🛑 Dealer Memo: Ford Will Suspend New Maverick Ordering Until This Summer

[Bob The Builder]

Anyone know if this has ever happened before in the automotive world? Such heavy demand that the automaker couldn't keep up? Did this ever happen with the Volkswagen Beetle?

It would be interesting to know what the production capacity of the Mexico plant would be under ideal conditions, no supply chain issues, staffing issues that type of thing. Ford has been building vehicles for a long, long time so even though I hate to assume, I will assume they have this figured out by now. LOL. But joking aside everyone is struggling. I have not received my mail from the PO for a week now due to staffing shortages and one cannot go to the PO and get the mail as they are all sorted in delivery boxes waiting to be loaded on those right hand steering Jeeps. They have their own method for their madness.

It's rough right now in a lot of ways and even though optimistic is my middle name, I feel things are not going to get better in the short term.

Sponsored

 

[bpcooper14]

I'm curious what Ford had originally projected as their target number of sales they hoped to achieve and what that breakdown was (hybrid vs. eco). It would be interesting to see number of fulfilled reservation numbers, numbers currently in production, numbers scheduled for production, and number of confirmed orders yet to be scheduled (with a breakdown of hybrid vs. eco).

 

[Rickus]

With limited supply and excessive demand those $10,000+ markups with be the norm now not the exception.

And you will see Mavericks begin to sit on dealers lots. A huge majority of people are looking for an "affordable" entry vehicle. Markups take that away from them.

 

[Turtle]

 

[Turtle]

Updated with dealer memo:

Glad I ordered when I did.

Background to this from a Wall Street Journal article:

Ford Shuts Off Orders for New $20,000 Maverick Pickup

Auto maker says demand for new truck has surged and it has hit limit on what it can build​

​

Ford Motor Co. is taking the unusual step of cutting off customer orders for the Maverick, a more affordable pickup that it rolled out last fall, saying it has maxed out on what it can build.​

​

The move is a sign that American shoppers are hungry for more-affordable options as prices for new cars and trucks hit new records and availability remains constrained on dealership lots.​

​

Ford told dealers Monday that it is suspending customer orders for the Maverick pickup truck because it is already straining to fill a backlog. The company will resume taking orders for the 2023 Maverick in the summer, it said in a memo to dealers, reviewed by The Wall Street Journal.​

​

“We didn’t want to take more orders than we could build,” said Dean Stoneley, general manager of Ford trucks, in an interview. “We’re getting customers who would have perhaps bought a used car and are now buying the Maverick because it is so affordable.”​

​

The strong reception for the Maverick—which starts at about $20,000—comes as car prices soar and auto makers offer fewer entry-level choices, dealers and analysts said.​

​

New-car prices had been outpacing inflation for several years even before pandemic-related supply-chain disruptions sent prices sharply higher. Last year, the average price consumers paid for a new vehicle jumped 13%, to a record $40,457, according to research firm J.D. Power.​

​

Now, with thin dealer inventory from a nagging computer-chip shortage creating a seller’s market, shoppers are struggling more than ever to afford new wheels, data show.​

​

Dealers have had trouble keeping vehicles of any type in stock because of the chip shortage, which has crimped production for the past year. Ford dealers say the Mavericks that arrive on their lots already are earmarked for customers who preordered them.​

​

Shutting off customer orders is unusual, said Chris Lemley, president of Sentry Auto Group, a Boston-area Ford-Lincoln-Mazda dealership. “But it’s appropriate under the circumstances to avoid customer disappointment.”​

​

Most Mavericks are selling in the mid- to high-$20,000 range, Mr. Lemley said. “We desperately needed something in that price range,” he said.​

​

Ford rolled out the Maverick last year as a more-manageable alternative to the big pickups that now dominate the U.S. market. The truck has drawn many first-time truck buyers who migrated from sedans or small SUVs, dealers said.​

​

Ford in 2018 decided to eliminate from its lineup the cars that had long served as entry points for new car buyers, including the Fiesta and Focus, which were money losers, executives have said.​

​

Ford’s move to ditch entry-level cars frustrated many dealers, who say it left them few options to offer shoppers for less than $30,000.​

​

Other car companies have also followed suit in recent years, jettisoning budget small cars and hatchbacks from their showrooms and adding more higher-priced trucks and SUVs to fatten profit margins.​

​

There are five nameplates in the U.S. today with an average sticker price of $20,000 or less, down from 19 a decade ago, research firm Cox Automotive said.​

​

Affordability of new vehicles hit an all-time low in December, according to an index from Cox Automotive and Moody’s Analytics. The number of weeks of income needed to purchase a new vehicle hit 43 on average in December, the firms said. The index ranged between 32 and 36 weeks for nearly a decade before it began rising sharply in 2020.​

​

The average monthly payment for a new vehicle also has climbed, up nearly 20% in December from a year earlier, to a record $688, Cox estimates.​

