5.Oh Crush

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No more impulse buying. Sales Marketing down the crapper.
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Schwerin

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not nearly enough. There should be 2 trims 301A or 401A, 2 engines, 2 trans, perf-pack and non, and 8 colors and hardtop vs soft. But that's still 2x2x2x2x8x2 = 256 combos (32 if you discount color). Versus Apples count'em 2 (or is it 4) for the iPhone.

Then Ford has how many different CUV/Sedan/Truck models? It's insane the sheer variety of what they are offering. But they manage to make money at it, so props to them.

Inventory "mismanagement" routinely costs Ford profits by having to offer incentives. Cutting options to a half or better yet a quarter should improve margins considerably and I actually doubt it'll chase off buyers, especially if by simplifying they knock the prices down to more sensible levels.
Macbook Pro 13 has 2 CPU, 2 color options, 2 RAM options, 4 Storage options.
iMac has 7 colors, 2 RAM, 3 Storage, 2 Network, 3 Mouse, and 2 pre-installed software options.

They also have at least 22 devices total not counting for the accessories they make. Ford has about 26 and 9 of those are Work vehicles that are just modified version of something built on a E or F series chassis.

There is nothing to pointing to Apples inventory system not being able to scale to something automotive based. Apple knows when they will end a product and predicts when inventory will die off so that there is none within days of the latest item being announced. Meanwhile you'll have Ford announce a latest item and show it off MONTHS before it ever gets to a dealership, or an order form opens. That makes sales hard to predict, in turn making inventory hard to manage. If Ford for example said:

Hi, September is next month. Here is the new 2022 Mustang. Custom orders for 2021 close end of September, 22 orders start in early September, and we will NOT be shipping any 2021's to dealer lots after October, only custom orders. In January, the 22's will arrive.

They would have a MUCH better handle on Inventory. But they won't because that means there will be a lull in sales, even though it may mean they are able to make up for that in inventory savings.

Mismanagement is my whole point. scaling it down to orders and less about stocking dealers with random cars that MIGHT sell well in that region depending on how the weather is puts them in the realm of just having to hire in an Apple Inventory guy and upscaling the processes he learned there.

Cars are quickly turning into any other device just like your toaster. Want one of 2 engines, three packages and nine colors are the new "want to toast 2 slices or 4?"

Look how well Tesla sells. Spec out a Model X. You get 2 drive train options, 2-wheel options, five colors and three seating options. That's all. And people don't care. Because cars are just appliances.

The secret is... most people don't want to have many options they want to know what works and buy it. They aren't car people, and car people don't really make makers a profit. Appliance buyers do.
 

5.Oh Crush

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I m a little older and have bought dozens of new cars in my lifetime, NEVER ordered one. Always searched then put my hands on before buying. Always thought I d get a better deal that way. Now after searching for months and not finding the right car at the right price (due to covid issues ) I ordered a Mach 1. My first order and I m not sure how this will play out.
1. I think I got a fair price at %4 below invoice and thats if nothing changes . In this unique time everything seems uncertain.
2. Delivery time can keep changing and I don t like the wait although I don t need the car.
For me I d rather visit a dealer with 10 Mustang s on the lot.
I ll reserve my judgement on ordering a car until the deal is done.
I think I went with a reputable dealer that I got right here!
Agree. Most people want to test drive and marketing sales does the trick. It’s just silly to think all ordering pitch will work. The market will collapse.
 

5.Oh Crush

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I never bought a new car off a dealer lot. All six of my Mustangs were custom ordered. I was never disappointed by a custom order yet. I think Ford is wise to have the majority of its customers order their cars instead of buying off the lot. Dealers must spend a lot of money on loans to have so very many cars on a lot. Even with custom orders we still need dealers to perform the Dealer Prep on the car before the customer takes the car home. I do not see dealers being eliminated by custom orders. Dealers will always have some new cars and trucks on display so you can see the new designs and features.
In marketing terms, it is not a good idea for Ford. They will lose.
dealers will not play nicely. Dealers will sell big property.
 

LOL WUT

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The whole limited inventory on the lot works for Tesla pretty well.. I am not surprised to see this change be in discussion.
 

Ratchet27

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It's one thing to order and have to wait on a Mustang or something special. But no one is going to wait months on some basic transportation order (base level Escape and so on).
 

