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Ford CEO: We’ll Move to Fixed Prices
Posted on 5/28/23 at 7:25 am
Posted on 5/28/23 at 7:25 am
quote:
Ford plans to move to non-negotiated prices for all its vehicles, CEO Jim Farley told investors yesterday. Farley did not place a time frame on the decision.
The announcement came as part of Capital Markets Day — the first in-person conference for investors Ford has held since 2016.
Move May Apply to All Vehicles or Just EVs
Reports differ on exactly what Farley said. The Associated Press reports that the CEO “said Ford will go to non-negotiated vehicle prices.” But the Detroit Free Press says, “Non-negotiated prices will be part of improving the customer experience for electric vehicle [EV] shoppers,” suggesting that the policy may apply only to EVs.
LINK
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.
25
Posted on 5/28/23 at 7:26 am to stout
Terrible news for the Affliction crowd
Posted on 5/28/23 at 7:27 am to stout
The dealers are proving themselves to be too costly of a middleman. This is on them.
Posted on 5/28/23 at 7:29 am to stout
Negotiations have traditionally been in the dealers favor. Of course used cars will still be open to this.
Posted on 5/28/23 at 7:29 am to Giantkiller
quote:
The dealers are proving themselves to be too costly of a middleman. This is on them.
Elon is still suing states, including LA, to cut out dealers.
No other retail industry has a protected model where consumers can't buy straight from a manufacturer if the manufacturer wants to sell to them except for car dealers. It's time to end the protection.
Posted on 5/28/23 at 7:31 am to stout
Dealers did this to themselves.
Too many complaints this past 2 years of people ordering special vehicles like the bronco, f150 lightning etc and after a long wait to be delivered finding that their dealer wanted to add another 5-10k on top for market adjustment with no recourse.
Too many complaints this past 2 years of people ordering special vehicles like the bronco, f150 lightning etc and after a long wait to be delivered finding that their dealer wanted to add another 5-10k on top for market adjustment with no recourse.
Posted on 5/28/23 at 7:33 am to stout
quote:
No other retail industry has a protected model where consumers can't buy straight from a manufacturer if the manufacturer wants to sell to them except for car dealers. It's time to end the protection.
Alcohol and cigs.
I guess it depends on how you define retail, but regardless I agree with you. Crazy government protects certain businesses.
This post was edited on 5/28/23 at 7:34 am
Posted on 5/28/23 at 7:35 am to stout
Saturn, when introduced, had fixed prices which worked but the quality/ride was not a good as its competitors.
Posted on 5/28/23 at 7:37 am to stout
quote:
No other retail industry has a protected model where consumers can't buy straight from a manufacturer if the manufacturer wants to sell to them except for car dealers. It's time to end the protection.
Alcohol/Beer distributors.
Posted on 5/28/23 at 7:37 am to Macfly
Saturn also had that whole dent proof car model. How they allowed
Altima to take that market is amazing.
Altima to take that market is amazing.
This post was edited on 5/28/23 at 7:38 am
Posted on 5/28/23 at 7:38 am to stout
Somebody got to pay for the pride commercials
Posted on 5/28/23 at 7:39 am to Jcorye1
quote:
Alcohol and cigs.
I bought beer straight from a local brewery yesterday
If I wanted to I could go to Bayou Rum today on I10 and buy straight from them. I know because I have done so.
Are they banned by law from selling straight to consumers like auto manufacturers are?
This post was edited on 5/28/23 at 7:49 am
Posted on 5/28/23 at 7:39 am to stout
quote:
No other retail industry has a protected model where consumers can't buy straight from a manufacturer if the manufacturer wants to sell to them except for car dealers. It's time to end the protection.
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”.
Posted on 5/28/23 at 7:41 am to stout
quote:
No other retail industry has a protected model where consumers can't buy straight from a manufacturer if the manufacturer wants to sell to them except for car dealers. It's time to end the protection.
That depends on the industry. In the professional AV equipment field where I work, sometimes I try to buy direct from the manufacturer, but some manufacturers will not do direct sales or will charge straight MSRP to discourage direct purchases. They will send you to their network of dealers who can sell you the same item and sometimes drop ship from the manufacturer for less.
Posted on 5/28/23 at 7:45 am to tigerinthebueche
quote:
I thought one of the reasons manufacturers didn’t sell direct is because they can’t provide service on a local level?
That was the excuse way back when. That is no longer true. A company like Tesla can and has set up its own service centers
Tesla sues car dealers in Louisiana, part of broader campaign to allow for direct sales
quote:
Electric-car maker Tesla has filed a federal lawsuit aiming to overturn a Louisiana law that bars carmakers from selling cars directly to customers in the state.
The lawsuit, filed Friday in the U.S. District Court for the Eastern District of Louisiana, argues that a 2017 update to the state's long-standing law against direct-to-consumer car sales "effectively shut out of Louisiana the consumer-centric, free-market solution that is a more efficient, consumer friendly business model for today’s automotive consumer."
It further argues that the direct-sales approach is needed to adequately explain the benefits of its electric vehicles to customers.
The legal move is part of a widespread campaign by the Austin, Texas-brd car company to try and break down a decades-old franchise system that keeps the business of retail car sales separate from manufacturing.
The dealership system in the car industry dates back decades to when independent dealers argued they could prevent carmakers from having too much power over consumers and to ensure local after-sales servicing.
However, in recent years 18 states have changed laws requiring independent dealers in direct response to Tesla and its mold-breaking direct-sales strategy. At the same time, several states have doubled down on laws preventing direct sales, with Louisiana and Texas — Tesla's new home state — among them.
Posted on 5/28/23 at 7:45 am to Tarps99
Question. Can’t people already go online and order the exact truck with exact options they want without having to deal with the dealer?
Posted on 5/28/23 at 7:46 am to Tarps99
quote:
That depends on the industry. In the professional AV equipment field where I work, sometimes I try to buy direct from the manufacturer, but some manufacturers will not do direct sales or will charge straight MSRP to discourage direct purchases. They will send you to their network of dealers who can sell you the same item and sometimes drop ship from the manufacturer for less.
That's not a law. That's their preference.
It is an actual law that car manufacturers can not sell direct to consumers.
Posted on 5/28/23 at 7:46 am to GAFF
quote:
Question. Can’t people already go online and order the exact truck with exact options they want without having to deal with the dealer?
Pretty sure it still involves the dealer in some way and they get a cut.
Someone correct me if I am wrong.
ETA:
Tesla found a way around it for now
quote:
A car buyer in Louisiana who wants to buy a Tesla currently can do so by ordering via the company's website, which is then considered to be an out-of-state purchase.
Tesla opened its first and, so far only warehouse in Louisiana three years ago, at the corner of Tchoupitoulas Street and Washington Avenue in New Orleans. New cars are delivered there. It is also the company's only service center in the state.
Still not the same as having a retail dealership where people can go look and shop which hurts Tesla and creates an unfair market
This post was edited on 5/28/23 at 7:51 am
Posted on 5/28/23 at 7:50 am to Giantkiller
quote:
The dealers are proving themselves to be too costly of a middleman. This is on them.
Not really. They are an expensive non-necessity. Technology has made dealers unnecessary, just as it made book stores unnecessary. It’s not the dealers’ fault; it’s just part of the evolution that comes with the march of time.
Posted on 5/28/23 at 7:53 am to stout
quote:
at the corner of Tchoupitoulas Street and Washington Avenue in New Orleans.
Jesus, that place has to be more secure than Fort Knox. I’m shocked that they put it there. That's just asking for trouble. I have to believe that they leave those cars uncharged.
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