​

Mr. Stoneley declined to say whether the Mexico-built Maverick is profitable but said Ford is able to reduce costs because the truck is built with many common parts from other models, including the Escape and Bronco Sport SUVs.​

​

He added that Ford will still ship some trucks to dealers in coming months in an effort to replenish stocks, but customer orders will be suspended until summer.​

​

Because the Maverick is a new entry that is smaller and cheaper than other pickups in the market, it has been difficult for Ford to forecast demand, Mr. Stoneley said.​

​

J.D. Power expects Ford to sell at least 80,000 Mavericks in the U.S. this year. Research firm AutoPacific forecasts about 95,000 in sales this year and 120,000 in 2023.​

​

In the past two years, Ford has introduced several well-received new models, after allowing its lineup to get stale, dealers and analysts have said.​

​

Buzz around new entries such as the Bronco, the off-roader that recently returned after a quarter-century hiatus, and especially electrics like the Mustang Mach-E SUV and the forthcoming F-150 Lightning pickup truck has helped drive Ford shares to a 20-year high.​

​

Chris Goeschel, an executive at a Las Vegas Ford dealership, said he has seen strong demand from local business owners, including electricians or pool-maintenance companies, for Maverick models in the mid-$20,000s.​

​

“It’s got a lot more utility than people have come to expect in that price range,” he said.​

​

The strong reception for the Maverick—which starts at about $20,000—comes as car prices soar and auto makers offer fewer entry-level choices, dealers and analysts said.​

​

New-car prices had been outpacing inflation for several years even before pandemic-related supply-chain disruptions sent prices sharply higher. Last year, the average price consumers paid for a new vehicle jumped 13%, to a record $40,457, according to research firm J.D. Power.​

​

Now, with thin dealer inventory from a nagging computer-chip shortage creating a seller’s market, shoppers are struggling more than ever to afford new wheels, data show.​

​

Dealers have had trouble keeping vehicles of any type in stock because of the chip shortage, which has crimped production for the past year. Ford dealers say the Mavericks that arrive on their lots already are earmarked for customers who preordered them.​

​

Shutting off customer orders is unusual, said Chris Lemley, president of Sentry Auto Group, a Boston-area Ford-Lincoln-Mazda dealership. “But it’s appropriate under the circumstances to avoid customer disappointment.”​

 

[Mike]

Dealer took my money just hrs ago said order was going in today so guess I should be good.

I understand Ford will build and prioritize the higher profit margins Lariat's first

 

[BlueOval5.0]

My dealer emailed me also. We just test drove one on Saturday. I enjoyed it, quite a bit different than my Ranger. Better ride. Styling not quite as nice, yes that is subjective. it did have a heated steering wheel, nice feature. I need to $hit or get off the pot.

 

[DJF]

Just called my dealership to make sure my order on 1/14 is OK. He said there is a good possibility that mine might need to be re-ordered as a 23 if Ford tells them they will not be able to get it built as a 22.

 

[TSAINTS1115]

Just called my dealership to make sure my order on 1/14 is OK. He said there is a good possibility that mine might need to be re-ordered as a 23 if Ford tells them they will not be able to get it built as a 22.

If they try and tell you that in the future tell them you want to see the official Ford documentation as proof.

 

[DJF]

He also just replied that IF my 22 has to be re-ordered as a 23, no guarantee of price protection. I might have to pay the likely price increase.

 

[LAClippers420]

So Ford officially hit it out of the ballpark with the maverick.

 

[Jim D]

They could certainly make it at an idled Ford plant here - but it's all but certain it would be impossible to maintain the lower price points as is. No amount of flag waving or political rhetoric can overrule basic laws of Economics.

Unfortunately, the vast number of politicians, union leaders, populist blowhards on TV or radio, etc do not understand or refuse to believe that they do not possess the power with sheer rhetorical B.S., flag waving and/or wishing thinking to override Economic 101.

You idea requires rephrasing: Is Ford willing to take lower profits or maybe a loss on each Maverick in order to meet demand?

"Buy American" is a nice sentimentality, but it comes with a cost in economic opportunity - what are you willing to give up having the ability to purchase in order to buy a product (or products) made here? The next cell phone upgrade, tickets to a concern or sporting event? What features might you be willing for Ford to drop from a U.S.-made Maverick to still get it at the same price if they moved production to the U.S. ?

There are fewer more ironclad laws than those in economics.

In their statement they did not mention cost....their comment centered on demand.

 

[altomav]

How I’m feeling with my hybrid in the driveway.

I feel the same of my Ecoboost.

 

[tonyinsd]

Worried more about my poor cats not being able to eat. Cat food aisle has been wiped out at the local Publix. Anyone else encountering this?

It's been difficult to complete our orders with the wholesalers so if we're having problems that's not a surprise.

 

[Mike]

I’m told as long as you ordered a maxed out Lariet your odds of getting built are good. They will push these out first.

Sponsored