Ford moving towards custom orders, away from huge inventories

[Stranger706]

Looks like Zach and Jay were on to something

https://www.caranddriver.com/news/a37187201/ford-build-to-order-online-ordering-changes/

Sponsored

 

[Kennysum1]

Manufacturers would be tickled to death to move to this model. It will boost their profit margins by a ton. No longer will they have to offer crazy 15% off MSRP discounts to move old inventory. Everything will be built to order and sold at MSRP like other goods.

No more estimating what stock to build. I worked as a consultant for a dealership before and was involved in everything from revamping the sales process to ordering new cars. It is a pain in the ass to try and do your best to look at historical data and current market trends to order inventory that will not be arriving for months.

Do not blame them for trying to move in this direction.

 

[Smunczen]

I’m sure some dealers will be hurt by this. No just looking at cars and taking one home that day. Look to Ford to try to get rid of the dealer network. They want all the profit from start to finish. They got rid of all the Motorcraft parts distributors in the early 2000’s to keep all that profit. It going to be a progression. The Tesla model of car buying and servicing.

 

[ice445]

Zero surprise. The chip/inventory shortages boosted their profits significantly.

 

[Hack]

I like the idea of custom orders, as long as the options I want are available and the time to get the vehicle is relatively short (weeks, not months or years).

I think that the options I want will not be available, and this will just make the buying process suck more. No way to get my car today. Instead I have to sit and wait for the car to get to the front of the manufacturing queue, be built and shipped to me.

Yes I can order my Bronco, but I won't get it until 2024. Fun.

 

[Stang 19]

Interesting...i only once ordered my stang exactly like I wanted and it took forever, so I now search inventory and locate/ purchase and it has worked very well.

Link to article:

https://www.caranddriver.com/news/a37187201/ford-build-to-order-online-ordering-changes/

 

[cactus_kid]

Full circle dude ! That is how it used to be. The orientals changes all that when they invaded the US market. I can remember (WW II war baby here) Most of the big three dealers were in surplus quonset huts due to the building mat'l shortage. They'd have maybe one of each model and a pick up or two to look at. Sales had these big flip books showing the colors and options. Kind of like ordering Chinese. Picked this and that. Signed the paperwork and waited for the car to be delivered. This is why I don't like to buy lot cars. I don't want 90% of the crap dealers load on to their cars.

 

[Dave2013M3]

Interesting...i only once ordered my stang exactly like I wanted and it took forever, so I now search inventory and locate/ purchase and it has worked very well.

Link to article:

https://www.caranddriver.com/news/a37187201/ford-build-to-order-online-ordering-changes/

To be honest, this is the way most of the world operates. Very limited on hand inventory and you order the way you like. In Japan, Europe this is very common.

 

[Dave2013M3]

Full circle dude ! That is how it used to be. The orientals changes all that when they invaded the US market. I can remember (WW II war baby here) Most of the big three dealers were in surplus quonset huts due to the building mat'l shortage. They'd have maybe one of each model and a pick up or two to look at. Sales had these big flip books showing the colors and options. Kind of like ordering Chinese. Picked this and that. Signed the paperwork and waited for the car to be delivered. This is why I don't like to buy lot cars. I don't want 90% of the crap dealers load on to their cars.

My Father worked for Berge Ford and Mel Clayton Ford in Phoenix through the early 70s and up until his retirement in early 90s. They always had packed dealerships and especially Cali when I moved here in the late 80s after the Army. So how long ago are we talking here??

 

[Arthonon]

Interesting. I ended up ordering my Mustang, and it took about 3 months to get, but I was happy to get it exactly the way I wanted.

I wonder what this will do for pricing. I got a better price on my previous Mustang because it had been on the lot for a while and they wanted to move it. Having to order would eliminate deals like that, I assume. I got my order for $5K under MSRP, but that may be tougher to do without the pricing pressure from cars on the lot.

 

[cactus_kid]

My Father worked for Berge Ford and Mel Clayton Ford in Phoenix through the early 70s and up until his retirement in early 90s. They always had packed dealerships and especially Cali when I moved here in the late 80s after the Army. So how long ago are we talking here??

Early to mid fifties .............. I'm on the high side of my mid seventies.

 

[K4fxd]

Having to order would eliminate deals like that,

This is the main reason.

 

[RichGT350R]

If this happens the dealers are screwed! You might as well have you car delivered by Uber or Lyft! In which case, the dealers will have to only worry about service. That means they might as well close because service sucks. Maybe, just Maybe service will get better if they want to survive!

 

[cactus_kid]

If this happens the dealers are screwed! You might as well have you car delivered by Uber or Lyft! In which case, the dealers will have to only worry about service. That means they might as well close because service sucks. Maybe, just Maybe service will get better if they want to survive!

Won't work. They don't have franchise tags.

 

[2018Creamsicle]

If this happens the dealers are screwed! You might as well have you car delivered by Uber or Lyft! In which case, the dealers will have to only worry about service. That means they might as well close because service sucks. Maybe, just Maybe service will get better if they want to survive!

This is exactly why I seriously doubt this will happen. The dealer associations will raise holy hell and file lawsuits left and right. This model will eliminate the spur of the moment sales where people just drop by to look at all the shiny new cars , haven’t done any research, and aren’t really ready to buy but end up buying anyway. This kind of uneducated consumer is where most dealers make a killing by bending them over. I just don’t see them willing to give that up without a fight.

I seriously doubt if Ford gets its way and makes everything go to an order model that they’ll pass any savings on to us either.

Sponsored