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Early to mid fifties .............. :crackup: :party: I'm on the high side of my mid seventies.
I am pushing 78. I remember those days as well. The local dealers had maybe 3 or 4 new cars on the showroom floor and they weren't for sale. The lot outside was all used cars and a handful of new ones waiting to be delivered. You ordered a new car and waited 6 weeks. They always quoted 6 weeks. As i recall, that business model persisted around here well into the early to mid 60s.
 

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Dave2013M3

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The dealer model is in it's death throws. Tesla challenged it (and won some, lost some). There's absolutely no credible reason why you should have to order a vehicle through a 3rd party (aka dealer). You should be able to spec and buy the vehicle of your choice directly from the manufacturer. This would serve manufacturers better (in the long run) and customers better.

The stranglehold dealerships have on the law is about as anti-freedom as not being able to purchase cable channels ala carte. It's amazing people don't wake up to the idea that it's a cartel that lobbied for laws that end up fleecing consumers.

Tesla service is awful though. I pray that they don't go that far. Horror stories where it takes months to get your Tesla fixed under warranty.

The only real advantage of buying direct is on the specialty cars there will be no ADM. Although in most of Europe ADMs are illegal.
That's the one with the hideous grill?
Yes, looks a lot better in person. I actually like it.
 

PoCoBob

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It'll never be buying direct from Ford. Having worked for a multinational company I know the last thing they want is to get caught up dealing with every regions different laws and regulations, as well as having millions of different accounts receivables for every person that buys one of their vehicles. Tesla can do it because in reality they sell very few cars. I live on the left coast of Canada and they are everywhere but I've read we are the best market they have in the world. Go east or south and you never see one. Most places they're still a novelty.

The dealer model may change but it won't be going away anytime soon.

Edit to add: I'm now seeing a Mach E on the streets almost daily and they've only been available for a few months here. It'll be interesting to see how Tesla reacts to a serious competitor, up until now they really have had the market to themselves.
 
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Smunczen

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The dealers that play nice will be given the chance to become a factory service center.
 
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Angrey

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Tesla service is awful though. I pray that they don't go that far. Horror stories where it takes months to get your Tesla fixed under warranty.

The only real advantage of buying direct is on the specialty cars there will be no ADM. Although in most of Europe ADMs are illegal.


Yes, looks a lot better in person. I actually like it.
First off, I'm not a fan of government controls (i.e. outlawing ADM's). It's a bandaid on top of a deeper problem.

Secondly, I'm not arguing that free markets are perfect (that's always the misconception) I'm simply stating that a marketplace where the consumer is free to make their choice is almost always the best option (or the one with the least amount of detractors and the healthiest from many aspects).

Some people prefer the benefits a dealer (and probably would be willing to pay for them willingly).

My only point is that the consumer is robbed of the opportunity. The dealer cartels have passed legislation that FORCES (making it illegal) for manufacturers to sell their automobiles through an intermediary. That intermediary adds cost. That intermediary MAY add additional value and benefit (which is part of their justification) but the extent is certainly different and debatable for each individual person.

I don't HAVE to buy countless products through a 3rd party seller (although some have CHOSEN, Voluntarily to operate that way). Many products we can skip the intermediary and buy directly from the manufacturer.

As with all things, I prefer the seller (in this case the manufacturer) and the buyer to make those choices, not the state.

It's noteworthy to point out that dealerships aren't just there at the purchase portion of a new vehicle, but they're usually the administrators of factory warranty and repair service work. This is both a blessing and a curse and again, can be a good thing or a bad thing, depending on all the specific parameters involved. Some dealers are great for warranty work and service. Others not so much.

I can buy a firearm directly from MANY manufacturers. I can deal with those manufacturers DIRECTLY for any warranty or service needs. It can be done, and done effectively and done well. But we don't really know because the cartels and the state took that opportunity away, and it's anti-freedom, it's anti-free market and it's largely un-American. But Americans put up with a lot of shit that's contra to our founding.

I used cable television, which is one similar. I should be able to buy only the channels I want to consume. Instead, the networks lobbied politicians to pass laws that make it illegal for cable providers to offer ala carte channels. They have to be sold in packages or bundles. It's bullshit.
 
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