Model e" will allow them to do anything weird like an IPO for Ford Model e?
Or if diversification will allow them to act independently financially, so if one branch suffers, its doesn't drag the other down?
Or is it just rebranding like Ford/Mercury/Lincoln?
 

98 svt

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Interesting.

Sounds like a clever rebranding though.
So in other words, nothing is changing. They are making ICE and electric now, and will continue to do so.
 

CobraBob

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And then you run into the 2025 ICE ban in Europe contradiction.
 

MinGrey02Stg2

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I wonder if moving to "Ford Blue" and "Ford Model e" will allow them to do anything weird like an IPO for Ford Model e?
Or if diversification will allow them to act independently financially, so if one branch suffers, its doesn't drag the other down?
Or is it just rebranding like Ford/Mercury/Lincoln?
I'm wondering the same. I was getting my Raptor serviced last week and was talking to the sales manager about these insane markups on Raptors/GT500s. He mentioned the future of car sales being the way Tesla does it- you order a car online without haggling with a salesperson and when it's ready, they park it in a numbered spot with the paperwork inside, where the customer picks it up.

He said Ford is doing the new Lightning like this and I'm wondering if it is Ford also seeing the future of car sales without dealers as we know them.
 

13COBRA

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I'm wondering the same. I was getting my Raptor serviced last week and was talking to the sales manager about these insane markups on Raptors/GT500s. He mentioned the future of car sales being the way Tesla does it- you order a car online without haggling with a salesperson and when it's ready, they park it in a numbered spot with the paperwork inside, where the customer picks it up.

He said Ford is doing the new Lightning like this and I'm wondering if it is Ford also seeing the future of car sales without dealers as we know them.

That's not how Ford is doing the Lightning...
 

q6543

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This is about breaking the union.

The electric plants will be non union down south, the profit margins on electrics is 300% higher and growing... they don't want to payout increased profit shares to legacy employees.

The average Ford worker would lose upwards of 1 million dollars per person over a 30 year career.

Probably closer to 1.2-1.5M.

Meanwhile they are using ICE profits to subsidize their own demise.
I thought we had a decade or 2 but it looks like that isn't the case.
 

TORQUERULES

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I know that Farley was furious when he found out about the dealer mark-ups on EVs like the Mach E. He mentioned going to a model like Tesla at least for EVs. I think this is the beginning of that transition.

I have said for years that dealerships, in their greed, will run themselves out of business. Especially once automakers in the US see how well the Tesla model works, as well as used car sales with the likes of Carvana. I think subscription services are coming to EVs as well instead of leases.

Nothing worse than a stupid car dealership so greedy as to mark something up so high that it just sits on a lot and rots.
 

aoc racer

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This is about breaking the union.

The electric plants will be non union down south, the profit margins on electrics is 300% higher and growing... they don't want to payout increased profit shares to legacy employees.

The average Ford worker would lose upwards of 1 million dollars per person over a 30 year career.

Probably closer to 1.2-1.5M.

Meanwhile they are using ICE profits to subsidize their own demise.
I thought we had a decade or 2 but it looks like that isn't the case.
Interesting thought you have. I guess time will tell? When you say electric plants on the south, do you mean like in South America?
 

13COBRA

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I know that Farley was furious when he found out about the dealer mark-ups on EVs like the Mach E. He mentioned going to a model like Tesla at least for EVs. I think this is the beginning of that transition.

I have said for years that dealerships, in their greed, will run themselves out of business. Especially once automakers in the US see how well the Tesla model works, as well as used car sales with the likes of Carvana. I think subscription services are coming to EVs as well instead of leases.

Nothing worse than a stupid car dealership so greedy as to mark something up so high that it just sits on a lot and rots.

1. Farley, like CEOs of other manufacturers, has always denounced dealers for charging ADMs. It's 99% a publicly cry though, as OEMs can't dictate what dealerships charge for the vehicles, parts, service they provide.
2. When Ford launched the Mach E, Lightning, etc...it's already different than the traditional model.
3. Manufacturers would go out of business fighting the franchise law lawsuits that would come from dismembering the dealer body.
4. I don't think you're familiar with the ROI, net operating profit as a percent of sales, etc of a car dealership. If you were, you'd ask anyone in the business why they don't invest their money elsewhere.
5. There isn't anything sitting on lots, at any mark up at this point. I get calls every day offering to pay $10k+ over MSRP for new vehicles.
6. Go back in time a few years...do you realize that once the vehicle comes off the assembly line, the dealership pays for it? Whether with cash or on a floorplan? It doesn't cost the OEM to have vehicles sitting. If a dealer wants to grossly price himself outside the constraints of the market, why do you care?




EDIT: Example I just received via email. These are dealers buying from other dealers.
 

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MinGrey02Stg2

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That's not how Ford is doing the Lightning...

I knew you would know the full details, but could you explain a little?

This sales manager said the Lightning customers were given a build number and some sort of login so that they could track the car as it was being built, and would get notifications when it's ready to be picked up by the dealer. He also said they were not able to add any sort of markup.
 

Red Turtle

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Odd that the Explorer is not mentioned on the Blue side. Crazy market out there right now and thankfully I bought my Raptor in Sept of 20' and my wife's Expedition early last year before this madness.

