re: Ford CEO: We’ll Move to Fixed Prices

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Guess dealers will no longer be able to mark up the Raptor $40K unless they put $5K worth of after-market parts and wheels on it first and name it something stupid then call it a dealer special.

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Just more:

Destination fee
Clear coat protectant
Lot fee
Security fee
UV protectant fee

That would be so awesome. Dealers and scumbag sales people unnecessarily suck so much wealth out of that supply chain that it's amazing that it's lasted so long.

Good. frick the dealers.

Maybe not relevant to the car industry, but a lot of industries use a distribution model because it is easier to have credit terms with a select amount of distributors as opposed to establishing credit terms with every consumer.

So I can finally buy a ford maverick for $19,999?

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No other retail industry has a protected model

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Firearms.
Drugs.
The entire medical industry.
Contractors.
Utilities.
Tons of protections to maintain government sponsored business.

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Well now hold on. Can’t Ford sell direct to the end user via a “national account”? I thought one of the reasons manufacturers didn’t sell direct is because they can’t provide service on a local level? (And they really don’t want to. They just want to manufacture.) .Seems you’re complaining about a preference not a “protection”.

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It is 100% a protection. The NADA is constantly lobbying to keep dealership laws on the books, using a number of questionable justifications.

It depends on the state but in most states, car manufacturers cannot legally sell directly to consumers. Some states have added exceptions for EV’s, largely to allow Tesla sales.

I have no problem with manufacturers selling through dealers if that’s the business model they would prefer. Right now we don’t know whether the market actually supports that business model, though, because it’s mandated by state governments.

I think the Ford family is gonna axe this guy sooner or later.
Dealerships are huge profit centers for manufacturers. They carry the load of the inventory. Once ford sells a truck to a dealer it’s considered a sold unit. Ford is looking at a lot of lawsuits from dealers. When you open a franchise car store you build what the manufacturers tell you to based on sales forecast and expected market share. Dealers are forced to buy dogs along with the hot cars. “You want those Raptors, well you gotta take these beige Fusions as well” Can’t pay for them that’s ok we’ll floor plan them to you” People on the OT think of ourselves as astute car buyers but most car purchases are pretty much impulse buys. Lots of new cars are sold through the service dept. as well. “Oh your car needs a new $6k trans that you can’t afford, come on over to the new side and we can get you rolling today. Negative equity don’t worry we can roll that in at 15 percent interest” The manufacturers don’t want the backlash and can be insulted from that. Yes the markups sucked for sure but I think a lot of this was caused by tight supply and cheap/easy credit. It’s starting to normalize now. Like I said the manufacturers tell you what to build by what you’re expected to sell. Many dealers are mortgaged to the limit and they couldn’t get the cars to sell hence a good bit of the markup.

I don’t see this resulting in lower prices for the consumer. I like the game and pitting dealers against each other.

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If Tesla lawsuits are successful you will no longer see locally-owned dealerships eventually. Only used car lots may exist soon

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Good thing Ronnie Lamarque had his singing career to fall back on.

You can buy straight from any brewery/distillery but in order to buy their product from a store, they have to go through a wholesaler.