Ford Shifting to Build-to-Order Model

[pointillistic]

Market Chatter: Ford Reportedly Shifting to Build-to-Order Model to Cut Inventory Costs
02:39 PM EDT, 08/17/2021 (MT Newswires) -- US carmaker Ford (F) is asking more buyers to custom-order online and wait, rather than choose from the lot available at the dealership, The Wall Street Journal reported Tuesday.
The move would help reduce inventory costs and allow it to produce only those models that will be delivered to customers, according to the report.
The new approach, however, reportedly carries risks, including a possible market share loss.

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[pxpaulx]

Agreed, they make plenty on used car sales, though I suspect that is also the case for the higher volume/cost trucks being sold as well.

 

[Old Ranchero]

yeah, it sure seemed they were transitioning that direction. I think there are more risks than just a market share loss. Judging by the comments here and Bronco forums, the endless speculation of what's happening after an order is placed and increasing doubts + anxiety (for some people anyways) during the undetermined waiting time before delivery is bad publicity. Stuff travels at lightning speed nowadays on the inter-webs and you never get a 2nd chance to make a good 1st impression

They'll need to drastically improve their PR efforts and media presence/outreach by being more proactive to head off any hints of customer dis-satisfaction over the process or it will blow up on them, IMO.

 

[Old Ranchero]

Not all of us prefer remote Amazon type transactions for everything we buy. Believe it or not some of us were buying cars before there was internet and cell phones! There is absolutely value added by physical dealerships when it comes to service, warranty/recall issues, obtaining parts, loaner cars, and having selection to choose from, test drives, to name a few things. I do understand younger generations don't prefer person-to-person interactions in their daily routines as much as previous generations, but many of us still do. Good to have choices!

 

[pointillistic]

Not all of us prefer remote Amazon type transactions for everything we buy. Believe it or not some of us were buying cars before there was internet and cell phones! There is absolutely value added by physical dealerships when it comes to service, warranty/recall issues, obtaining parts, loaner cars, and having selection to choose from, test drives, to name a few things. I do understand younger generations don't prefer person-to-person interactions in their daily routines as much as previous generations, but many of us still do. Good to have choices!

If I told you that a dealer adds $1.5K-$2K to the cost of your car, you would still go to a dealership?

 

[Deleted member 1370]

I agree things are definitely moving that direction like it or not. But they need to improve the process and transparency of the process far more to make it a successful venture. I get the concept of it and how people these days buy cars/trucks vs 20 years ago in this market and the future market but it needs to be ironed out as well.

 

[MarkG]

I don't think it is reasonable to expect the majority of the new car buyers to have to wait 6 months to take possession of a new vehicle purchase.

At this time I have the flexibility to wait for my truck to be built but if something were to happen, stolen, totaled, whatever, I think I would be forced into a used vehicle purchase even if I have a check in hand from my insurance company.

 

[adawalli]

Not all of us prefer remote Amazon type

Oh yeah, I remember stores!

 

[Rkbrumbelow]

I don't think it is reasonable to expect the majority of the new car buyers to have to wait 6 months to take possession of a new vehicle purchase.

At this time I have the flexibility to wait for my truck to be built but if something were to happen, stolen, totaled, whatever, I think I would be forced into a used vehicle purchase even if I have a check in hand from my insurance company.

Umm you do realize that we are in a forum talking about a vehicle that is not even slated for release for another month right?

As for insurance issues and such, I see a time when insurance will cover a short term fleece, err lease delivered to your door while you wait the likely 4-6 weeks for a BTO, in production vehicle

 

[Old Ranchero]

If I told you that a dealer adds $1.5K-$2K to the cost of your car, you would still go to a dealership?

yes, and I would tell you that number is inflated on new car sales. Profit margins are pretty slim on new cars unless you let them add markups and sell u unneeded stuff like Teflon paint treatment. Used cars are the profit makers. Have you ever worked in car sales or known anyone that did to tell you all the tricks? That has helped shape my thinking and buying experience expectations.

Here's the thing: time is money. my free time is valuable to me. We have a lot of folks here ordering cars and thinking they will walk away if they don't like it when it arrives. Seems like a huge waste of time and effort to me. I need to see and drive a car I'm thinking to buy before I buy it. If I don't like it then- walk away with little wasted time or effort. I also don't mind the haggling over OTD price when there is so much info out there with invoice, etc. to review. I used to really like Edmunds True Value on market pricing based on actual sales. I always come in with financing arranged and/or my checkbook and don't budge on what I will pay. Different strokes for different generations I guess.

BTW: my friendly dealer rep showed me there is maybe $700.00 difference between Invoice and MSRP on Maverick and my build comes in well below my budget estimate so it's all good going the route I always have and no reason to change for me.