@13COBRA , how are you handling long term loyal customers in this market? I was one to my dealer bringing almost 20 sales for family in the last 8yrs and to the same salesman. Last year they treated me like a new customer charging $5k over for an Explorer. They said order one and we will sell it to you at MSRP so we did. Problem was they set the priority level high so it never got picked up over regular inventory...
 

13COBRA

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I knew you would know the full details, but could you explain a little?

This sales manager said the Lightning customers were given a build number and some sort of login so that they could track the car as it was being built, and would get notifications when it's ready to be picked up by the dealer. He also said they were not able to add any sort of markup.

So, quick rundown...

1.) Customer submitted Lightning reservation
2.) When the order banks opened, the customers received a wave number. This would show them which two week period it would get scheduled.
3.) Customers are allowed to order during the wave that they were granted based on reservation timestamp. Each wave, Ford gives the dealer information on non-available configurations and/or commodity restraints...so Wave 2 customers, may not have the same availability as Wave 1.
4.) Vehicle gets built, delivered to dealer, then customer takes delivery.

Dealers can sell them for whatever they want. They cannot advertise them above OR below MSRP.

Your thoughts on this video?


Definitely a 3rd party, somewhat biased, video.

Dealers aren't going anywhere, anytime soon.

Odd that the Explorer is not mentioned on the Blue side. Crazy market out there right now and thankfully I bought my Raptor in Sept of 20' and my wife's Expedition early last year before this madness.

@13COBRA , how are you handling long term loyal customers in this market? I was one to my dealer bringing almost 20 sales for family in the last 8yrs and to the same salesman. Last year they treated me like a new customer charging $5k over for an Explorer. They said order one and we will sell it to you at MSRP so we did. Problem was they set the priority level high so it never got picked up over regular inventory...

I thought the same thing with the Explorer, Expedition, etc....BUT it would be a mouthful to list them all haha

We're giving them preferential order status. I would never, ever do that to a customer, let alone one who has generated so many sales for my store over the years.

If I were you, I'd lose my shit and never buy there again. That's just plain wrong.
 

Red Turtle

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I thought the same thing with the Explorer, Expedition, etc....BUT it would be a mouthful to list them all haha

We're giving them preferential order status. I would never, ever do that to a customer, let alone one who has generated so many sales for my store over the years.

If I were you, I'd lose my shit and never buy there again. That's just plain wrong.

That is actually what I did and got linked up with another GM at a store who has been fantastic. Did the deal over the phone in about 15min being a simple RCL 36mo and terming her prior Explorer. He had the car delivered to her that night along with paperwork being that they are over 50+ miles away.

Funny thing happened early this month, I got an email about her order finally being picked up that was put in the first week of October. This by no means is a small store with allocation issues either.

I started at TEAM Ford in Vegas back in 2003 along with my buddy who is GM of the store now. We climbed the ladder together up until 2008 when I was Used Car Mgr and he was the GSM. I jumped ship leaving Vegas with my family (4 and 7 girls) moving to Florida with the halt of sales due to the financial crisis peaking in summer of 2008. Customer loyalty and retention is a huge part of any business and just sucks that a dealer literally 5 min from my work is stuck in this madness of churning major profits.

The GM is a great guy and would make it a point to come out and talk with me any time that he saw me at the dealership. I am not a deal grinder either and would always buy with an X plan or car priced on their site. Usually also purchase ESP's to help backend with deal on most the purchases as well. I would imagine that he is unaware of the situation so if I see him, I may bring it up.
 

Rb0891

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1. Farley, like CEOs of other manufacturers, has always denounced dealers for charging ADMs. It's 99% a publicly cry though, as OEMs can't dictate what dealerships charge for the vehicles, parts, service they provide.
2. When Ford launched the Mach E, Lightning, etc...it's already different than the traditional model.
3. Manufacturers would go out of business fighting the franchise law lawsuits that would come from dismembering the dealer body.
4. I don't think you're familiar with the ROI, net operating profit as a percent of sales, etc of a car dealership. If you were, you'd ask anyone in the business why they don't invest their money elsewhere.
5. There isn't anything sitting on lots, at any mark up at this point. I get calls every day offering to pay $10k+ over MSRP for new vehicles.
6. Go back in time a few years...do you realize that once the vehicle comes off the assembly line, the dealership pays for it? Whether with cash or on a floorplan? It doesn't cost the OEM to have vehicles sitting. If a dealer wants to grossly price himself outside the constraints of the market, why do you care?




EDIT: Example I just received via email. These are dealers buying from other dealers.
I always figured the ROI on new sales wasn’t much. Assumed that is why the finance guy is always trying to sell add-ons. My FIL used to do fork lifts for his career (I know we have a lot of drivers in here. Lol). Always said the new sales were negligible.
 

OX1

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Excellent! Now ICE Muscle cars will start going up in value rapidly!

Never understood how that helps anyone but a pure collector (who is not using the car anyway). Parts costs seem to escalate with the higher value of the cars. Have to spend 10's of thousands sometimes just to get a rusted out hulk. Those who really want to enjoy them can't, as many times they had to pay insane money just to get one and even one scratch, it loses 10 grand in value. Huge worries about it being stolen, even leaving it just to go out for dinner.
 

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