Straight from the horse's mouth- Ford CEO Jim Farley

DryHeat

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I'm not sure I understand what the Maverick-related issue is here.

Is there some reason to believe that Ford maximizing the production of its most profitable vehicles will negatively impact the production of Mavericks?

If it caused them to skew the Hermosillo production line to produce more Bronco Sports and fewer Mavericks, well, that would make a difference. But is there any indication that is happening?

 

HotJombalya

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You have to own it for a certain amount of time, 60 days IIRC but maybe it's 6 months. You can generate one PIN a year to get the discounts and I think you can use them for family members. It's a good deal, look into it. You have to jump through some hoops but it's a really nice perk.


ETA start here, you may have to register.

https://s23.q4cdn.com/799033206/files/doc_downloads/Ford-Shareholder-Application-11-5-20.pdf
and thanks for the ETA, Decayed. Much appreciated
 

tonyinsd

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I think this is a pretty short sighted statement, Ford's obligation is to the stock holders since they are a public company, not necessarily the customer. I'm sure if you owned a company you would do whatever is better for the longevity and profitability of your company primary to trying to keep EVERY customer happy. Ford is going to figure out how to be most profitable while trying to keep as many customers happy as possible but what do you think matters more to them? Keeping the customer who order a 70k F-150 happy or a customer who ordered a 26k Maverick happy?
Too many people think that "the customer is always right" is a good way to operate your business. As someone who has run a business for seven years through a pandemic, I'm here to tell you that's garbage. Of course we're willing to work to accommodate customers with reasonable requests but if you want us to do something that's completely different than how we do things, you can walk right back out that door that you walked in.

Ford has chosen a model to allocate the resources they have. Now, if you don't like that model, well, you're free to take your money and go spend it with an auto manufacturer that does things the way you like.

That's how it works. Complaining and saying "they should change their model" does nothing.

If it caused them to skew the Hermosillo production line to produce more Bronco Sports and fewer Mavericks, well, that would make a difference. But is there any indication that is happening?
No. There's a lot of conspiracy theory level thinking going on from people who think that a hundred billion dollar company is spending the time of its employees trying to shaft them. That just ain't so.

They're building them as they can given the resource constraints that are real. Yeah, it sucks to wait. I had to pay for another smog test and another year's registration on the piece of crap 32 year old truck the Maverick will replace. That's hundreds of dollars. I'm not happy about it, but what's the alternative? Nothing? Well, then, I have no choice but to deal.

And I just got a notification saying that my build date has been moved to April 4. Another month of waiting, which sucks. But what can I do? Nothing, so I'm not going to let it upset me.
 

FloodingdowninTX

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Because like me you're a customer first and foremost and just like a business should stick up for its own interests over that of the customer you should be sticking up for your interests, that's just common sense. Most customers don't like being price gouged and waiting for months for commodities. Besides, its pretty clear this market is not normal and isn't operating on laissez faire free-market pure capitalism and there's plenty of crony capitalism market interference going on with net worth of the billionaire politically connected class skyrocketing in the last couple of years (now at $5.5 Trillion increase since March 2020 per Forbes).
Agree. Claude Raines should be "shocked, shocked" at the massive corruption in our global corporate/governmental cabals.
 

Turtle

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Ford is reaping the benefits of higher markup at the dealer if the buyer is financing thru Ford credit.
Yes, they are making a fortune @ zero for 36 and .9 for 48.
 


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I'm not sure I understand what the Maverick-related issue is here.
The Context of the article

Interest in the Maverick, with an MSRP of $19,995, comes as new vehicle prices are at an all-time high, up about 12% from a year ago, according to Consumer Price Index data. The chip shortage has greatly contributed to those higher prices, and Farley predicts that challenge will plague the industry through 2023.

"We’re still in the teeth of it," Farley said. "I think this year will be very challenging for semiconductor availability. We’re maximizing production in our most profitable vehicles. That’s helping offset the loss in production, but it’s a very persistent problem."
 

Turtle

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The Context of the article

Interest in the Maverick, with an MSRP of $19,995, comes as new vehicle prices are at an all-time high, up about 12% from a year ago, according to Consumer Price Index data. The chip shortage has greatly contributed to those higher prices, and Farley predicts that challenge will plague the industry through 2023.

"We’re still in the teeth of it," Farley said. "I think this year will be very challenging for semiconductor availability. We’re maximizing production in our most profitable vehicles. That’s helping offset the loss in production, but it’s a very persistent problem."
Yes, they will build mor F150 - where they make more money and have strong competition and less Maverick - where they make less money and limited competition. However, the Mexico plant will produce every Maverick and Bronco Sport that they have parts to build. Stripped Maverick’s have a better chance than a Lariat Lux - it’s just a matter of chips. Notified this morning that my Lariat Lux Hybrid scheduled for March is now April as did manny others on MTC.
 

hcforde

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Kind of says it all folks!

