Updated info on Ford direct-to-customer sales model plans

[Old Ranchero]

Admins, feel free to delete or merge if this was already posted and I missed it-

https://www.msn.com/en-us/autos/new...A15chOg?cvid=7830097679814ce8838006acbfdc51da

The automaker is also changing how it sells cars in Europe, moving to direct-sales models where it bills customers directly and pays dealers a small fixed fee. Ford believes that the single price model simplifies the sales process and the retail situation since fewer dealers will be needed to service the same number of customers.

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[commadorebob]

In Europe. It'll be interesting to see if states and federal laws will allow this.

 

[CTYankee]

West Virginia's and North Carolina's revised laws allow automakers to take customer reservations for vehicles but require automakers to send those reservations to a dealership. The bills also prohibit automakers from interfering with price negotiations, trade-in values and vehicle protection product sales.

Source: New Franchise Laws May Change How Auto Dealerships Operate - Dealer Ops - Auto Dealer Today (autodealertodaymagazine.com)

These are the two states updating dealer franchise laws and it's pretty clear they aren't going to change them all that much.

 

[Old Ranchero]

In Europe. It'll be interesting to see if states and federal laws will allow this.

Did you read the whole article? Sounded to me like they are adapting the not well sorted out US program to Europe?

 

[The Weatherman]

West Virginia's and North Carolina's revised laws allow automakers to take customer reservations for vehicles but require automakers to send those reservations to a dealership. The bills also prohibit automakers from interfering with price negotiations, trade-in values and vehicle protection product sales.

Source: New Franchise Laws May Change How Auto Dealerships Operate - Dealer Ops - Auto Dealer Today (autodealertodaymagazine.com)

These are the two states updating dealer franchise laws and it's pretty clear they aren't going to change them all that much.

How’s that working out for buying a car at MSRP without a big Adjustment Fee ?

 

[GonnaGetItOneDay]

The direct to customers sales model the article it's referring to is in regards to EV vehicles, I don't think this is an indication that we are going to see this model for the ICE or hybrid vehicles in the US.

 

[tkistre]

I could be wrong, but when the chip shortage started and people were starting to have to order the vehicle they wanted, I believe I remember reading an article about how in Europe, most dealers only have a handful of vehicles and most of their purchases were ordered vehicles.

 

[Maverickman74]

They just threw that out incase the dealers didnt adopt the new EV model whatever that will be. Saw something recently about 80-90% of dealers accepted the new EV plan.

 

[CTYankee]

How’s that working out for buying a car at MSRP without a big Adjustment Fee ?

I'm not sure what point you're making since mine was that dealers still seem to have a lock on their ability to continue business as usual.

 

[Old Ranchero]

They just threw that out incase the dealers didnt adopt the new EV model whatever that will be. Saw something recently about 80-90% of dealers accepted the new EV plan.

Last news I saw from Ford on this was ~2000 of 3000 signed up for the new EV dealership plans. So ~ 67% . There will also be another window for dealers to join after a 2 year lock out period.

 

[Maverickman74]

Last news I saw from Ford on this was ~2000 of 3000 signed up for the new EV dealership plans. So ~ 67% . There will also be another window for dealers to join after a 2 year lock out period.

I knew it was a high number but yours does sound right.

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