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Ford Shifting to Build-to-Order Model

abjbrtd

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Ford and all other automakers have been dealing with this for a yr and know it won't change for a couple more.

Ford likes what they see :unsure:

I can't imagine how mad the moaners groaners will be if Ford does not deliver A Maverick at 12:01 am September 22nd 😄
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Roadeyes

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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
Yeah, by all accounts, not a great guy. But that 1930 season! Babe who?
 

Rkbrumbelow

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Yeah, by all accounts, not a great guy. But that 1930 season! Babe who?
I thought it was interesting when they rescored his record breaking season from 190 to 191.

it pays to go back and analyze data.
 

Probity

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Automakers love BTO (build-to-order) model, it's been a supply-chain holy grail for many years (Ford tried it before but had to back off), Ford is betting that post-Covid world really has changed customer behaviors enough to make it viable (i.e. no instant gratification from buying off a dealers lot vs. waiting waiting like Maverick hopeful owners have to do now). They're gonna have to eventually make sure they really do meet a ~8 week +/- from order-to-delivery goal though...

From Farley's 2Q21 earnings transcript:
"Navigating these chip constraints has led us to make important permanent changes in our business model at Ford. We are modernizing our go-to-market strategy. What does that mean? We're placing a greater emphasis on build-to-order sales bank, not just low stocks. We have learned that, yes, operating with fewer vehicles on lots is not only possible but it's better for customers, dealers and Ford. But we're also driving a significant increase in the number of customers configuring and ordering their vehicles online, so we have better visibility to real demand using an order bank. This allows us to lower inventories, simplify our incentives and reduce our order complexity and the industrial systems cost. For our customers, upside is that they more quickly get the precise vehicle they want. Now this isn't theoretical. I hope we get into the Q&A. We're doing it right now as we speak."

Definitely way less incentives spend, they're making book on that (to the tune of $800MM per KBB/Cox Automotive from 2Q2019 compared to 2Q2021)...
Ford Maverick Ford Shifting to Build-to-Order Model incentives.JPG
 

stoptothink

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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
According to many sources, Hack Wilson only had a single child: a son named Robert. He definitely did not have another child with his only wife, Virginia. Considering you are saying you are not certain your grandmother ever met him, not saying he didn't have an illegitimate daughter and you are lying, but this would fall in line with your other irrelevant tall tales that you seem to randomly throw in threads.
 

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A Dodge that drives Fords

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Question is what does FordVideoGuy think of this since he's a dealer of a large Ford dealership. Does he think his dealership could survive on used cars alone.
 

Rkbrumbelow

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Question is what does FordVideoGuy think of this since he's a dealer of a large Ford dealership. Does he think his dealership could survive on used cars alone.
Don’t forget service. Likely the single most profitable department at a dealership.
 

Down

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According to many sources, Hack Wilson only had a single child: a son named Robert. He definitely did not have another child with his only wife, Virginia. Considering you are saying you are not certain your grandmother ever met him, not saying he didn't have an illegitimate daughter and you are lying, but this would fall in line with your other irrelevant tall tales that you seem to randomly throw in threads.
Ohhhhhh, I think someone is gonna get a nasty IM, if my experience is any guide. :LOL: :LOL: :LOL:
 

SuckLemons

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Question is what does FordVideoGuy think of this since he's a dealer of a large Ford dealership. Does he think his dealership could survive on used cars alone.
We would still have to order through dealerships, so I imagine it wouldn’t change much from how they are currently doing things with these hybrid Mavericks and supply chain issues with Bronco and BS. People ordering cars they have not sat in. I know they shipped mannequins to dealers so folks could test them out first, but they typically aren’t in the spec I would order. @fordvideoguy
 

r100gs91

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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.
Those test drive videos by the usual suspects are highly filtered. If for instance Alex on Autos would give a review on the Maverick, and he didn't like the way it drives, or didn't like the Hybrid powertrain, and has several less than perfect reviews in a short period of time. I wonder if he gets first review privilege's in the near future. I take drives by the big 5 reviewers with many grains fo salt. IMO YMMV

It will be quite the day when the driving impressions are posted.
 
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casanewt

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Ford will probably land somewhere in the middle where they let the dealerships decide how much stock they want on the lot and then let the dealers eat any discounts they need to offer to blow out their extra inventory. Once a vehicle is in full production and demand can be met, I would think they could really shorten the wait time for a custom order. We cannot compare that scenario to new and/or high-demand models where the demand is above the production ability(Maverick). We also cannot compare things during our crazy pandemic supply chain struggles that are still affecting production in almost every sector.
 

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Some interesting representative investor viewpoints on Ford's BTO shift:
Ford Maverick Ford Shifting to Build-to-Order Model bot1.JPG


Ford Maverick Ford Shifting to Build-to-Order Model bto2.JPG


Ford Maverick Ford Shifting to Build-to-Order Model bto3.JPG
 

JASmith

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I wish we could bypass the dealer model entirely like Truecar and the like, and just go to an online sales type arrangement. Would massively reduce overhead costs and getting financing is just a couple clicks online that anyone with a computer can do. Get it delivered like an amazon package to my driveway!

Unfortunately there is a dealers union in the US that lobby the local governments and ensure that manufacturers can't sell directly. Tesla has been fighting this.
 

dceggert

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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 :unsure:

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.
A pre-launch pre-order is significantly different from ordering a vehicle already in production. The Bronco, Lightening, and now Maverick are all pre-orders where the customer gets to participate daily in the normal day-to-day issues during a major product launch.

In other words, if you would have waited until April 2022 your order would only have been held up by the dealer allocation window allowing your vehicle to begin production.
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