Jim Farley: We know who are the 10% of dealers charging ADM markup and their future allocations will be impacted

[Kentucky]

Per Jim Farley, Ford Motor Company CEO in the 4th Quarter Earnings Call:

“We have about 10% of our dealers last year in the supply-constrained environment that, were charging above MSRP to our best of our knowledge. We have very good knowledge of who they are. And their future allocation of product will be directly impacted because of that policy. And we've seen really quick action by our team.”

Sounds like Ford is going to reduce those dealers allocations who chsrge over MSRO.

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[thevol]

Ford wants a piece of that ADM pie

 

[Naranjita]

Ford wants a piece of that ADM pie

This is likely the truth here. But glad to see something.

 

[DavesMav]

Anything to please the shareholders..

-Dave

 

[Johnkn]

If Farley truely believes that only 10% of the dealers charge ADM he is greatly out of touch with reality...


.

 

[Churaumi]

I don't see how that helps customers much. It sounds good but only makes it harder for consumers to get their hands on vehicles. Just do away with allocations, bribe...er....donate to politicians to get dealership laws changed, and just sell me a truck already. If dealers mess with customers, there's got to be better ways to punish them.

 

[Hoagus]

If Farley truely believes that only 10% of the dealers charge ADM he is greatly out of touch with reality...


.

You have better numbers? Please share.

 

[Johnkn]

You have better numbers? Please share.

Although I have a truck ordered I’m trying to accelerate the purchase and have called or visited 7 dealerships. ALL have an ADM up to $10k on a $28k MSRP.... during that negotiation could that $10k move down?, perhaps, but it’s not going to zero
.

 

[goshornt]

Is he talking about customer orders or dealer orders? I can believe it if he is saying 10% markup on customer orders. Which is obviously BS.

But like others are saying, much, much greater than that on dealer stock orders.

 

[Maverstang]

If true, then each of us should do our part by sending a copy of any received ADM quote directly to Mark Levine at Ford.

Then we’ll see if this Ford position is actionable or just window dressing…

 

[The Weatherman]

Not going to do anything for customer satisfaction, if Ford doesn’t make it known far and wide who has lost their allocations. Otherwise an uninformed consumer is going to be waiting a long time for a vehicle not knowing why and blaming Ford.

So Ford how about give us a place to go and see what dealers have how many allocations by vehicle type.

Or better yet, build the damn vehicles in order date sequence and let them land where they may.

 

[Mark Rash]

Is he talking about customer orders or dealer orders? I can believe it if he is saying 10% markup on customer orders. Which is obviously BS.

But like others are saying, much, much greater than that on dealer stock orders.

I took it that he's talking about custom orders, not stock orders. And probably not even custom orders where the customer backed out. Just my take though.

 

[Redneck Garage]

I took it that he's talking about custom orders, not stock orders. And probably not even custom orders where the customer backed out. Just my take though.

Well ..... as MOST on this forum have ordered a Maverick and almost ALL have paid MSRP on customer orders that's pretty reflective on what most dealers do. Id say the problem he is talking about is markups on stock vehicles. Been happening for a few years with the Bronco.

 

[LowLeadAV]

What if we are needing one of those allocations…..

 

[jc888888888]

Well ..... as MOST on this forum have ordered a Maverick and almost ALL have paid MSRP on customer orders that's pretty reflective on what most dealers do. Id say the problem he is talking about is markups on stock vehicles. Been happening for a few years with the Bronco.

I AGREE

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