Ford CEO-"Got to go 100% online"

[JABIII]

Ford CEO Wants Vehicles Sold Online Only With Non-Negotiable Pricing
He spoke at length about consolidation and change in the auto industry at Bernstein's 38th Annual Strategic Decisions Conference.

Jun 02, 2022

By: Christopher Smith

Ford CEO Jim Farley had much to say at the Bernstein's 38th Annual Strategic Decisions Conference, which took place on June 1. He spoke at length about evolution and consolidation in the auto industry on virtually every level, which includes dealerships. From his perspective, he sees a shift to online vehicle sales with non-negotiable prices and remote deliveries.

That's not to say dealerships would disappear completely. Towards the end of the hour-long conversation, Farley likens Ford's current position to that of retail company Target, which added an e-commerce aspect to its physical locations to better compete with Amazon.

"It's exactly what we have to do on the retail side," said Farley. "We've got to go to non-negotiated price. We've got to go 100 percent online. The vehicle, there is no inventory so it goes directly to the customer, 100 percent remote pickup and delivery."

While Farley doesn't directly reference Tesla during this part of the discussion, it's largely implied that he sees the California-based EV company as the competition in this manner. Tesla doesn't operate with a traditional dealership network, but Farley views Ford's future dealership network as specialized with multiple tiers, providing retail customers in-person, long-term support.

"But then we have this opportunity to use our physical presence, outperform [the competition]," he said. "Like, I believe some Mach-E and Lightning customers would love to have a Mustang for the weekend. Maybe they want a Super Duty. [Ford] can do that, [the competition] can't."

Dealerships have certainly come under scrutiny in the last year or so amid dwindling new-vehicle stocks. Selling prices above the MSRP have become commonplace, with some higher-demand models seeing significant markups. Some dealerships have also come under fire for allegedly altering signed lease contracts, adding additional fees, or refusing to let leaseholders buy out the car. Infiniti issued a warning to dealerships over potential improper conduct regarding lease contracts, while Ford and General Motors issued general warnings about excessive price markups that could harm automaker relationships with customers.

https://www.motor1.com/news/589745/f...otiable-price/

[DJP]

Another good idea would be to make enough vehicles to sell.

[doe killer]

Still gonna need a dealership to fix all the broke was fords.

[Bigtimber2]

So no cheesy person to ask what kind of payment are you looking for.


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[Cwaysvt]

Surely they’d still have to have a showroom to see the vehicles in person?

And on a side note I worked as a tech at a Ford dealer for years. The salesmen are bad in a corny way. But service writers are the ones that’ll sell you down the road in a heartbeat.

[willk]

Had a conversation about this the other day. Essentially, dealerships will become solely a service center with used car inventory with some demo vehicles.

[Sportin' Woodies]

Mens jewlery sales are gonna plummet

[DRDUCK]

BAAAAAAAAAAAAAA! You right SW. Hope ford goes broke but not possible cause YOUR gubment woke to shit will bail them out THIS TIME

[SCSwitchback]

BAAAAAAAAAAAAAA! You right SW. Hope ford goes broke but not possible cause YOUR gubment woke to shit will bail them out THIS TIME

Oh the irony

[Bigtimber2]

Oh the irony

Yep. Ford didn’t receive a bailout while GM and it employees took the welfare. Ford took out a loan they are still paying. I drive a Chevy. But I did pick up some Ford stock at the bottom.

Be woke.


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[Remy]

I mean it makes sense. I hope they do go to the online with standard pricing model. In this day and age where prices are known there’s no point in trying to haggle with some middle aged man over $500.

[WoodieSC]

Yep. Ford didn’t receive a bailout while GM and it employees took the welfare. Ford took out a loan they are still paying. I drive a Chevy. But I did pick up some Ford stock at the bottom.

Be woke.


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And GM is now heavily owned and controlled by the CCP. They are already planning to build 10 or 11 plants in China along with a new corporate engineering center. GM is no longer an American company.

[Bigtimber2]

Blame the unions.

We landed the KIA job in Savannah.

[trkykilr]

I think there will always be a desire by people to do business with people. Not everyone wants to do business that way, but enough will. Dealerships are currently more profitable than ever.

[Model12]

Hell No...........Never........I will still have to touch/crawl under/drive etc. before I buy new..........NEVER will buy a "pig in a poke"'

[Saltydog235]

Y’all realize it’s for EV’s only right?

[hunterjw]

For one, I feel like some people like to go to the dealership and “get a good deal”. Also, when the tide swings the other way and vehicles aren’t sold at msrp or above the dealerships make all of their money in F & I (finance and insurance). Someone in sales and in person is much more effective than online click buttons.

[willk]

Y’all realize it’s for EV’s only right?

For now.

For one, I feel like some people like to go to the dealership and “get a good deal”. Also, when the tide swings the other way and vehicles aren’t sold at msrp or above the dealerships make all of their money in F & I (finance and insurance). Someone in sales and in person is much more effective than online click buttons.

Just like Hank Hill. "Not a penny over sticker price".

[willk]

Y’all realize it’s for EV’s only right?

For now.

For one, I feel like some people like to go to the dealership and “get a good deal”. Also, when the tide swings the other way and vehicles aren’t sold at msrp or above the dealerships make all of their money in F & I (finance and insurance). Someone in sales and in person is much more effective than online click buttons.

Just like Hank Hill. "Not a penny over sticker price".

[Saltydog235]

Y’all realize it’s for EV’s only right?