Wow, 3-4 month wait. My local Genesis dealer was finding GV70s within 2-4 weeks. Now that was back in October so maybe things are worse now.
Changes are Coming
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Saw this news on Fox News today. Won't be a surprise to Nick, but dang, is Ford clamping down hard on dealers now? I can't believe, though, that "about 10% of the dealer network has been charging above MSRP on their existing models."
Ford CEO Farley cracking down hard on $3.6 billion dealer markups
By Gary Gastelu FOXBusiness
FOX Business’ Grady Trimble and Ford CEO Jim Farley discuss electric vehicle production and the chip shortage impacting the auto industry.
Ford CEO Jim Farley doesn't want dealers overcharging for the company's electric vehicles. During the automaker's earnings call Thursday night, the Ford CEO reiterated his commitment to eliminate the "unreasonable markups" some dealers have been charging amid the shortage of new vehicles.
Ford's head of sales, Andrew Frick, had previously sent a letter to dealers in January warning they could lose their F-150 Lighting allocations if they tried to get reservation holders to pay additional fees to place final orders for the upcoming electric pickup.
But Farley said about 10% of the dealer network has been charging above MSRP on their existing models.
"We have very good knowledge of who they are, and their future allocation of product will be directly impacted," Farley said. Barclays analyst Brian Johnson estimated the value of the markups at $3.6 billion, or roughly half the increased revenue per unit Ford reported last year.
Ford is particularly concerned about its electric vehicle sales, which compete with brands like Tesla and Rivian that don't used franchised dealers and are in direct control of their pricing. "This is quite an important topic because the margins that we want to build to in BEV (Battery Electric Vehicle) are gonna be heavily dependent on a different go-to-market and customer experience," Farley said.
"I won't go into any more than that, but this is a quite important lesson for us of the franchise system and the way we will manage going forward."
General Motors President Steve Carlisle also sent a letter to dealers last month informing them that they may lose their allocations of overbooked EVs and the upcoming Corvette Z06 if they are "tempted to profit" off the current shortage, The Detroit Free Press reported.
Ford CEO Farley cracking down hard on $3.6 billion dealer markups
Won't send dealers cars if they charge too much
By Gary Gastelu FOXBusiness
FOX Business’ Grady Trimble and Ford CEO Jim Farley discuss electric vehicle production and the chip shortage impacting the auto industry.
Ford CEO Jim Farley doesn't want dealers overcharging for the company's electric vehicles. During the automaker's earnings call Thursday night, the Ford CEO reiterated his commitment to eliminate the "unreasonable markups" some dealers have been charging amid the shortage of new vehicles.
Ford's head of sales, Andrew Frick, had previously sent a letter to dealers in January warning they could lose their F-150 Lighting allocations if they tried to get reservation holders to pay additional fees to place final orders for the upcoming electric pickup.
But Farley said about 10% of the dealer network has been charging above MSRP on their existing models.
"We have very good knowledge of who they are, and their future allocation of product will be directly impacted," Farley said. Barclays analyst Brian Johnson estimated the value of the markups at $3.6 billion, or roughly half the increased revenue per unit Ford reported last year.
Ford is particularly concerned about its electric vehicle sales, which compete with brands like Tesla and Rivian that don't used franchised dealers and are in direct control of their pricing. "This is quite an important topic because the margins that we want to build to in BEV (Battery Electric Vehicle) are gonna be heavily dependent on a different go-to-market and customer experience," Farley said.
"I won't go into any more than that, but this is a quite important lesson for us of the franchise system and the way we will manage going forward."
General Motors President Steve Carlisle also sent a letter to dealers last month informing them that they may lose their allocations of overbooked EVs and the upcoming Corvette Z06 if they are "tempted to profit" off the current shortage, The Detroit Free Press reported.
I call bull shit he doesnt care what dealership mark them up as. Aslong as they sell.Saw this news on Fox News today. Won't be a surprise to Nick, but dang, is Ford clamping down hard on dealers now? I can't believe, though, that "about 10% of the dealer network has been charging above MSRP on their existing models."
Ford CEO Farley cracking down hard on $3.6 billion dealer markups
Won't send dealers cars if they charge too much
By Gary Gastelu FOXBusiness
FOX Business’ Grady Trimble and Ford CEO Jim Farley discuss electric vehicle production and the chip shortage impacting the auto industry.
Ford CEO Jim Farley doesn't want dealers overcharging for the company's electric vehicles. During the automaker's earnings call Thursday night, the Ford CEO reiterated his commitment to eliminate the "unreasonable markups" some dealers have been charging amid the shortage of new vehicles.
