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Ford drops 2023 Maverick COVP name match policy threshold to 60% on retail orders!

Aherpa

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Just got this interesting tidbit from @fordvideoguy weekly live stream. Ford has dropped the COVP name match policy to 60% on 2023 retail orders and has no official sanctions in place for going below it. They said they will just "monitor" it.

In other words, dealers are not at real risk of losing allocations when customers who ordered walk away. As such, this only means that many dealers will actually WANT customers who ordered to refuse the orders upon delivery so they can add massive ADM and make big $$$$.

It's also concerning from the standpoint of dealers who add "surprise" markups when retail orders arrive. Without any penalty for not having a name match, what's to stop dealers from just tacking $3,000 or $5,000 onto every Maverick order that shows up and telling customers, "Hey, if you don't like it, we'll sell it off the lot for $8,000 or $10,000 over sticker."

My personal opinion is this is a pretty lousy move by @Ford Motor Company and will benefit dealers a lot and do NOTHING to benefit consumers!
If true, it's interesting because Ford's CEO said they were going to crack down on this and basically said "we know who you are". But apparently, 'crack down' must mean loosen the standard and look the other way.

Heck, maybe the standard before was up to 60% of dealer orders could be 'fraudulent' and now they've tightened it to only 40% and they actually have 'cracked down'. . . .:)
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Whomever is lobbying for the dealerships must be pretty good at their job. Priority for 22 rollover orders was delegated to the dealerships instead of Ford and now they are reducing the name match policy threshold to 60%.
 
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Whomever is lobbying for the dealerships must be pretty good at their job. Priority for 22 rollover orders was delegated to the dealerships instead of Ford and now they are reducing the name match policy threshold to 60%.
Well, considering that dealers are technically FoMoCo's only customer, yes!
 

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Just got this interesting tidbit from @fordvideoguy weekly live stream. Ford has dropped the COVP name match policy to 60% on 2023 retail orders and has no official sanctions in place for going below it. They said they will just "monitor" it.

In other words, dealers are not at real risk of losing allocations when customers who ordered walk away. As such, this only means that many dealers will actually WANT customers who ordered to refuse the orders upon delivery so they can add massive ADM and make big $$$$.

It's also concerning from the standpoint of dealers who add "surprise" markups when retail orders arrive. Without any penalty for not having a name match, what's to stop dealers from just tacking $3,000 or $5,000 onto every Maverick order that shows up and telling customers, "Hey, if you don't like it, we'll sell it off the lot for $8,000 or $10,000 over sticker."

My personal opinion is this is a pretty lousy move by @Ford Motor Company and will benefit dealers a lot and do NOTHING to benefit consumers!
Another detail on this change, is that FMC, while lowering the COVP match policy to 60%, also took away the ability for the dealer to see where they are at match-wise. Previously, a dealer could see "oh hey, we are at 96% match, we've got some room to play with. Skip calling the next three customers and sell their trucks on the lot for +$5,000." Now, sure they can try to keep track of that on their own, but that is a bit cumbersome and not worth the effort, but they no longer have the ability to just quickly look and see how much rope they have.
 

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I really think the COVP process made sense. When there is limited supply one vehicle per person should be the rule. The Ford system should be able to identify when someone is putting in multiple orders at different dealers and deny repeat offenders. No one should be ordering multiples to flip or just cancel. That just slows down the process for everyone.
 

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Well, considering that dealers are technically FoMoCo's only customer, yes!
Exactly - this fact gets lost in all of these "manufacturers need to do more for the customer" discussions. Ford, and other manufacturers selling through the dealership model, make their money when they sell to the dealers and not when a unit is sold to a retail customer. That's the case with any retail business model that's not manufacturer direct, not just cars. Retail customers can whine all they want, but Ford is beholden to their dealer network, at least for the foreseeable future.
 

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I really think the COVP process made sense. When there is limited supply one vehicle per person should be the rule.
The COVP process has nothing to do with limiting how many vehicles one customer can order.
 

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If true, it's interesting because Ford's CEO said they were going to crack down on this and basically said "we know who you are". But apparently, 'crack down' must mean loosen the standard and look the other way.

Heck, maybe the standard before was up to 60% of dealer orders could be 'fraudulent' and now they've tightened it to only 40% and they actually have 'cracked down'. . . .:)
Farley is a liar. He says a lot of things and promises all kinds of things and the reality of it is none of it happens and he uses supply chain as an excuse for it all but that only changes build times and deliveries not dealer mischief or ford manufacturing not folloeing the build guidelines promoted..conclusion is he's a used car salesman nothing more...
 

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I'm pretty sure they legally can't. There is a federal law that says if a manufacturer has a dealership in a state then that manufacturer is required to sell through the dealer. It's why Tesla has zero dealerships. They have "galleries" and can loophole themselves past this law. It's also why Ford is creating a completely separate business for their electric vehicles. In coming years they will be able to argue that no Ford-Electric dealerships exist in any state, only galleries, and finally be free from this law to sell direct to consumers.
nailed it. also, there's a second reason for Ford to have a separate business for electric.

it's a hedge against the EV market turning against Ford, or just cratering entirely. if the electric business goes bankrupt, it can't take down the legacy business.

I bought my wife a Bronco this year. I was offered surveys and there was quite a lot of questions on there about EVs. I'm not interested in a full EV at all. Hybrid makes much more sense... but I own an ecoboost Maverick, because it fits my needs & wants.
 

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Dual-signed buyer's order should help protect against ADM. Hoping so for mine at least, plus small town dealer needing to keep good reputation. People talk around here.
 

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Maybe Ford should just raise the base price to $35,000. They would make the same profit off of a smaller number of sales.
You right, supply and demand. They may be trying to gain new customers and sacrificing max profit, for now.
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