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

[icegradner]

I'm not sure how you came to that conclusion. I think you may be confused about who is competing with whom. Manufacturers compete with manufacturers, not with dealers.

Here's just one small part of the Federal Trade Commission's guidance on Manufacturer-imposed Requiments:

The law draws a big distinction between what manufacturers do on their own for their own business reasons and what they do in combination with other manufacturers.

If you read the whole guidance -- which is really just a thumbnail sketch -- you'll see that this area of law is very complex. Glibly saying the dealers would "easily win" a lawsuit is misleading at best.

You do realize not everyone on this forum is in the US. US laws don't apply, outside the US.

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[NoMav4Me]

The Federal Trade Commission on MSRP -- The key word is "suggested." A dealer is free to set the retail price of the products it sells. A dealer can set the price at the MSRP or at a different price, as long as the dealer comes to that decision on its own. However, the manufacturer can decide not to use distributors that do not adhere to its MSRP.

Our orders are with the Dealer, not Ford Motor Company. I read the "Ford Ordering" document and the legal staff has washed FM Co. from ANY liability. The dealer can charge LESS than MSRP or MORE. If Ford was serious about enforcing MSRP, dealers wouldn't be practicing extremes of either. Of coarse, then that would be "Price Fixing" in accordance with the FTC. There's about 3,500 dealers in the US and Canada and I'll bet that number won't change due to dealer markups.

I read salesman are saying that prior to the pandemic they never got MSRP or more. Mr. Farley should revise his statement to say . . . " Only 10% are NOT charging above MSRP".

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.

ha what a joke. I just came from the local dealer, Cutter Ford, and was told flat out there’s a $5k ADM AND a $1,995 Protection plan added to all new Mavericks on Top of the $1,495 Destination charge! wth!?!! I walked away SMH. Ford can keep every one of them.

Heck I tried to pre order at Orchid Island Ford Hilo when first announced and was told first no ADM but then later $2,200 mark on So I cancelled. now just read somebody else got one at MSRP thru some internet sales manager?

this sucks. I think I’ll just go to a different brand already.

 

[DryHeat]

You do realize not everyone on this forum is in the US. US laws don't apply, outside the US.

So you're saying you were only talking about Canadian car dealers filing a lawsuit in Canada? And that lawsuit that would be an easy win, right?

Maybe that's true, but I have a few questions.

(1) Is Canadian law significantly different on this issue from US law? How is it different? (I'm assuming you know off the top of your head because you already know that it would be an easy win.)

(2) Haven't almost all of Canada's automobile dealers agreed to mediate these sorts of disputes with manufacturers though the National Automobile Dealer Arbitration Program? Doesn't that prevent them from filing a lawsuit in the first place?

(3) If you're talking about using the minimum advertised price provisions of the Competition Act, don't they only kick in if the manufacturer's actions influenced the reseller's price upward (not downward, as here)?

(BTW, I live just across the Georgia Strait from you several months a year. I'll be up there again in a week or so. If you have your Maverick by then hop on the ferry to Nanaimo and bring it over so I can drool over it. Mine's in a holding lot in Hermosillo.)

 

[Naranjita]

If you have your Maverick by then hop on the ferry to Nanaimo and bring it over so I can drool over it.

Emmmmm. Nanaimo Bars. *drool*

 

[icegradner]

So you're saying you were only talking about Canadian car dealers filing a lawsuit in Canada? And that lawsuit that would be an easy win, right?

Maybe that's true, but I have a few questions.

(1) Is Canadian law significantly different on this issue from US law? How is it different? (I'm assuming you know off the top of your head because you already know that it would be an easy win.)

(2) Haven't almost all of Canada's automobile dealers agreed to mediate these sorts of disputes with manufacturers though the National Automobile Dealer Arbitration Program? Doesn't that prevent them from filing a lawsuit in the first place?

(3) If you're talking about using the minimum advertised price provisions of the Competition Act, don't they only kick in if the manufacturer's actions influenced the reseller's price upward (not downward, as here)?

(BTW, I live just across the Georgia Strait from you several months a year. I'll be up there again in a week or so. If you have your Maverick by then hop on the ferry to Nanaimo and bring it over so I can drool over it. Mine's in a holding lot in Hermosillo.)

I believe the anti-competative nature of it would be Ford favoring some dealers over others, for charging over MSPR. I doubt there are any laws on the books for selling things over MSRP. Given that just about every dealer out there is selling vehicles well over MSPR, Ford won't have any dealers left if they follow through. Also there was some suggestion by a former dealer owner on youtube when this came up for the F150 Lightning, that dealers would take Ford to court and likely win if they actually started withdrawing allocations.

