Jim Farley comments about ADM during 4th quarter conference call

[Maquis]

Jim Farley in the Q4 Earnings Call:
“We have about 10% of our dealers last year in the supply-constrained environment that, were charging above MSRP to our best of our knowledge. We have very good knowledge of who they are. And their future allocation of product will be directly impacted because of that policy. And we've seen really quick action by our team.”

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[broncoaz]

We can only hope. I'll believe it when I see it.

 

[Maquis]

We can only hope. I'll believe it when I see it.

I’m not sure if we’ll be able to tell if a dealer actually loses part of their allocation. Unless they admit it.

 

[gorwell]

I believe him.

I've found it rare to find a Ford dealer put markup on the F150 Lightning. 2/3 dealers in my immediate area were clear about no ADM.

Over my time obsessing over the Lightning and seeing wave orders convert, I feel like I've seen maybe 3 that have ADM on their order form... And, it was pretty simple to call Ford and change dealers and still convert their order.

I'm also in the market for the Ioniq5... I've contacted like 10 dealers in 200 miles around me. Only 1 so far has said no ADM. Average is $5K+.

Ford is actually doing something here by having negative consequences for those dealers that add ADM.

Hyundai has pretty much said they have no control... which is and isn't true... I'm certain they can penalize Dealers similar to what Ford is doing. They just decided not to.

 

[F150SWPlat]

Jim Farley in the Q4 Earnings Call:
“We have about 10% of our dealers last year in the supply-constrained environment that, were charging above MSRP to our best of our knowledge. We have very good knowledge of who they are. And their future allocation of product will be directly impacted because of that policy. And we've seen really quick action by our team.”

Can you include the source of the quote, an article where you saw this?

 

[mnstang]

Only 10%? I thought that figure would be higher, seems like quite a few dealers are doing the ADM.

 

[Vorador]

He is either lying or uninformed. 6 dealerships near me are charging 5-10k ADM, only one is claiming not to.

 

[idahospud]

Can you include the source of the quote, an article where you saw this?

Ford CEO Farley Says Dealers Who Gouge Could Get Fewer Vehicles - Bloomberg

 

[Sam James]

My dealer suddenly is charging $30k ADM and is concerned that if I switch dealers I won't get a Lightning because of @Ford Motor Company's allocation. Farley does come from a very funny family--hard to take what he says seriously.

 

[Marshall]

Jim Farley in the Q4 Earnings Call:
“We have about 10% of our dealers last year … that were charging above MSRP to our best of our knowledge. We have very good knowledge of who they are. ”

Interesting, because in OKC, of the 5 dealers that I have spoken with, only 2 don’t charge ADM for preorders for the Lightning and at least 4 of the 5 and possibly all 5 (one didn’t know) intend to add ADM to the F150 Lightning when it is on their lot.

 

[Maquis]

Can you include the source of the quote, an article where you saw this?

https://www.fool.com/earnings/call-transcripts/2022/02/04/ford-f-q4-2021-earnings-call-transcript/

It‘s in the Q&A, about 3/4 down the page.

 

[Maquis]

He is either lying or uninformed. 6 dealerships near me are charging 5-10k ADM, only one is claiming not to.

10% sounds quite low to me, too. The important thing isn’t so much how many there are, but that some action will be taken. We’ll see.

 

[IdeaOfTheDayCom]

A while back, one of the local dealers near me said their policy is to honor the list price for pre-orders, because they made their deposits based on the published prices... But if they get any inventory above those orders, market prices will likely be higher.

Thankfully, I ordered mine on May 20 of last year.

 

[rdr854]

Only 10%? I thought that figure would be higher, seems like quite a few dealers are doing the ADM.

His comment may be what is in the Ford system. I had one dealer tell me that they would decide what the ADM would be at the time of delivery. Because of that tactic, Ford would not necessarily be aware of the issue with respect to that particular dealership.

 

[Sundancer330]

This must not be part of the franchise agreement between Ford and the dealers otherwise it would be a moot point and easy to enforce. Since many dealer are just trying to stay open with no inventory to sell they have to ask more. Will be interesting to see if anything happens.

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