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Discussion Starter · #1 ·
The Ford brand will transition to exclusively online, fixed-price, delivered-to-your-door sales for EVs, CEO Jim Farley said, according to USA Today.

"We've got to go to non-negotiated price. We've got to go 100 percent online. There's no inventory (at dealerships), it goes directly to the customer. And 100 percent remote pick up and delivery," he said during Bernstein's Annual Strategic Decisions Conference, per USA Today.


 

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Discussion Starter · #5 ·
I couldn't agree more. And, like the article states, Tesla has proven that the fixed-price, build-to-order model now works. Most buyers seem to be adapting to the rapidly-changing landscape of automobile buying. In less than a year, we've gone from full lots of vehicles that had been sitting around for weeks or months just waiting to be purchased for thousands below MSRP to now waiting weeks or months and paying thousands over MSRP - AND PEOPLE ARE STILL BUYING THEM LEFT AND RIGHT!

I suspect car buying will never be the same again - and I think I'm okay with that.
 

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How will Ford circumvent to present laws in the majority of states that prohibit direct to consumer sales? He may say that, but it will be an uphill battle against dealers.
 

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Dealers have been very effective at getting multiple state laws passed to restrict such direct sales. Tesla had an easier go, since they started "no-dealer" from scratch. I predict Ford will have a rougher time implementing this. They are going to be inundated with lawsuits.

I agree, this is the way the industry should move. I just think they will have a very rough time implementing it.
 

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Discussion Starter · #8 ·
Perhaps this is why Ford (and some others) are splitting off their EV's into new divisions to circumvent the system. Ford is splitting into two divisions - Model E for EV's and Blue for ICE's. This is just a wild guess since that's all way above my pay grade. :)

I guess it'll be push-pull for a while. Dealer lobby groups are big, but so are automakers. Ultimately, I bet the dealers lose.
 

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I have to look over any vehicle I buy - It took 8 Ridgelines for me to find one that was defect free. Every one goes thru the car was and if any leaks anywhere - it is a reject for me.

I guess there is no Ford in my future.
 
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How will Ford circumvent to present laws in the majority of states that prohibit direct to consumer sales? He may say that, but it will be an uphill battle against dealers.
Wasn't it the manufacturers who demanded that states make it impossible for Tesla to do direct sales to states in the first place, without a dealership? This might just come back to bite them on their jolly assets. :D
 

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I have to look over any vehicle I buy - It took 8 Ridgelines for me to find one that was defect free. Every one goes thru the car was and if any leaks anywhere - it is a reject for me.

I guess there is no Ford in my future.
Undoubtedly, this will spread to ALL car manufacturers eventually. Guess you better keep your present vehicle.
 

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Discussion Starter · #16 ·
Most of any dealer's profit comes from service and parts followed by used car sales followed by new car sales. They may not put up as much of a fight as some might think if they are no longer allowed to sell new cars.

At least before the pandemic, profits on new car sales were razor-thin.
 

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YAA has reported about this a while back but now changes are in store for Europe. Will it take place in the US?. It's different now anyway with usually picking from a dealer allocation.

 

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Discussion Starter · #19 ·
Without sales support there will not be enough volume to support a service center only.
Bill
  • No need for a multi-acre lot to store inventory that waits for buyers
  • No inventory tax to pay
  • No floor-planning costs to pay
  • No labor required to move, wash, charge, and repair damage to hundreds of cars that have been sitting on the lot for weeks or months
  • Less staff being paid to sit around and watch TikTok, swap stories about who they cheated on their spouses with, exchange drugs, and flag people down who drive through the lot

Dealerships both big and small will be just fine without new car sales. :)
 

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Dealerships both big and small will be just fine without new car sales. :)
I will use your Tesla model as an example where the closest Tesla service center where we live in Oregon is 250 miles. There are no service centers at all in the state of Montana, requiring some to travel over 500 miles.

Bill
 
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