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Jim Farley comments about ADM during 4th quarter conference call

EVBill

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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.
I expect with a $30k ADM to a vehicle that already costs $20k more than for a similarly optioned ICE F-150 will have them losing most every customer.
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metroshot

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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.
^^^
Super reasonable dealers in your area!

Makes sense that pre-orders where the dealer does not have to float the truck bill does not need to charge ADM.

Also makes more sense that dealers that order their own inventory can charge ADM - it's their money that's floating at the bank which they have to pay for in addition to the overhead dealers have to pay on their lot space.
 

Sam James

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^^^
Super reasonable dealers in your area!

Makes sense that pre-orders where the dealer does not have to float the truck bill does not need to charge ADM.

Also makes more sense that dealers that order their own inventory can charge ADM - it's their money that's floating at the bank which they have to pay for in addition to the overhead dealers have to pay on their lot space.
Yep, they can certainly wait for a whale to come in and pay $20k or $30k for no good reason on a truck the dealer ordered. Good for them, grab those margins, forget the volume. Whatever.

When a customer comes in after having sold themselves the vehicle, placed the reservation themselves, and submitted the order themselves there is zero reason for them to do this. They're already taking 10% of the MSRP if they've done everything else right--for hardly any work whatsoever. Likely less than the customer did. If the buyer walks away, have at it on the ADM! Its screwed up, but whatever, you do you, Mr. Dealer :D
 

KevinC

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Another concern to consider is a Local/regional problem with Collusion where dealers close by talk on the side and agree to charge ADM on products like this. Most people don't really want to drive hours away to buy something like a vehicle. Good luck every proving it.
 

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Maybe only 10% of dealers are charging ADM on the planet that Farley is living on. My albeit limited research is very different 3 of 5 dealers I contacted and who responded are charging ADM. One dealer that is at MSRP will likely get screwed on allocations because it is not in a ZEV state over 1,000 miles from me. The other non-ADM dealer is an 8 hour drive away. 2 other dealers I contacted did not respond to my e-mails. Mmmv, but I am calling BS on the 10 % claim and invite Ford to prove me wrong.
 

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10% is a joke. If they really cared then they would set up a program where buyers could report dealers charging an ADM. I talked with close to a dozen dealerships in the Bay Area and only one committed to not charging over MSRP. Many of them put their ADMs in writing - over email. I'd happily forward those emails to Ford if they told me where to send them.
 

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10% is a joke. If they really cared then they would set up a program where buyers could report dealers charging an ADM. I talked with close to a dozen dealerships in the Bay Area and only one committed to not charging over MSRP. Many of them put their ADMs in writing - over email. I'd happily forward those emails to Ford if they told me where to send them.
Trying to get my dealer's $30k ADM escalated to Ford before switching to another. I want to see them lose allocation. Dealer put no ADM in writing twice and still had the gall to pull this stunt. I don't really believe Ford cares at all and anything could come of it, but I'll happily take a whacking from a windmill either way.
 

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Trying to get my dealer's $30k ADM escalated to Ford before switching to another. I want to see them lose allocation. Dealer put no ADM in writing twice and still had the gall to pull this stunt. I don't really believe Ford cares at all and anything could come of it, but I'll happily take a whacking from a windmill either way.
This is exactly why I have an R1T and Silverado EV reservation. If I go to the dealership and they try to slap ADM on at the last minute, I'll tell them to go fuck themselves and just wait for one of those.
 

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This is exactly why I have an R1T and Silverado EV reservation. If I go to the dealership and they try to slap ADM on at the last minute, I'll tell them to go fuck themselves and just wait for one of those.
I have reservations for a R1T, Ioniq 5, and second VW ID.4. As soon as I was pretty certain our dealer was playing games I also put in an order for a Mach-E with a competing dealer (no ADM, we're through the PO). Something will replace my car, even if its not the Lightning. I sure hope it is, but I don't trust @Ford Motor Company to make sure the allocation moves dealers and I want that damn tax credit and a second EV.

