Ford CEO Farley making the tough decisions

[slo town]

Statistics is tough even if you attend. I love Stats. Made a dang career in Statistical Forecasting.

Yep, statistics ended up being an essential part of my career. I was really good at it. I'm ashamed to say that sometimes I "cooked" numbers to make a case in certain scenarios. Cooking numbers is a slippery slope and I never felt good about it, but sometimes it needed to be done.

Scott

 

[JavierH19]

This is what kills me. The Maverick, IMO, makes so much sense for so many people. I think of it as the 70's Datsun PU. And then the dealerships choose to mark up the price which will make more profit in the short run but send many customers to other brands.

In business school we learn if your customer thinks you did them right they will tell 10 of their friends. If they think you did them wrong they will tell the world.

Their short term greed kills their long term prospects because i genuinely hate Joe Myers and planet Ford for being rats. And now their storage lot is jam packed which it hasn't been in 3 years. They aren't selling as much as before. I don't completely hate Sewell Cadillac since they didn't mark up my Escalade. Though those rats still tried to sell me a bullcrap 2 grand windshield insurance which is insanity since just about all full coverage plans include that anyway. So i only hate then partially yet they didn't even mark it up.

 

[tvaughn]

If Ford would use higher quality parts along with better fit and finish that would certainly help. Wild the amount of issues/TSBs/recalls the Ranger and Bronco have- and these are not exactly S-classes in regards to complexity. My 2018 Shelby GT350 was poorly put together and I lemon-law'd it after two blown engines for instance. And as many said, a lot of their dealerships are bottom of the barrel- couldn't believe what two of them in LA did/tried to do with my Shelby. Ironically my Fiesta ST was pretty much perfect other than a blend door actuator they replaced under warranty.

I would have a Bronco if it wasn't for the poor quality, it really is a letdown so I went with a used GX460. And I would've had a Ranger over a Tacoma a few years ago but once again same story. Their technology and drivability are usually top of the class or close to it, wish they put that emphasis on QC and reliability.

 

[andrew_j]

Ford and Harley’s 120th anniversary year. I wish them both well!

Age is not always an issue, look at IBM at 110 years who has remained relevant across time.

 

[PF52]

What they need is a Mustang truck. And a Mustang sedan, a Mustang minivan, and more Mustang SUVs....

 

[JeffKeryk]

What they need is a Mustang truck. And a Mustang sedan, a Mustang minivan, and more Mustang SUVs....

And a Mustang Mustang! Not to be confused with the Mustang, of course...

 

[dogememe]

How about you force dealers to sell at MSRP!

 

[UncleDave]

How about you force dealers to sell at MSRP!

Not legal in many places.

You cannot tell someone what to sell something for once they own it.

 

[dishdude]

Not legal in many places.

You cannot tell someone what to sell something for once they own it.

Sure they can. Why do you think Apple, Bose, Sonos and other brands have pricing identical at every store?

 

[dogememe]

Not legal in many places.

You cannot tell someone what to sell something for once they own it.

You can put in the contract between the dealer and Ford that they have to sell the vehicle at MSRP. Or perhaps contractually at least say 85% of new vehicles have to be sold at MSRP to allow for stuff like dealer-installed lift kits, custom wheels, etc. And if they exceed that number fine them for it or restrict their allotments til they do what you want.

Mavericks would be flying off the shelves/parking lots at their MSRP. But any local dealer that has them is still marking them up. Used ones with like 10K miles are like 10K over MSRP. It's nuts. If Ford could ramp up production of the Maverick they could sell every single one of them no problem.

 

[UncleDave]

Sure they can. Why do you think Apple, Bose, Sonos and other brands have pricing identical at every store?

In the case of Apple and Bose those are manufacturer owned stores - not dealer franchises.

Its not legal for Ford to sell directly.

 

[dishdude]

In the case of Apple and Bose those are manufacturer owned stores - not dealer franchises.

Its not legal for Ford to sell directly.

Apple and Bose own Best Buy and Costco?

 

[UncleDave]

You can put in the contract between the dealer and Ford that they have to sell the vehicle at MSRP. Or perhaps contractually at least say 85% of new vehicles have to be sold at MSRP to allow for stuff like dealer-installed lift kits, custom wheels, etc. And if they exceed that number fine them for it or restrict their allotments til they do what you want.

Mavericks would be flying off the shelves/parking lots at their MSRP. But any local dealer that has them is still marking them up. Used ones with like 10K miles are like 10K over MSRP. It's nuts. If Ford could ramp up production of the Maverick they could sell every single one of them no problem.

No you cant.

The best you can do is create programs for following the wishes of the manufacturer.

 

[SC Maintenance]

Sure they can. Why do you think Apple, Bose, Sonos and other brands have pricing identical at every store?

Because Apple, Bose, etc put it in the sales agreement up front. They can choose not to, and then they don't get the product. It wouldn't surprise me at all if Apple continues to own the inventory until its sold, at which point its technically a commission - just guessing on that.

The Ford Dealers are already set up as an independent franchise, and they own the product. Most franchises, and especially auto franchisees, or protected by state laws, which is why they never get fired.

 

[UncleDave]

Apple and Bose own Best Buy and Costco?

Best buy and Costco - do not sell above MSRP, but discount the product a very minimal amount.

 

[dogememe]

No you cant.

The best you can do is create programs for following the wishes of the manufacturer.

Dominos is franchised yet the pizza costs the same at all of them. Some don't accept the corporate advertised coupons but that is clearly displayed in their app when ordering.

 

[dogememe]

Best buy and Costco - do not sell above MSRP, but discount the product a very minimal amount.

Exactly. If an iPad costs the same at the Apple store as Best Buy, Costco, etc. Ford can do this too.

 

[UncleDave]

Dominos is franchised yet the pizza costs the same at all of them. Some don't accept the corporate advertised coupons but that is clearly displayed in their app when ordering.

It's up to them what they charge.

Dominos cant control it.

 

[UncleDave]

Exactly. If an iPad costs the same at the Apple store as Best Buy, Costco, etc. Ford can do this too.

No they cant because they arent selling the car - someone who already bought the car is selling it and if they want to gouge you 50% over they can.

 

[dogememe]

Exactly. If an iPad costs the same at the Apple store as Best Buy, Costco, etc. Ford can do this too.

To expand on this, Best Buy and Costco still make money. Costco because you bought a membership to go in the store to buy that iPad. And Best Buy because they make their money on high margin accessories and Geek Squad protection plans.

Dealers can sell cars at MSRP and still be profitable!! Service department, parts department, extended warranties, kickbacks on financing, marking up gap insurance...