CEO Farley: Ford is Going to 100% Online, Fixed-Price Sales For EVs

[Tenetke]

Too bad that wasn’t this year, maybe I could have avoided ADM from the dealer.


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

https://www.freep.com/story/money/c...online-sales-non-negotiable-price/7468899001/

"We've got to go to nonnegotiated price. We've got to go to 100% online. There's no inventory (at dealerships), it goes directly to the customer. And 100% remote pickup and delivery," Ford CEO Farley said in New York during Bernstein's 38th Annual Strategic Decisions Conference streamed live."​

Sponsored

 

[F150ROD]

Finally!

 

[GarageMahal]

While I agree its a good thing it might cost me $1000 since @Granger Ford is selling below MSRP.

 

[RavenYZF-R6]

While I agree its a good thing it might cost me $1000 since @Granger Ford is selling below MSRP.

But destination and delivery is $1,696 (or $1,795). If you can pick it up we can hope that fee will be gone as well!

 

[Tenetke]

It would have saved me $10k.

 

[Firestop]

I read a similar article today on Reuters…I expect for Ford to move to their direct sales model will take a year or two, and will be a gradual transition. Many dealers already have a minimal inventory of new cars and my dealer‘s web site already has a banner on its home page stating that Ford is prioritizing online special orders….I expect the transition has already slowly begun…….

 

[Roy2001]

They should have done this for Lightning! Although I am lucky enough to catch the wave 6, I still feel we only need dealers as an amazon locker. Dealer priority is not something consumers like.

 

[PV2EV]

If Ford starts with EVs, dealers will dwindle to only delivery prep and service. And the service as a major profit center won't last with EVs being less complex and more reliable. This is the main reason (of many) I don't own a Tesla.

Seems like a great reason to split company, likely getting the EV side out off existing dealership contracts.

 

[bryan995]

Cannot wait. RIP to every single dealership out-there. Even the good ones.

No more middle men. Say it with me !

 

[GDN]

I love the direction and hope to see it happen, but without major law changes in many states he can't make it happen without some hoops and hacking off those dealers. I figure he is thinking of all online, even payment, but likely doing it on behalf of or "through" the dealer perhaps. They just sell only at MSRP and make it an online transaction. Love how easy Tesla made this.

TX and many other states have laws that have protected these dealers for years and years. This is why Tesla can't sell direct in TX. We buy while the car is still in CA, make payment and then the car is shipped to TX. Officially per laws, Ford would have to do the same thing since a manufacture can't sell direct. So here is hoping that Ford is ready to join that fight to have some old laws wiped away or they have some plan to just handle the sale along with or for / through the dealer, but just make it online and easy.

If having to negotiate a price isn't bad enough, it's the greasy haired finance man that wants to finance you at 4% over going rates for his kickback and to sell you the craziest glass and wheel insurance policies. To hell with these guys.

 

[Amps]

Thanks @GDN for injecting some reality. This won’t be quick or cheap or easy. It will take some major dollars to buy out exclusive sales franchising agreements. I wouldn’t be surprised if some of these guys don’t try to burn down the house on the way out.

 

[FordLightningMan]

Once the dealer is gone, you just have a bunch of resellers snatching up the vehicles and adding their own "ADM." I have seen this regularly with vehicles in my area, people order with the intention of reselling, which you can do for a few vehicles per year without being deemed a dealer. It boggles my mind that so many people on this site are disgusted by ADM, but then talk about reselling, which in my opinion is even more sleazy than a dealer.

The only way to beat resellers in a direct sales model is to have supply meet demand, but I don't think any manufacturer wants to sit on a mountain of stock anymore. Due to this, vehicles will be just like Playstation 5 and limited edition sneakers once direct sales model is in full force. You won't be paying ADM to the sleazy dealer, you'll be paying it to your sleazy neighbor. Then you'll get the added bonus of having fewer certified service centers around afterwards, once the dealerships fold.

 

[bryan995]

Once the dealer is gone, you just have a bunch of resellers snatching up the vehicles and adding their own "ADM." I have seen this regularly with vehicles in my area, people order with the intention of reselling, which you can do for a few vehicles per year without being deemed a dealer. It boggles my mind that so many people on this site are disgusted by ADM, but then talk about reselling, which in my opinion is even more sleazy than a dealer.

The only way to beat resellers in a direct sales model is to have supply meet demand, but I don't think any manufacturer wants to sit on a mountain of stock anymore. Due to this, vehicles will be just like Playstation 5 and limited edition sneakers once direct sales model is in full force. You won't be paying ADM to the sleazy dealer, you'll be paying it to your sleazy neighbor. Then you'll get the added bonus of having fewer certified service centers around afterwards, once the dealerships fold.

None of this is true for Tesla. That sounds like dealer-propaganda to me

 

[Rob G]

As some one who has had several Teslas the no dealer thing sounds great right up until you need roadside assistance or repairs and your car from their centers.

I really enjoy(ed) our Tesla products but when they can’t fix it with the rangers in your driveway, the service center is 90 mins away and they aren’t fans of loaner vehicles service can be a pain in the butt. My son also had an issue in Tallahassee, FL and roadside said they could get to him in 3 days.

Dealers aren’t awesome, I get it, but there’s gotta be something better than what Tesla does.

 

[beatle]

The Model E "dealers" will look much different from the typical ICE dealer in that they will not need nearly the real estate that a dealer with inventory does. Perhaps they'll only carry used vehicles and a few demos, and they'll retain service facilities for repairs. With fewer sales staff mouths to feed and a smaller footprint, operating costs will be lower, and the "tricks" in financing and ADM and agreed percentage of sales will be more palatable. They'll essentially be dealers in name only, and Ford will likely make them sign agreements to this model if they want to sell EVs.

Honestly though, until Ford gets their EV production up, I can't see this happening for a few years. There just aren't enough Ford EV sales to go around for a dealership to be exclusively EV yet. Restricting allocations for "bad behavior" will be Ford's weapon of choice in the meantime. In a way that sucks for the consumer since you don't know if a dealer has been black flagged for charging ADM until it's too late and their reservation is delayed for conversion to an order..

Sponsored