Ford's head of sales, Andrew Frick, had previously sent a letter to dealers in January warning they could lose their F-150 Lighting allocations if they tried to get reservation holders to pay additional fees to place final orders for the upcoming electric pickup.
But Farley said about 10% of the dealer network has been charging above MSRP on their existing models.
"We have very good knowledge of who they are, and their future allocation of product will be directly impacted," Farley said. Barclays analyst Brian Johnson estimated the value of the markups at $3.6 billion, or roughly half the increased revenue per unit Ford reported last year.
Ford is particularly concerned about its electric vehicle sales, which compete with brands like Tesla and Rivian that don't used franchised dealers and are in direct control of their pricing. "This is quite an important topic because the margins that we want to build to in BEV (Battery Electric Vehicle) are gonna be heavily dependent on a different go-to-market and customer experience," Farley said.
"I won't go into any more than that, but this is a quite important lesson for us of the franchise system and the way we will manage going forward."
General Motors President Steve Carlisle also sent a letter to dealers last month informing them that they may lose their allocations of overbooked EVs and the upcoming Corvette Z06 if they are "tempted to profit" off the current shortage, The Detroit Free Press reported.
I think it is a reflection of just how important getting EV sales off the ground and in the right direction is. There is no going back to ICE if they fail for any reason.
Oh, yeah. Really loving it. The more I get to drive it, the more I appreciate how great a vehicle it really is. Style, comfort, luxury, very intuitive controls, very adequate power, nice useful features, yadda, yadda, yadda.
Doesn't change the fact that they will not control what a dealership sells the vehicles for. Unless ford plans to make up the difference what it could of sold for vs what it does sell for. Look at the mark ups on the Mach E. Ive seem them 10k + over msrp and people paying it.
They most certainly can squeeze them financially. Hell, China is doing similar with the Olympics as we speak. They are forcing athletes to keep silent with criticisms against the Chinese government or face (financial) punishments. Meaning, even when they return to the U.S. they cannot voice opinions critical of the CCP for fear that their sponsors in the U.S. who do business with China will drop them due to pressure from China. It's all about the money. Don't think for a minute that Ford won't squeeze dealerships to toe the line to ensure their (Ford's) future financial stability. Right now, it's more about selling EVs around the corner, as @Weather Man alluded to.
If you can see the markups, so can the district reps.
Correct
Will see how this actually plays out.
As for the Olympics ive been over it since bruce became caitlyn.
I hope this is in the correct thread,...........
www.thedrive.com
Ford Boss Puts the Kibosh on ‘Unreasonable’ Dealer Markups
Jim Farley has his eyes on the brand's dealerships, and he's not afraid to pull vehicle allocations for those who step out of line.
www.thedrive.com
That's really all we can do. My perspective might prove right. Yours might prove right. Uncertain times in so many ways.
It's all PR crap, Ford really doesn't care nor does GM. They are just trying to save face with the public and give the appearance that they are doing something.
I was talking to a reputable Chevy dealer who was claiming online they weren't charging over MSRP. When I inquired about putting a deposit on a 2Z at MSRP (I knew I would have to wait) this is what they responded with.
So a 2-3 year wait and the old "we'll stick it in your ass if we can"
I was talking to a reputable Chevy dealer who was claiming online they weren't charging over MSRP. When I inquired about putting a deposit on a 2Z at MSRP (I knew I would have to wait) this is what they responded with.
So a 2-3 year wait and the old "we'll stick it in your ass if we can"
The OEM can't tell a dealership what to sell a vehicle for. The dealership buys the vehicle from the OEM when it rolls off the line.
Dodge/FCA came out a few years ago and said that they would reward/punish dealers based on how quickly they turned their Hellcat inventory related to ADMs...nothing ever changed nor happened.
With the EV stuff, Ford has a policy where vehicles cannot be priced online less than MSRP (which is also invoice on the EVs).
The only argument an OEM would have is that it could negatively reflect on the brand which would be violating the dealer agreement, possibly...but that's a fairly far stretch and would be difficult to prove, UNLESS there was an abundance of inventory sitting on lots with HUGE markups and not selling.
So what's your take on what Jim Farley said in the Fox News report, Nick? All fluff?
Definitely good PR.
Jim Farley is a great dude. Had a lot of fun conversations with him about his past in SCCA Racing and stuff...
He knows as well as anyone that he, nor Ford Motor Company, can dictate to dealers what they charge for vehicles.
I think point was that they'd reduce allocations to dealers that mark up the vehicles. They're probably within their rights to do that.
That does not fall within Ford's, or any OEM's, 'rights' as far as a Dealer Agreement goes.
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