Ford moving toward build-to-order, away from huge dealer inventories

[Bronclahoma]

Looks like Ford is going to try something transformational in auto marketing.

Ford Moving toward Build-to-Order, Away from Packed Dealer Lots (msn.com)

Sounds like a good option, no one enjoys the current car buying process. Should be good competition for lowest price, but dealers will still find ways to tack on fees etc. This would also help with parts shortages, not trying to build the huge dealer inventories, but concentrating selling to customers who are ready to buy now. We'll see how this works.

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[69cuda340s]

Ford is currently loving the reduction/elimination of the normal huge rebates they used to offer to move vehicles off of dealers lots. So their dream is to keep inventories low to keep prices and profits high. Meanwhile when ppl order vehicles build dates continuously get pushed, or Ford builds it puts in a yard to sit for several months, Ford raises prices and wants customers who waited 1/2 year or more to pay the new higher price, then we have the usual scum bag dealer games to deal with etc. When delays occur there is no empathy from Ford to customers who wait excessive lengths of time for ordered vehicles. There is no "sorry for the delay" or "we apologize for an inconvenience this delay causes you". Nothing but a big middle finger from Ford to their waiting customers. And Ford has fumbled custom ordered vehicles for a long time this isn't just a new thing caused by COVID. So they need to make a lot of improvements before ppl are going to adopt this special order low dealer inventory concept.

And if Ford's competition has vehicles on lots that customers can look at and buy on the spot Ford will lose sales and be forced to have dealers stock lots again in order to compete.

 

[birddog2]

Now if the CEO and the marketing folks would talk to the production folks and actually build the cars that people have ordered this might work.
However, if the current "take orders and expect buyers to have infinite patience" system continues good luck.
Our local dealer received a big Bronco this week for the first time ever and has 2 Bronco Sports listed as "in transit".
When they arrive, they will be to first BS he has had in over 3 months.

 

[Fossil]

what a concept, order a vehicle, wait a few weeks, drive away.

reminds me of the good old days. what's next, bell bottoms?

 

[Bronclahoma]

Now if the CEO and the marketing folks would talk to the production folks and actually build the cars that people have ordered this might work.
However, if the current "take orders and expect buyers to have infinite patience" system continues good luck.
Our local dealer received a big Bronco this week for the first time ever and has 2 Bronco Sports listed as "in transit".
When they arrive, they will be to first BS he has had in over 3 months.

I think Ford is looking beyond pandemic shortages. The American auto industry has over-produced for years trying to keep plants running and secure market share at the cost of lower profits. They still propose to have a 50-60 day supply on dealer lots.

 

[Jrl]

Ford is currently loving the reduction/elimination of the normal huge rebates they used to offer to move vehicles off of dealers lots. So their dream is to keep inventories low to keep prices and profits high. Meanwhile when ppl order vehicles build dates continuously get pushed, or Ford builds it puts in a yard to sit for several months, Ford raises prices and wants customers who waited 1/2 year or more to pay the new higher price, then we have the usual scum bag dealer games to deal with etc. When delays occur there is no empathy from Ford to customers who wait excessive lengths of time for ordered vehicles. There is no "sorry for the delay" or "we apologize for an inconvenience this delay causes you". Nothing but a big middle finger from Ford to their waiting customers. And Ford has fumbled custom ordered vehicles for a long time this isn't just a new thing caused by COVID. So they need to make a lot of improvements before ppl are going to adopt this special order low dealer inventory concept.

And if Ford's competition has vehicles on lots that customers can look at and buy on the spot Ford will lose sales and be forced to have dealers stock lots again in order to compete.

Ford will be the big losers if they fall into that trap for any length of time. Looks good on paper but will fall to competition. Nice program for FMC not so good for honest dealers and least let us not forget the end user. Great try FMC , comes down to here’s my money where is my car . 2020 has been no good for anyone, let’s try not pattern from that mess .

 

[Excape]

Stupidest idea ever.

This "order and wait" process with the Bronco and Bronco Sport has pissed off more customers than ever before. If these products were not unique, many would have fled to other manufacturers with available product (as some have).

Ford has a history of thinking they "know the market" and missing the mark. Remember, in 2011, when their CEO stated that their studies have shown than anyone not buying an F-150 needs to be in one of our cars, like a Focus. There isn't any need for a smaller truck than the F-150.

We'll see how this works, and how their dealers tolerate it. Many automotive purchases are emotional and spontaneous. That "new car smell" computer peripheral hasn't been marketed yet, so they'll miss that buyer segment.

 

[Glamdring70]

Short term solution? OK. Long term goal? Bad idea. People like to shop and bring something home. Some people try to score that dealer order that's been sitting for 5 months, hoping to get a better deal. If they could turn orders in 3 days, maybe they would be on to something.