 

[Down]

Not all of us prefer remote Amazon type transactions for everything we buy. Believe it or not some of us were buying cars before there was internet and cell phones! There is absolutely value added by physical dealerships when it comes to service, warranty/recall issues, obtaining parts, loaner cars, and having selection to choose from, test drives, to name a few things. I do understand younger generations don't prefer person-to-person interactions in their daily routines as much as previous generations, but many of us still do. Good to have choices!

For some of us "not so young" generations, it's kind of a hybrid.

- I FAR prefer Amazon over having to go out and deal with the lagoon people that frequent Wal-Mart/similar stores if I'm buying a new blade for my razor.
- If I'm buying furniture? I absolutely REFUSE to buy anyway other than in person. The salesperson doesn't really help me but the ability to "touch and feel" what I'm purchasing does.
- I prefer to buy meat from a local butcher instead of online or at a grocery store. Here, the "personal touch" of the butcher goes a long way, in addition to my cranky old thoughts about how our food system needs to be decentralized, but that is a topic for another day.

So, 2/3 of the time, I prefer a brick and mortar store presence.

BUT

If my butcher did the equivalent of making me buy a WORTHLESS LoJack system and straight up lied to my face about how much it'd drop off of my insurance (sales manager actually called my insurance agent a liar after I called him to ask about insurance savings and he laughed and said no), all while playing bullshit psychological warfare games and fucking up my entire afternoon so they can squeeze me for another $500?
I wouldn't shed a tear about losing his service, because he wouldn't be providing me a quality service. Good riddance, I'd say.

Furthermore, maybe what it would take is Ford moving to this build to order model and all of a sudden, you might see other dealerships start running things in a less sleazy manner. If they do? Then we all win.

 

[Hack]

I don't think it is reasonable to expect the majority of the new car buyers to have to wait 6 months to take possession of a new vehicle purchase.

At this time I have the flexibility to wait for my truck to be built but if something were to happen, stolen, totaled, whatever, I think I would be forced into a used vehicle purchase even if I have a check in hand from my insurance company.

I can see this question from both ways. Yes, I'm old. But it's hard for me to make a $25,000 commitment for a car I haven't seen in the flesh. (I've sent $10 t-shirts back to Amazon 'cos the medium was really a small.) So, what does it REALLY look like? What's it like to get in and out of? What's it feel like in the driver's seat? (I loved my early 90s Tacoma. My 95 Ranger? Not so much.) What's the hybrid engine feel like? (I've never had one.)

So I will order a Maverick and wait for it. Because I've wanted a good, small pickup since I sold my Tacoma and 40 MPG in the city is impressive. And at $25k, which is the current price for a 5-7 year old F-150 or Tacoma, which are still too big, it looks like a bargain.

It's a new world and I'm trying to roll with the times.

 

[pointillistic]

I can see this question from both ways. Yes, I'm old. But it's hard for me to make a $25,000 commitment for a car I haven't seen in the flesh. (I've sent $10 t-shirts back to Amazon 'cos the medium was really a small.) So, what does it REALLY look like? What's it like to get in and out of? What's it feel like in the driver's seat? (I loved my early 90s Tacoma. My 95 Ranger? Not so much.) What's the hybrid engine feel like? (I've never had one.)

So I will order a Maverick and wait for it. Because I've wanted a good, small pickup since I sold my Tacoma and 40 MPG in the city is impressive. And at $25k, which is the current price for a 5-7 year old F-150 or Tacoma, which are still too big, it looks like a bargain.

It's a new world and I'm trying to roll with the times.

You have to take into account that Maverick is new car. With a normal cycle there will be models to drive and look at at the dealership or some other location. I am waiting for drive reports.

 

[Rkbrumbelow]

I can see this question from both ways. Yes, I'm old. But it's hard for me to make a $25,000 commitment for a car I haven't seen in the flesh. (I've sent $10 t-shirts back to Amazon 'cos the medium was really a small.) So, what does it REALLY look like? What's it like to get in and out of? What's it feel like in the driver's seat? (I loved my early 90s Tacoma. My 95 Ranger? Not so much.) What's the hybrid engine feel like? (I've never had one.)

So I will order a Maverick and wait for it. Because I've wanted a good, small pickup since I sold my Tacoma and 40 MPG in the city is impressive. And at $25k, which is the current price for a 5-7 year old F-150 or Tacoma, which are still too big, it looks like a bargain.

It's a new world and I'm trying to roll with the times.

My great grandfather went by the name Hack, he was Hack Wilson. No one but baseball fans remember him these days. Hell of a player, but not so great a father by my GMs recollection (don’t know if she ever met him, baseball was more important than his pregnant wife)

nothing related other than the name lol

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