Transition to EV, why Ford/GM still need dealers to sell the trucks?

[Roy2001]

With dealers to have hundreds of cars/trucks in parking lots, we finish purchasing within a few hours and drive home with a new vehicle. But this model would add the cost because dealers have to borrow the money and rent/buy land then order the vehicles. In addition to that, they have to slash the price of slow selling vehicles.

With F150 Lightning order procedure, do you guys feel that we don't need them? All we need is to have Lightning ship to dealers so we can pickup. I don't see ANY value to have them interfere our purchase procedure.

I believe once Ford/GM started to order/configure online, they would abandon the dealership inventory. Dealers would only help to deliver and provide services. They are redundant when we order the vehicles.

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[SmoothJ]

Unfortunately its based on the state laws currently in place. Look at Tesla had a hard time selling in certain states.

Also, Ford has stated they might be switching over to a just in time approach:

https://www.caranddriver.com/news/a37187201/ford-build-to-order-online-ordering-changes/

 

[Roy2001]

Unfortunately its based on the state laws currently in place. Look at Tesla had a hard time selling in certain states.

Also, Ford has stated they might be switching over to a just in time approach:

https://www.caranddriver.com/news/a37187201/ford-build-to-order-online-ordering-changes/

Good to know. If dealers don't have the inventory and we just order online, we really don't need them to order.

 

[sotek2345]

Good to know. If dealers don't have the inventory and we just order online, we really don't need them to order.

Yes, but state laws still protect them and prevent the major car brands from selling directly to you. Tesla found work arounds in some states (but not all) because they didn't have an existing dealer network - many of those work around have also been closed after Tesla to not allow anyone else. Only real way to fix it is to out lobby / out donate the Dealers with your state level elected officials. Then you need to have that happen in enough (and large enough) states to make it worthwhile for each Automaker to change over their business practices.

You also need some kind of methods to support the used vehicle market and some mechanism for service - especially warranty repairs.

 

[Nick Gerteis]

Good to know. If dealers don't have the inventory and we just order online, we really don't need them to order.

Ford knows this. I was on their website recently and they had me take a survey. One of the questions was “would you be interested in doing future vehicle purchases entirely online “. There were several detailed follow up questions to that, trying to nail down exactly where dealers still provide a value. This shows me that they are seriously thinking about changing the current system. Obviously they are going to follow current laws, but they are big enough to influence…..possible future changes in the law. It’ll be interesting to see.

 

[SmoothJ]

This will also remove the incentives that people love so much and it will make dealers almost obsolete except for signing, giving keys, and used car sales.

 

[techguydave]

I think a few of the legacy manufacturers understand that dealerships are an issue. They just need to break the stranglehold that dealerships have on lawmakers.

 

[techguydave]

This will also remove the incentives that people love so much and it will make dealers almost obsolete except for signing, giving keys, and used car sales.

Screw incentives, give me a hassle-free process at MSRP.

 

[SmoothJ]

Screw incentives, give me a hassle-free process at MSRP.

Blame the laws in place for that. A lot are honest, while others are in it for the money.

 

[Handle]

This article https://fordauthority.com/2021/12/the-chip-shortage-may-change-the-way-ford-does-business-forever/


A full 89 percent of new vehicles purchased this year have sold for near or above MSRP, compared to just 12 percent in 2019, and that doesn’t seem likely to change. “I would probably argue that some of that could be permanent,” said Jeff Schuster, LMC’s president of the Americas. “I don’t think pricing is going to come back down to pre-shortage levels or incentives are going to increase.”

 

[SmoothJ]

I forgot to mention that Ford has something like: Ford Express Buy

https://www.carsdirect.com/automoti...ress-buy-will-offer-online-car-buying-in-2021

 

[astricklin]

This will also remove the incentives that people love so much and it will make dealers almost obsolete except for signing, giving keys, and used car sales.

It seems like the auto industry is going to attempt to keep prices near MSRP and do away with heavy inctives. I have also read that Ford is looking to decrease the amount of inventory that dealers are holding and get more people to order vehicles. Obviously there will need to be some amount of dealer inventory for customers who need to replace a vehicle immediately and cannot wait several months for a custom build.

 

[duallyben]

First of all, I dislike this process for ordering vehicles through a dealer, I have only had bad experiences where they screw it up between you sitting with them and inputting into their system.
But, in saying that I won't consider a tesla or rivian due to the lack of dealer support as well. Also if you get into a car accident or your car dies and need a new one waiting for a month+ does not work either. I hope the dealer model does change, but finding the happy median won't be something that will instantly happen.

Imo do as the Japanese or Korean manufactures do atleast in Canada and group options into packages mostly and so if you want an option, you get this package. Limits choice, but also will limit excess inventory. I purchased a new highlander 6 years ago, walked into 4 dealerships in two hours, told them the color and trim and best out the door price. Prices varied, but in the end I spent little time and got what to me was the best bang for my dollar.

 

[BrownHornet]

I think the manufactures like the separation from the customer. While they may not be thrilled with everything the dealers do they don't have to deal with annoying customers.

Getting money for selling your product is good. Dealing with needy customers is probably not worth the hassle or extra resources they'd have to add.

 

[Lime Green]

When Tesla was fighting the Colorado legislature to open up their second location, Ford and Toyota had statements prepared on Tesla's behalf. In short, the legacy automakers are not too keen on the laws protecting the dealerships and how much power these dealerships have over their products. The only people opposing Tesla, Rivian and others from opening factory stores have been the Auto Dealers Association and their lobbied officials. So we no longer have all the restrictions here in regards to factory stores and direct sales. Many other states are progressing similarly. Some states (looking at you, Texas... And most of the South-Eastern seats) love to pretend they're all about freedom and personal rights and such, but they're all a bunch of ass-backward cronies and hillbillies that continuously sabotage their own self-interests.

I think the days of dealerships setting prices on new vehicles and charging ADM and all that are numbered. They're only accelerating their demise by the shenanigans some are playing with the Bronco and Lightning. In states like ours, there's absolutely nothing standing in the way of Ford simply selling directly to the customer. All you'd end up with is a few butt-hurt dealerships that would cry foul because they couldn't screw a customer who desperately needed a new car or something.

Ford can't dictate the price a dealership sells a car for when that dealership is the middle-man or reseller from Ford to the end customer. However, if Ford sells the vehicle directly to the customer and just uses the dealership as a delivery and service location, paying the dealership a pre-negotiated commission and service fee for delivery of the new vehicle, then suddenly all that AMD nonsense and differing fees all go away. Dealerships can focus their marketing efforts on their service departments and aftermarket sales.

In the near term, Ford or other automakers could set up their own factory stores in certain locations that would sell at MSRP and that would all but stop the price-gouging at other dealerships within a certain radius. Also what would really curb the price-gouging and shenanigans is if Ford would just go off time-stamps on their custom orders and not prioritize their bigger dealerships with more allocations. Not only is the current system, especially the way it's been handled with the Bronco, completely unfair to customers, but it makes it very hard for newer or smaller dealerships to find any traction in the market.

Makes me sick knowing I've never been able to convert my day-1 Bronco order and yet a local dealership I drive by almost daily is part of a national conglomerate who's getting tons of allocations. They routinely have 4 or 5 Broncos parked out front with $15K+ ADM added to the sticker price. I'm still not convinced that my first few minutes Lightning reservation won't turn out the same way.

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