Why dealer allotments no longer make sense

[Old Ranchero]

Buyers should be able to order direct from Ford while choosing a delivery dealership. The dealer adds no value to the pre-order process whatsoever.
Then builds should be scheduled via one group without any preference to dealer volumes.

People love Tesla for this method (minus the dealers)

Dealers still have their place as a service center, used dealer, and people who want to buy new right off the lot.

Tesla doesn't make trucks or affordable vehicles for the general population. They also have a more cult like following skewed to younger buyers, so I don't compare their practices or business model to Car manufacturers who have been around for decades, or even a century.

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[Shakesbear]

I agree. I also think that Ford needs to remove dealers from the special order process entirely. Their only involvement should be taking the vehicle in and prepping it for delivery to the customer once it is built. The rest of the process should be able to be completed online; Ford can compensate the dealers for handling the delivery.

Dealers can and should have stock units. Some people are not patient enough for special orders, others need a vehicle "now" for any number of reasons. That can continue with the allocation system.

As it stands now one has to rely on a dealership to input the order correctly, communicate effectively, and not to change the price or put "add-ons" on the vehicle when it is delivered. All that needs to end.

Watched a youtube video of a sales manager at the Salina, KS Ford dealer and he said that dealerships could only order one unit for their lot. All other orders were customer orders.

 

[DogNamedMaverick]

Tesla doesn't make trucks or affordable vehicles for the general population. They also have a more cult like following skewed to younger buyers, so I don't compare their practices or business model to Car manufacturers who have been around for decades, or even a century.

Ok.

 

[maningr]

If your order is a Priority 2, Ford is previewing your vehicle to build. Some of have been in preview for several months, with no scheduled build date. Vehicles can only be built if ALL components are available for that particular build.

..... and it aligns with your dealer having allocations. ALL parts could be there, but your dealer isn't in the right part of the cycle. Then... when the dealer IS.... all parts aren't there, or..... there are vehicles in the dealer system ahead of yours.

 

[coxwm2]

..... and it aligns with your dealer having allocations. ALL parts could be there, but your dealer isn't in the right part of the cycle. Then... when the dealer IS.... all parts aren't there, or..... there are vehicles in the dealer system ahead of yours.

What cycle are you referring to?

 

[maningr]

What cycle are you referring to?

the monthly/regional allocation cycle.

 

[Slammer]

try thinking outside your own age demographic here. Many Sr citizens and just plain retired folks don't prefer doing everything on-line... and we buy new cars!

Then someone has an opportunity to fill a niche going through the online process for them. Think of a paid assistant for the process, rather than a giant dealer

 

[Slammer]

Producer makes a product, customer orders online, item is delivered.
I order a laptop. The laptop is delivered to me or to a holding area. It doesn't go to a Third Party Laptop dealer who then preps and dealer markups my laptop and sells it to me.
There is a market here. This is the transition phase between Manufacturer Dealership and customers ordering and receiving directly. We're in the transition between the old system and the future system.

 

[coxwm2]

the monthly/regional allocation cycle.

Dealers are provided monthly allocations. Form listening to Tim Bartz broadcasts on Youtube, a dealer may receive an allocation for a specific build (XL, XLT, FE). That does not guarantee that those allocations will be fulfilled in that month, due to commodity constraints, or other restrictions to production. Constraints, early in the production cycle, were somewhat unpredictable, as Ford did not know how many of a specific build configuration would be ordered in MY22. with MY22 orders now closed Ford can work to fulfill as many, if not all, of the orders in the system prior to the close of MY22 production in August(?).

Tim used the example of the CP360 option. Ford estimated 50% of orders would include CP360, when the percentage after orders closed is at 58%. So, Ford under-estimated the CP360 option by 8%. To fulfill all orders, the supply chain for that option package needs to ramped back to provide that 8% shortfall, if possible. That is not as easy as it sounds, as every disruption in the supply chain, creates a domino effect creating other disruptions.

I ordered my Maverick on June 15, 2021, and do not have a build date. FE Hybrid, Lariat Lux package, Rapid Red. That build has at least 3 constraints that I am aware of. I am willing to wait, as I ordered the truck the way I want it built, and will not "settle" for less.

 

[Trucklet]

I ordered my Maverick on June 15, 2021, and do not have a build date. FE Hybrid, Lariat Lux package, Rapid Red. That build has at least 3 constraints that I am aware of. I am willing to wait, as I ordered the truck the way I want it built, and will not "settle" for less.

Kudos to you for sticking to it and not compromising. I passed on essentially every option and plan on doing as much as I can later (SIBL for example). I target my frustration at the allocation system and not the constraint items because as an XL EB I don't have any constraint items to speak of, except for that one odd week where Ford literally ran out of tires in the proper size for the steelies.

 

[UncleDuke]

Well I ordered from my local dealership. Live in a town of 21,000 and Ford is the only local car dealer. My sales guy has become a friend over the years as has the service manager. Why would I drive 1267 miles to Kansas to buy a truck?? I always try to support local businesses over say a Walmart.

Next Thursday will be 8 months since order confirmed! First Edition, Hybrid with all the bells and whistles. Not willing to settle for anything less.

On the bright side, All First Editions will be built in my/22 as it is the only year that they will be produced. So I will get it. Now if I get it the first week in September right before the my/23 come out I will be pissed!

But this allocation system will only hurt the small dealers, as I feel they will lose repeat customers to the mega dealers.

 

[LoveMyTaters]

Only way to get small town dealerships to sell more vehicles is. Ship them to them ....

 

[JASmith]

If we're asking that question, we might as well expand on it and ask why you need all the overhead and expense of a middle-man at all?

Ford dealership profits have been insane every month, hitting records never before seen, and guess who is paying for that? Its not Ford!

With a build-to-order model, there's no reason you couldn't design a website to allow customers to configure and order their vehicles themselves, and financing anyone can do in 10 minutes online just inputting some basic information.

Then have it delivered straight to your door, Carvana style.

For selling old vehicles or servicing existing ones, you really don't need a Ford dealership for that, as you could consolidate to non-brand specific private service centers and used car buyers/sellers. These already exist anyway, so can just expand to fill any vacuum.

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