Ford CEO Responds to Price Markups

[skadizzle]

I could see the dealer model surviving, albeit probably smaller in size. They still have service centers and used vehicles. For new models, they would be a glorified showroom, but they could still place stock orders to sell on the lot. Not everyone who wants a new car/truck has the time to wait 3-4 months or god forbid like us a year or more for a new vehicle. Some people need a vehicle NOW. Sure they could buy a used vehicle, but they should have the option to buy a new one on the lot. If the dealer wants to mark it up, its on them. They own the vehicle.

I would even be okay with retail orders delivery going through dealers (as long as Ford holds them accountable). They could just take their hold back from Ford as their profit and if buyers want to use their financing. I could see the new car ordering be like purchasing a gun. You can't just buy a gun and get it sent to your house. You still have to go to through an FFL to pick it up and pay a transfer fee. Just do the same thing, but make Ford pay that transfer fee or include it in the MSRP.

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[TheWizziard]

Out of the frying pan and into the fire.

I have zero love for the dealer model but if you think direct to consumer is going to bring you lower or fair prices you are being ignorant. OEMs will increase the price on their own, you'll just think it's a good deal since it's at MSRP.

So it's better that dealers are charging $54,000 over MSRP

 

[day004]

Exactly, couple that with the fact that most people have no clue as to why legislation was put into effect as to why manufacturers can't sell directly to consumers because they are to lazy to do the research.

It's not a thing that just happened there was a very good reason why outlawing direct to consumers legislation was put into place and I guarantee you that if it's repealed automobile manufacturers will eventually go back to their slimy ways.....

That's not entirely true. It doesn't take too much imagination to understand that dealer lobbying group gave lots of money to politicians seeking re-election to support that legislation.
As long as we allow corporate money to dictation anti-consumer laws ,we'll continue to cede our rights to "Corporate America".

 

[Jmav2152]

So it's better that dealers are charging $54,000 over MSRP

That's not what I said.


Atleast dealer model you can always find another dealer to play ball. If ford Says it's X price, that's it. You can find or do anything better. Pros and cons to both.

 

[TheWizziard]

On June 16, 2021 I reserved my Maverick XL Supercrew on the Ford Site. Advised by Ford to contact Tamiami Ford.
I contacted Tamiami Ford regarding my reservation. Communicating with their sales representative Timothy Stack. I ordered my Maverick XL with co pilot and was assigned order number 7047 On August 2, 2021 quoting a net price of $22,185
During my conversation with Stack I specified that the vehicle was not to be modified in any way and he assure me it would't be. Further that the only added costs to my order would be tax and title as well as the processing fee.
As my estimated time of delivery in November was constantly changed I contacted my newly assigned agent Wayne Weis many times concerning the delays and possible delivery as I needed a car in January.
Finally on April 17' 2022 at 0930 in the morning my long awaited order received a vin 3FTTWB8E33NRA66434 was to be produced the week of May 9.
This was followed by another notice that the vehicle was in shipment on May 18, 2022
On Monday morning July 11, 2022 I received a call from my newly assigned sales agent that my Maverick was in and the window tinting looks good. I told him tinted windows in my home state were illegal and I instructed him to have them removed for that reason and the fact that I specified in my sales agreement with Timothy Stack.
I was subsequently contacted by Weis who refused to remove the tinting telling me he could get "$12,000 more for my truck on the lot.
I was then notified that Tamiami Ford was returning my deposit and check and that the truck was immediately sold for $7,800 more.

And yet there are those on this forum that still support the dealer model. If the dealers want to survive they need to clean up their own industry. There are good dealers but the bad ones ruin it for the rest.

 

[Decayed]

could not be further off the mark. I worked multiple hourly jobs in auto repair and related growing up. I also worked union jobs in a school district and also Aerospace/Defense and those experiences were horrible and basically only helped union officers get richer, protected lazy and incompetent people and added tons of cost and delay to products being built. I would never do it again...

I also completed a technical course offered at a local community college to get my license as a CA State Certified Smog Inspector. THAT was where I learned a lot of history on the auto industry and how it produced jobs in the USA. Our current president is a shill for the unions and you always hear him promising "good paying union jobs" everywhere he can injected into all govt policy- because they tend to funnel a lot of campaign donations to elected officials like protection money in a circle of quid pro quo.

My point was not that UNIONS=GOOD, but when people push for things that may sound good on the surface, there almost always are unintended consequences that happen to make a "solution" worse than the "problem" people thought they were fixing. "Progress" isn't always what it is made out to be.

There is a reason so much stuff gets outsourced to china. One is that in the worker's paradise, unions are illegal.

 

[NJBob]

So it's better that dealers are charging $54,000 over MSRP

Makes me think of the recent Springsteen concert fiasco. Ticketmaster was not happy that scalpers were selling tickets at inflated costs. So they introduced dynamic pricing. This resulted in some fans paying 4K for a single ticket. I could see the car manufacturers instituting something similar. They want the money themselves. Along with a subscriptions for certain features like heated seats. Much like the NFL with seat licenses made it unaffordable for the average Joe.

 

[TheWizziard]

That's not what I said.



Atleast dealer model you can always find another dealer to play ball. If ford Says it's X price, that's it. You can find or do anything better. Pros and cons to both.

I do agree that if people would refuse to pay $54K over MSRP the dealers wouldn't do it. These buyers are complicit.

But what about the other poster that after 12 months the dealer sold the truck out from under him because he refused to pay for window tint. He walked away but at what inconvenience?

 

[TheWizziard]

General Electric moved their plant from Erie, PA to Dallas and are paying workers half. I highly doubt those non-union workers are living as great of lives as they lead. I’m from Minnesota and live in VA. Cops and teachers make 40-60% less here than in Minnesota. Houses are more expensive here in VA too. Right to work

General Electric no longer builds locomotives.

 

[Jmav2152]

General Electric no longer builds locomotives.

Yea that plant is still in Erie its jus5 under wabtech now.

 

[jesusdad]

What you and nearly everything other person almost definitely don’t know is that Ford has been and continually cuts the holdback that dealers make behind the scenes on sold vehicles.

This 'everyone else must be wrong and I am the only one who is right' thing isn't helping you. Also, intentional or not, some of your comments are coming off a bit like 'well we are only doing this to the customers because ford is doing it to us'. And to that, I would ask how you suppose the dealers who are not engaging in questionable pricing are surviving?

 

[TheWizziard]

Yea that plant is still in Erie its jus5 under wabtech now.

Yes I know it well. I did my apprenticeship there. Many moons ago

 

[TheWizziard]

I am not sure how the name match policy is going to prevent price markups.

 

[Demoguy1]

Excellent news and hope it works.. Too much red tape and government control is just as bad or worse than not enough. Is the actual interview available anywhere that isn't behind a paywall?

Red tape and governmental control is what's needed to stop the dealers from the crazy markups. Most companies and dealers operate legitimately. Controls are needed for company's who are always looking for loopholes. My opinion.

 

[Demoguy1]

Then maybe. We can cut out those “greedy” grocery stores marking up milk. Those “greedy” department stores marking up clothes and shoes. And those “greedy gas stations marking up fuel. We’ll show all those greedy jerks that were on to their scams.

Nonsense comparison. No one is complaining about typical markups.

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