Sure hope Ford figures this out for the next product launch... *hears the distant laughter of Bronco, Maverick, and MME buyers*
 

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The messed up thing is how do you know if the dealer you're using is going to have their supply restricted, no way of knowing unless Ford publishes a list of restricted dealers.
Might be the reason why your minutes-after-presentation reservation isn't usable till wave 5, because your dealer sucks. ☹
 

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The messed up thing is how do you know if the dealer you're using is going to have their supply restricted, no way of knowing unless Ford publishes a list of restricted dealers.
Might be the reason why your minutes-after-presentation reservation isn't usable till wave 5, because your dealer sucks. ☹
Ford should restrict dealer stock orders for any Ford vehicle, starting of course with their best selling vehicles, not just blindly limiting allocations on orders. Of course they should cancel orders where the customer has a verifiable complaint and transfer the customer to another dealer. That way the dealer gets slapped twice. They don't get to convert an "abandoned" order to dealer stock and they get shafted with reduce dealer stock allocations.
 

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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.
That is not possible. In fact, it is impossible with the way the Lightning ordering system works. It is interactive with the dealer, THROUGH the Ford reservations system, and the dealer sets the deposit amount and the final price INSIDE the Ford reservation system at the time you finalize your order. I had to make a second $500 deposit when finalizing my Platinum last week, no ADM. The final FIXED price amount that I will pay for the truck, plus taxes and tags, was disclosed prior to my finalization and making the second deposit (after the initial $100 made at the time of reservation).

I checked around the Ford dealers here in South Florida - the big guys (including mine, Grieco in Delray Beach) do get away with ADM on lots of things like in-stock Shelbys and Broncos, Raptors, but none of them have played any games with ADM on Lightning. And none of them do it on anything they order for a customer. They got the memo.
 

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That is not possible. In fact, it is impossible with the way the Lightning ordering system works. It is interactive with the dealer, THROUGH the Ford reservations system, and the dealer sets the deposit amount and the final price INSIDE the Ford reservation system at the time you finalize your order. I had to make a second $500 deposit when finalizing my Platinum last week, no ADM. The final FIXED price amount that I will pay for the truck, plus taxes and tags, was disclosed prior to my finalization and making the second deposit (after the initial $100 made at the time of reservation).

I checked around the Ford dealers here in South Florida - the big guys (including mine, Grieco in Delray Beach) do get away with ADM on lots of things like in-stock Shelbys and Broncos, Raptors, but none of them have played any games with ADM on Lightning. And none of them do it on anything they order for a customer. They got the memo.
All that is true. However, during the early days of MME deliveries, a handful of dealer attempted to add ADM even though it wasn't part of the initial order. When customers complained to Ford, Ford put a kibosh on that. My dealer attempted to charge me for unrequested add-ons (nitrogen tires, wheel locks, etc), but they cave on that fairly quickly. My dealer also attempted to charge me for $1,000 VLT instead of $40 that EVs were entitled to at that time. They also tried to charge me $499 doc fee instead of $100 max on X-plan.
 

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All that is true. However, during the early days of MME deliveries, a handful of dealer attempted to add ADM even though it wasn't part of the initial order. When customers complained to Ford, Ford put a kibosh on that. My dealer attempted to charge me for unrequested add-ons (nitrogen tires, wheel locks, etc), but they cave on that fairly quickly. My dealer also attempted to charge me for $1,000 VLT instead of $40 that EVs were entitled to at that time. They also tried to charge me $499 doc fee instead of $100 max on X-plan.
Right. It’s an easy workaround in the form of doc or dealer fees. ADM by a different name.
 

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I am guessing that Ford/Farley's issue is with reservation/ordered units where the dealer sticks on an ADM to a customer who had a verbal agreement, handshake agreement or even some type of written agreement and then the dealer changes the price afterwards. These situations have caused Ford untold bad press across many different models. Bronco, MME, Maverick, etc.

I don't think Ford/Farley are concerned nor can they do anything about what price a dealer sets for their inventory.
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