(No chance of getting my Maverick anytime soon, it was an early November Hybrid order, might get it this year!)

 

[2022EOW]

All the people on here who swoon over Timmy the Ford Video Guy needs to realize that he is in this group of greedy shysters who add admin to their stock. What does Timmy have to say about this when the big boss frowns on it. I hope Timmy's allocation gets cut.

 

[Naranjita]

All the people on here who swoon over Timmy the Ford Video Guy ...

Isn't he dreamy???

 

[DryHeat]

I believe the anti-competative nature of it would be Ford favoring some dealers over others, for charging over MSPR. I doubt there are any laws on the books for selling things over MSRP. Given that just about every dealer out there is selling vehicles well over MSPR, Ford won't have any dealers left if they follow through. Also there was some suggestion by a former dealer owner on youtube when this came up for the F150 Lightning, that dealers would take Ford to court and likely win if they actually started withdrawing allocations.

(No chance of getting my Maverick anytime soon, it was an early November Hybrid order, might get it this year!)

Ok, so maybe not such a great lawsuit for the dealers...
... but also maybe not such a great business move for Ford.

That makes sense to me.

And I'm thinking my June hybrid (now sitting in the "Can I get some chips?" lot in Hermosillo) may turn into a June+June hybrid -- June order, June delivery.

 

[DryHeat]

Emmmmm. Nanaimo Bars. *drool*

I'm biased, but I think the best in town are found (surprisingly) at the Thrifty Foods bakery counter down by the boat basin. Surprisingly cheap, too...

 

[Chicago Mike]

Hi guys, my dealer added the extended warranty and told me I can cancel multiple times During the finance process. after I agreed and signed i did some research and decided it was bunk. I repeatedly wrote and said I wanted to cancel, even wrote the auto groups GM multiple times. Not one single reply to over a dozen emails. So I had read on this forum something similar and how thy googled a few names and sent off an email and received a resolution.
well I did the same and within 24 hours I had a call and my $1,400 extended warranty was being refunded. I gotta say locally they treated me like crap after I signed. But elevating it resolved it.

Long story short, if they take advantage of you, you have options. I also reported them for their BS ADM that they are asking. I get the inventory constraints, but come on…

thanks MTC you got my $1,400 bucks back.

 

[Hoagus]

Come to New Jersey…. I’ve check most NJ dealers…. They all, each one charge between $2500 to $10000 mark up on any Maverick on their lot for sale.

Those aren’t custom orders if they’re on the lot for sale.

 

[Kvolkan]

As of last week, Autonation dealer are not charging ADM for the Maverick, just MSRP. Every other dealer around me is charging 5-8k ADM. I found an Autonation Ford dealer about an hour away with no markup. They told me they just got a Maverick in. Since it had the trim and options I liked I just went over and bought it. They did try to slip in about $750 of overpriced accessories - door guard and window tint. But when I asked them to take those off they did. I was told the Maverick’s sell the same day they come in.

 

[Vols44]

I believe the anti-competative nature of it would be Ford favoring some dealers over others, for charging over MSPR. I doubt there are any laws on the books for selling things over MSRP. Given that just about every dealer out there is selling vehicles well over MSPR, Ford won't have any dealers left if they follow through. Also there was some suggestion by a former dealer owner on youtube when this came up for the F150 Lightning, that dealers would take Ford to court and likely win if they actually started withdrawing allocations.

(No chance of getting my Maverick anytime soon, it was an early November Hybrid order, might get it this year!)

I would like to know what judge would take a case where a dealership is complaining that it's manufacturer is going to change the rules (set by the manufacturer) on allocations.

To quote V.P. of sales Andrew Frick, "Dealers shall avoid in every way any 'bait,' deceptive, misleading, confusing or illegal advertising or business practices," and said any outlet found in violation may lose their entire allocation of trucks for the year.".

 

[Captain]

Those aren’t custom orders if they’re on the lot for sale.

If Ford is not making stock orders, then those dealer lot vehicles are vehicles ordered and abandoned.

 

[Jay144]

Bob Davidson Ford in Baltimore, MD, is charging $10,000 over MSRP for a Maverick Lariat.
What a bunch of bullshit!!
I told Heather to go fuck herself.

ePrice Quote *: $46,410

N 2022 Ford Maverick MAVERICK LAR AW	Dealer Price: $46,410.00​
Vin: 3FTTW8F93NRA02171	StockNumber: 70040
Exterior: Area 51	Interior: Desert Brown
Mileage: 679
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