"We’re still in the teeth of it," Farley said. "I think this year will be very challenging for semiconductor availability. We’re maximizing production in our most profitable vehicles. That’s helping offset the loss in production, but it’s a very persistent problem."

Must read:


https://www.foxbusiness.com/politics/ford-ceo-on-white-house-mtg-ev-tax-credits

Actually this is nothing new. It only becomes news when people begin to notice it. This is business school 101 common sense type information, part of the economic man theory. We as individuals do the same thing on a smaller scale. That is why the Maverick is so popular.
 

DryHeat

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The Context of the article

Interest in the Maverick, with an MSRP of $19,995, comes as new vehicle prices are at an all-time high, up about 12% from a year ago, according to Consumer Price Index data. The chip shortage has greatly contributed to those higher prices, and Farley predicts that challenge will plague the industry through 2023.

"We’re still in the teeth of it," Farley said. "I think this year will be very challenging for semiconductor availability. We’re maximizing production in our most profitable vehicles. That’s helping offset the loss in production, but it’s a very persistent problem."
Ok, I get it. You're saying that:
  1. Ford is diverting chips from Mavericks to other lines, and
  2. the shortage of chips is causing the slow pace of Maverick production.
Is that the theory?
 

Decayed

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The Context of the article

Interest in the Maverick, with an MSRP of $19,995, comes as new vehicle prices are at an all-time high, up about 12% from a year ago, according to Consumer Price Index data. The chip shortage has greatly contributed to those higher prices, and Farley predicts that challenge will plague the industry through 2023.

"We’re still in the teeth of it," Farley said. "I think this year will be very challenging for semiconductor availability. We’re maximizing production in our most profitable vehicles. That’s helping offset the loss in production, but it’s a very persistent problem."
I read that as "we will still build mavericks just not that many", it explains why they limited hybrids to 40% as well. They don't want to spend too many resources on less profitable vehicles. They will produce enough to meet CAFE standards.
 

hcforde

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Yes, they will build mor F150 - where they make more money and have strong competition and less Maverick - where they make less money and limited competition. However, the Mexico plant will produce every Maverick and Bronco Sport that they have parts to build. Stripped Maverick’s have a better chance than a Lariat Lux - it’s just a matter of chips. Notified this morning that my Lariat Lux Hybrid scheduled for March is now April as did manny others on MTC.
Not necessarily, If they have the parts for a Lariat Lux it will be built before a stripped XL because that chip will bring in more profit on the Lariat Lux. Where the highest constrained part goes makes the difference in profitability. With different parts being constrained, the margin profitability of each part in each build comes into the equation. In general the more accessories on a vehicle the higher the profit margin. Those vehicle get looked at first to determine the capability of a full build.

You also have to look at other vehicles being built in the Ford lineup. That also falls into the equation.
 

dale

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Too many people think that "the customer is always right" is a good way to operate your business. As someone who has run a business for seven years through a pandemic, I'm here to tell you that's garbage. Of course we're willing to work to accommodate customers with reasonable requests but if you want us to do something that's completely different than how we do things, you can walk right back out that door that you walked in.

Ford has chosen a model to allocate the resources they have. Now, if you don't like that model, well, you're free to take your money and go spend it with an auto manufacturer that does things the way you like.

That's how it works. Complaining and saying "they should change their model" does nothing.



No. There's a lot of conspiracy theory level thinking going on from people who think that a hundred billion dollar company is spending the time of its employees trying to shaft them. That just ain't so.

They're building them as they can given the resource constraints that are real. Yeah, it sucks to wait. I had to pay for another smog test and another year's registration on the piece of crap 32 year old truck the Maverick will replace. That's hundreds of dollars. I'm not happy about it, but what's the alternative? Nothing? Well, then, I have no choice but to deal.

And I just got a notification saying that my build date has been moved to April 4. Another month of waiting, which sucks. But what can I do? Nothing, so I'm not going to let it upset me.
 

dale

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I wish that I had a build date in April. You're lucky I've been waiting since June the 10th and nothing yet.
 

AznMav

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Can we stop using the word gouging? ADM is not gouging. Contrary to popular belief we will not die if we do not get new trucks. Gouging is someone charging $50 for a 12 oz bottle of water after a natural disaster because they are the only supplier in town. You will die without water but you won't die if you don't get your xlt lux with 4k tow package. You can buy another truck to hold you over or get a SC if you're into that kind of thing. We all would love our Mavericks yesterday. Being an importer and a customer like everyone here I understand both sides. I've never seen the supply chain this messed up. I've had to make decisions on what to import and what to cancel. Most customers have been understanding but some are unreasonable and accuse us of gouging when the shipping alone costs more than the previous sales price. It sucks. Nobody is happy. The sooner we go UK style and let everyone just do whatever and get back to normal, the faster this 💩 show will be over. Don't blame Ford they arent the ones forcing ridiculous policies on the entire supply chain.

 

 
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