Exactly what determines dealer allocations?

[Jatrax]

Because if it wasn’t like that , CA,TX and FL wouod get most of them and everyone else would fight for scraps.

Not sure I understand what you mean. If you order at the Ford website what difference does the state make?

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[NoVaJimmy]

The allocation system makes sense when dealers are ordering for stock to put on the lot. It makes sure all dealers, large or small, get something close to what they need. Well, in a 'normal' time anyway.

But when retail customers are going to a website and placing an order and then selecting a dealer that they want that order to be delivered to the allocation system no longer makes sense. In fact, it becomes a disaster. Who cares how many 'allocations' a dealer has if a customer placed an order?

When customers place a retail order on the Ford website those orders should be built in time stamp order (allowing for parts availability) regardless of dealer allocations.

What Ford does anyone order online?

 

[NoVaJimmy]

Not sure I understand what you mean. If you order at the Ford website what difference does the state make?

I don't know about TX and FL but I think California has their own corporate average fuel economy standards system that manufacturers need to abide by to avoid fines. I think other states might as well but I'm not sure. If this is true Ford would probably send more Hybrid Mavericks to California for instance to lower their corporate average fuel economy within the state. I think the reality is that a very large number of Hybrid Mavericks were allocated to dealers in California too so that could just be another random variable in the allocation mystery.

 

[Jatrax]

What Ford does anyone order online?

With the Maverick you were allowed to 'build and price' online and then select a dealer. The dealer would contact you and close the deal.

Granted that did not work well. Actually not at all for MY23 because the build and price was not available until the order banks closed. But Ford has stated they want to move to that model. Order at Ford website and select the dealer you want it delivered to. Pay MSRP and then negotiate with the dealer for your trade and any dealer add ons.

Regardless my point above was that allocations work when the dealer is ordering on spec for stock to be sold off the lot. But when a retail customer places an order that should bypass the allocation system. It doesn't matter if the order was placed at a dealer or on Ford's proposed website system. It's an actual order, not a dealer buying to sell.

 

[NoVaJimmy]

With the Maverick you were allowed to 'build and price' online and then select a dealer. The dealer would contact you and close the deal.

Granted that did not work well. Actually not at all for MY23 because the build and price was not available until the order banks closed. But Ford has stated they want to move to that model. Order at Ford website and select the dealer you want it delivered to. Pay MSRP and then negotiate with the dealer for your trade and any dealer add ons.

Regardless my point above was that allocations work when the dealer is ordering on spec for stock to be sold off the lot. But when a retail customer places an order that should bypass the allocation system. It doesn't matter if the order was placed at a dealer or on Ford's proposed website system. It's an actual order, not a dealer buying to sell.

NADA is a very powerful entity with their hands very deep in politician's pockets on both sides of the aisle. Look at what they're doing to Tesla in some states. They are successfully defending the legion of slimy dealerships out there looking to take advantage of anyone they can and they are willing to die on that hill before allowing Ford or any manufacturer to take away their ability to fleece customers by moving to a direct sales approach kind of like Tesla.

I hate the dealership model too and would love to buy a new car online but unfortunately the Maverick reservation system was nothing more than a lead generator for dealers, there was nothing binding about doing an online build for your Maverick and it was essentially a sales lead generator. As for Ford's allocation system, they are doing what is best for their corporate model and profits. They don't really care about upsetting Jane and John Doe from smallsville because their customer is the independently owned dealerships and they reward the dealers who consistently outperform with allocation. A first come first served model will never be in place with Ford no matter what Jim Farley or any spokesperson says because they are trying to keep their top performing dealerships happy, the ones who make them a ton of money in sales, service and finance, not you and I.

 

[fordvideoguy]

@fordvideoguy maybe you could best explain the complicated mess of dealer allocations for @JBryant

@JBryant Dealer allocations are figured by a dealers sales volume each month and gives allocations based on a rolling 12 month average. On the Maverick, it's not based 100% on Maverick sales. 30% is based on Maverick, the other 70% is based on Escape, Ranger, and Bronco Sport sales as well.

