Ford is going to a 100% fixed price online sales model for EV's

[JeffKeryk]

State laws are made by legislators from the communities around each state.
These guys and gals care nada about this internet thing when the local dealers sponsor local kids softball/soccer/football teams and also attend the rubber chicken campaign dinners and pay to do so.
Don't underestimate the power of local businesses to frame policy, especially since these dealerships feed many mouths.
EV sales have plateaued and there may not be enough buyers to absorb the current supply at profitable levels.
Too much too soon?

There will always be business cycles. There is no straight line growth; that's what regression lines are for.

I do agree with you analysis; but it depends on the locale. In Silicon Valley, we are tech crazy; in the CA Central Valley not so much so.
But change is coming; you can't stop it.

 

[SC Maintenance]

Apple sort of pioneered this in the modern era. Own the store, control the brand.

Works for Tesla, but they have 3 models. I think it would be much harder for a legacy company with many more options.

While I hate car dealers, cutting out the middleman won't reduce costs much. The cost of doing everything a dealer does still needs to get done. Its highly unlikely putting a showroom in a mall and haveing a seperate service location really is a cost reduction. Its likely to make the up front cost even higher - they won't be as good at subsidizing the crappy coffee from selling services that are not needed.

I think Ford is looking for a golden bullet to sell their lousy cars. I doubt it helps in this case. Still I support it - no company should be forced to sell via a model they don't want. Its anti-competitive. If they think they can do better, let them try.

 

[oil pan 4]

Or maybe, "There's a better way."

Then do that with all cars and trucks.

 

[SC Maintenance]

Then do that with all cars and trucks.

Assuming a legacy OEM wanted to do so, they would need to undo all their franchise agreements, which would be extremely expensive and take years in court.

Doing it with an EV they could make the argument that its a new brand and different enough to be outside the current franchise agreement. It would still be up to a local judge, but they might have a chance.

 

[JeffKeryk]

Then do that with all cars and trucks.

Exactly.

 

[Torrid]

Young folks don't like the dealership model. They don't like this negotiable price stuff. The sales model for cars will change in time to be the same as buying anything else.

What did it for me was working sales for a car dealership. It’s crooked intentionally to get people to pay more for a car when it’s not “no haggle” as they say. The 4 square intentionally raising the price of the car beyond MSRP without disclosing that is terrible. I’m not saying all dealers do this, but the GM dealer I worked for did.

VW doesn’t do this or I wouldn’t have the car. They gave me the price for the car and value for my trade in and showed an honest breakdown. I have no problem with this process when it’s honest, but I don’t have hours to sit at a dealer and haggle.

 

[Brons2]

https://www.roadandtrack.com/news/a40175990/ford-online-sales-no-negotiation/

Hows this going for them? They have over $10K on the hood for leases on 2023 Mach-E models still on dealer lots. Can walk out with one on a 48 month, 15K/yr lease for less than $500 a month with my trade in. But I'm not really into leasing. Maybe if they offered a purchase rebate of similar value, I'd jump.

 

[JeffKeryk]

Hows this going for them? They have over $10K on the hood for leases on 2023 Mach-E models still on dealer lots. Can walk out with one on a 48 month, 15K/yr lease for less than $500 a month with my trade in. But I'm not really into leasing. Maybe if they offered a purchase rebate of similar value, I'd jump.

I saw quite a few Mustang-E when the 1st came out. They seem to have slowed; don't see too many anymore. More Kias and some Nissans now.

 

[Torrid]

I saw quite a few Mustang-E when the 1st came out. They seem to have slowed; don't see too many anymore. More Kias and some Nissans now.

Small town Midwest seem to be all over the Mach-E purchases, at least here that’s what it looks like. I think that’s a combination of brand loyalty while still going EV. I hear Kia/Hyundai EV sales are good, but I go weeks without seeing a single one if I don’t end up in a bigger city in my travels.

Ford, Lincoln, Chevrolet, GMC, Buick, Chrysler, Dodge, and Jeep are the only brands that have new car dealers in town and those are spread across 4 dealers total. I always found smaller towns interesting in this regard. The smallest town I know of here with anything other than the big 3 is 75k+ people.

 

[Brons2]

Small town Midwest seem to be all over the Mach-E purchases, at least here that’s what it looks like. I think that’s a combination of brand loyalty while still going EV. I hear Kia/Hyundai EV sales are good, but I go weeks without seeing a single one if I don’t end up in a bigger city in my travels.

Ford also has access to the Supercharger network, so there is that as well. I see comments on PlugShare for Mach-E owners filling up at Tesla stations.

 

[demarpaint]

As long as the dealers don't do stupid things like adjust the no haggle price with a "market adjusted" price and hike up the no haggle price, then it might be OK. If that's the case their vehicles should be left to "rot on the lot." Either way no more Fords for me.

 

[Torrid]

As long as the dealers don't do stupid things like adjust the no haggle price with a "market adjusted" price and hike up the no haggle price, then it might be OK. If that's the case their vehicles should be left to "rot on the lot." Either way no more Fords for me.

100%. I know I’ve considered one of their EVs but I don’t know if I could follow through on buying a Ford.

 

[2strokeNorthstar]

Dealers took the BS to another level post C-19. Many are still doing it. Most people would be glad to see the old model go away. I hate seeing a price online and going to the dealer to find out they pulled some number out of the air. Waste of time and bad for the company.

 

[cb_13]

100%. I know I’ve considered one of their EVs but I don’t know if I could follow through on buying a Ford.

But what’s better anymore? The 22 Pacifica we bought new has already had more problems than the 17 Explorer it replaced. We bought the Explorer because an 18 Sienna(2 years old at the time) with 40k left us stranded on the initial test drive.

These “engineers” degrees aren’t worth the crayon they were written in and all vehicles are junk the quicker we can all admit to that the easier it will be

 

[Torrid]

But what’s better anymore? The 22 Pacifica we bought new has already had more problems than the 17 Explorer it replaced. We bought the Explorer because an 18 Sienna(2 years old at the time) with 40k left us stranded on the initial test drive.

These “engineers” degrees aren’t worth the crayon they were written in and all vehicles are junk the quicker we can all admit to that the easier it will be

Brake failure 3 times and refusing to cover it under warranty. Problems are one thing. Safety issues and refusing to honor the warranty aren’t. Every part of the hydraulic brake system failed slowly over a year’s time.

I would have already been furious if it was my daily. It brought it to another level as it was my wife’s vehicle and was the main transport for my children. If it wouldn’t have given me charges I would have lit it on fire and pushed into the front glass of Ford’s headquarters.

 

[andrew_j]

I don’t see this helping Ford as an EV seller.

 

[UncleDave]

https://www.roadandtrack.com/news/a40175990/ford-online-sales-no-negotiation/

Looking back in time Ford fell far short of this claim with dealers manipulating everything just as they did with ice, combine the horrible dealership practices of the day along with all the products broken promises and the combination effectively stalled fords progress.

Fords subsequent attempt at splitting their channels also failed.

Ford is to be commended on coming clean with their numbers.

 

[loneryder]

Dealers don't want them. Can't repair them. Can't sell them. Doesn't know how to work on them.