Even furniture gets stocked nowadays. Remember when people used to order a LayZBoy and wait months for delivery? No longer. People like to load up at Costco or the Gallery showroom and get it home.

 

[13MikeH]

And honestly I've usually walked in and purchase the vehicle I want off a lot. The only reason I built is they didn't exist.

 

[Bronco II]

And Ford is talking that their going to go to having us order vehicles instead of having so many cars on dealer lots. Ford is doing a abysmal job of filling orders now with a six month wait not unusual this ideal will kill Ford. I'm a Ford man through and though I've owned nothing but Ford's for forty years but if I can't get the car that I want in four to six weeks I'll take my money to another car maker who will.

Ford has had a problem for quite a few years in filling orders in a timely matter. I'm on several other Ford forums and the problem with building our special orders isn't new to the Covid pandemic.

 

[rms34208]

Looks like Ford is going to try something transformational in auto marketing.

Ford Moving toward Build-to-Order, Away from Packed Dealer Lots (msn.com)

Sounds like a good option, no one enjoys the current car buying process. Should be good competition for lowest price, but dealers will still find ways to tack on fees etc. This would also help with parts shortages, not trying to build the huge dealer inventories, but concentrating selling to customers who are ready to buy now. We'll see how this works.

The current way dealers treat customers I wish I could buy from Amazon, don,t like it return it ,never see or talk to salespeople .Very few even have full knowledge of any model.

 

[69cuda340s]

Ford has had a problem for quite a few years in filling orders in a timely matter. I'm on several other Ford forums and the problem with building our special orders isn't new to the Covid pandemic.

Yep when the Mustang got the new for 2011 5.0 engine same exact pattern. Excessive delays, parts shortages, built units sent to storage yards for months, many orders never filled ect. Wasn't any COVID around back then. But it was same old Ford pattern of fumbling ordered vehicles, zero communication to dealers, ignore waiting customers like they don't matter etc etc. And now Ford thinks they want to move to a customer ordered vehicle model what a joke.

 

[JerryC]

My 2021 4Runner is a good example of how well that will work. Couldn't have the BS I ordered for another three months maybe, but I could and did get the 4Runner.

Unless they capture a sizable down payment people like me will walk rather than wait beyond what they expect to be the delivery date. Tell them the date is several months away and most won't even make the attempt.

Getting a buyer on a test drive is the best way to sell. Catch them while they are in lust for the vehicle and get it sold. Give somebody days, weeks or months to think it over and that shiny vehicle ready for purchase elsewhere will end up in their driveway instead. This is why dealers push so hard to keep you there, they know if you leave you likely won't come back after the adrenalin and endorphins wears off.

 

[RLader]

Ford is currently loving the reduction/elimination of the normal huge rebates they used to offer to move vehicles off of dealers lots. So their dream is to keep inventories low to keep prices and profits high. Meanwhile when ppl order vehicles build dates continuously get pushed, or Ford builds it puts in a yard to sit for several months, Ford raises prices and wants customers who waited 1/2 year or more to pay the new higher price, then we have the usual scum bag dealer games to deal with etc. When delays occur there is no empathy from Ford to customers who wait excessive lengths of time for ordered vehicles. There is no "sorry for the delay" or "we apologize for an inconvenience this delay causes you". Nothing but a big middle finger from Ford to their waiting customers. And Ford has fumbled custom ordered vehicles for a long time this isn't just a new thing caused by COVID. So they need to make a lot of improvements before ppl are going to adopt this special order low dealer inventory concept.

And if Ford's competition has vehicles on lots that customers can look at and buy on the spot Ford will lose sales and be forced to have dealers stock lots again in order to compete.

I agree. I have bought many new cars, but I have never ordered one. Told dealer what I wanted and they located it or close to it at another dealer's lot. One time I went in to have a custom air filter installed and came out with a new truck instead. The dealer didn't make me pay for custom filter system!

 

[RLader]

Ford will be the big losers if they fall into that trap for any length of time. Looks good on paper but will fall to competition. Nice program for FMC not so good for honest dealers and least let us not forget the end user. Great try FMC , comes down to here’s my money where is my car . 2020 has been no good for anyone, let’s try not pattern from that mess .

Ford will be the big losers if they fall into that trap for any length of time. Looks good on paper but will fall to competition. Nice program for FMC not so good for honest dealers and least let us not forget the end user. Great try FMC , comes down to here’s my money where is my car . 2020 has been no good for anyone, let’s try not pattern from that mess .

It won't work because dealers want your trade in when deal is made. Otherwise the value of trade-in could go down. If you give them your trade-in what do you drive till your order comes in?

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