 

[JBryant]

@JBryant Dealer allocations are figured by a dealers sales volume each month and gives allocations based on a rolling 12 month average. On the Maverick, it's not based 100% on Maverick sales. 30% is based on Maverick, the other 70% is based on Escape, Ranger, and Bronco Sport sales as well.

Thanks a lot for the info. Now a followup question. I have one ordered for my wife at our local small town dealer and one ordered for me at a large volume dealer in Ft. Worth. Do large volume dealers get builds done first, or does it not matter?

 

[Automate]

70% is based on Escape, Ranger, and Bronco Sport sales as well.

I think this is the key. They are trying to incentivize the dealers to sell more higher margin Escapes, Rangers and Bronco Sports by leveraging the high demand for the Maverick.

 

[KevCuRaoi]

Sometimes I think that this is close to the truth!!

The regions/zones need to "sell" the allocation they get to dealers. Not as much of an issue now...but when inventory levels were higher, the Ford reps would try to push unpopular vehicles on us (a small rural dealer). We often weren't offered the vehicles that we actually sell in our area (esp F-150s & Escapes)....but they'd want to push big Transit vans and Expeditions, vehicles that we don't sell many of.
We might have to take an undesirable unit in order to get one we actually wanted.

So it is total production capacity that dictates allocation more than anything else. And then this is spread out over the regions, zones, and dealerships based on sales history & market share. With a little bit of "retail orders" and "luck" thrown into the mix as well!

 

[Lonnie gee]

Everyone seems to have opinions, but no one addresses the subject directly. Exactly what determines dealer allocations? For instance, my dealer where I have my 23 Hybrid Lariat ordered stated yesterday when I called him, "We have 34 Maverick allocations for December." Does that mean that 34 Mavericks are allocated to be built for customers who ordered from that dealer for the month of December? What is the criteria for Ford choosing which ones are to built in which month? I think the dealer told me a couple weeks ago that they had ordered about 240 Mavericks for their customers during the week the order bank was open. Do they go by date ordered, or what? I am totally confused and hope someone has the answers.

 

[Lonnie gee]

That’s good commanderbob

 

[Your_Cousin_Vinny]

I think this is the key. They are trying to incentivize the dealers to sell more Escapes, Rangers and Bronco Sports by leveraging the high demand for the Maverick.

I understand this from a business perspective 100%, but it irritates me none the less. The maverick is proving to be a niche product that is snapping up compact car conquests from other brands that the escape, butch escape and definitely not the ranger, clearly aren't having the same effect on, versus perspective rav4/crv upsells/trade-ins. As a personal anecdote, there was nothing left in the Ford lineup that I wanted until the Maverick, so I'm at least one case in point to having allocations be more Maverick-dependent than the other models, as there was nothing to get me into a dealership in the first place.

But again, I totally understand the business of upselling.

 

[JBryant]

That’s good commanderbob

Just think about it for a minute. When we all get this problem solved, then we can tackle all the problems the government refuses to fix. This would be a good bet line as to which gets solved first - Ford Maverick situation or US Government situation. Toss up at best.

 

[fossil]

good news is there are 5 new chip plants being built, 2 in Arizona, 2 in Ohio and the largest one ever built in New York.
bad news is it will take a couple years.

 

[aitch-2-oh]

At minimum, the allocations for ‘23’s have a ‘sales history’ reference point, something the ‘22’s didn’t, forcing FoMoCo to forcefully and repeatedly shake their Magic 8-Ball algorithm machine.

[Enter The Wayback Machine]

Chicago Auto Show, February ‘22, Lariat Lux Hybrid order placed 5 months prior. Waited patiently within the Blue Oval space for the ‘most senior’ representative to become available to answer one simple question, which was eventually asked.

To be honest, he didn’t run, screaming, from the booth, as if his hair was on fire. But his pupils did constrict and his jaw clenched, making it difficult to utter this response: “not a chance”.

The question? “Can you please explain how allocations are factored per dealer?”

As we walked away, my wife (Commander Obvious) stated “I think you hit a raw nerve”.

End of session, we now return to our regularly scheduled programming…

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