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Who says a manufacturer can't control dealer pricing? (Just ask Dodge)

Spa2k

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From FCA today:

June 20, 2017 , Auburn Hills, Mich. - The limited-production, 840-horsepower Dodge Challenger SRT Demon – the fastest quarter-mile production car ever – is due to start arriving in dealerships this fall. Today, Dodge is announcing just how it will allocate these rare beasts to its dealer body.

“We learned a lot when we launched the wildly popular SRT Hellcats,” said Tim Kuniskis, Head of Passenger Car Brands, Dodge, SRT, Chrysler and FIAT—FCA North America. “We’ve taken that information and created an allocation plan that is clear and concise, builds on Demon’s position as the Dodge//SRT halo and makes it easy for our customers to understand how they can put a Demon into their garage and, ultimately, out on the drag strip.”

The Dodge Challenger SRT Demon is the first-ever production car to do a front-wheel lift, as certified by Guinness World Records, and it’s the world’s fastest quarter-mile production car with an elapsed time (ET) of 9.65 seconds at 140 miles per hour (mph), as certified by National Hot Rod Association (NHRA). It also registers the highest g-force (1.8 g) ever recorded at launch in a production car.

“The 2018 Dodge Challenger Demon represents the best of what Dodge//SRT stands for – performance capabilities that are second to none, iconic styling and a heritage built on pushing the boundaries of what is possible at a price that is attainable,” Kuniskis added. “We know some dealers may be tempted to sell to the highest bidder, but we are encouraging them to leverage the Demon as a halo for both the brand and their dealership, to bring customers into their showrooms and see everything we have to offer.”

The 2018 Dodge Challenger SRT Demon allocation plan is consistent with that philosophy. Here is how Demon will be allocated to dealers:
  • To be eligible to order a Challenger SRT Demon, dealers must have sold more than one SRT Hellcat in the last 12 months
  • Dealer allocation will be based on 60 percent SRT Hellcat and 40 percent Charger and Challenger sales performance
  • Dealers can only order as many Demons as they are allocated
  • Demons sold at or below MSRP will receive priority scheduling resulting in lower serial numbers
  • Demons sold for a price that exceeds MSRP will be produced after priority production is completed

Dodge is also creating a new Demon Concierge hotline (800-998-1110) to provide direct communication for customers and dealers. A new website will also allow them to track their orders at www.dodge.com.

To qualify as a verified sold order, an acknowledgement document must be completed and signed by the customer, the dealer and be notarized. The document must be received by the Demon Concierge before the vehicle will be slated for production. This important document serves two purposes:
  • Provides a detailed list of safety considerations, technical specifications and features on the vehicle; and
  • Helps determine priority production based on customer-facing contract price

Dealers can start placing orders for the Demon on Wednesday, June 21. Production of the limited-edition, serialized, single model-year (3,000 United States/300 Canada) Challenger SRT Demon begins later this summer; deliveries to Dodge//SRT dealers to begin this fall.
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honeybadger

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We learned a lot when we launched the wildly popular SRT Hellcats and from Ford's GT350 ADM shit show.
There. Fixed it for them.

But in all seriousness, Kudos to Dodge. So far they've handled the Dodge Demon stuff in a very cool way. Hope others follow suit!
 

Houston Kid

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A rare Dodge win when not going in only a straight line.
 

car crazy

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I don't see any way this is going to prevent the majority of dealers from asking 20k over MSRP. Why does a dealer care if the customer has priority? Do they want a small profit 6 weeks from now or do they want a large profit (20k ADM) in a few months?

Curious to see how this works out. Porsche can't figure it out (trying to get a 991.2 GT3 and local dealer told me they would have a closed auction for allocations - lol). Ford can't figure it out.
 

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I don't see any way this is going to prevent the majority of dealers from asking 20k over MSRP. Why does a dealer care if the customer has priority? Do they want a small profit 6 weeks from now or do they want a large profit (20k ADM) in a few months?

Curious to see how this works out. Porsche can't figure it out (trying to get a 991.2 GT3 and local dealer told me they would have a closed auction for allocations - lol). Ford can't figure it out.
I believe Porsche has a VIP list that new vehicles are offered to at MSRP. For example the Porsche 918 and 911R. Not an allocation, only offered to people on Porsche's list. You order the car and select what dealer you want it sent to. The dealer is unable to add an ADM to the car. It is once the cars hit the used market that Porsche no longer has the ability to regulate any markups. Porsche has so many variants that it may not be in place for all cars it builds, but for brands like Ford/Dodge that only have 1-2 halo cars on sale at any given time they could devise a plan.
 

mattlqx

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Somebody mentioned on Facebook the scheme of dealers selling raffle tickets for a few hundred bucks a piece for the opportunity to buy one at MSRP to get around that. Granted, there's nothing preventing any dealer of any make from having done this already on hot cars instead of having a huge ADM and I haven't seen this done yet.
 

DrumReaper

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I call Bs... I just tried to secure an allocation. I was told in front of attorneys that the region of dealers in a southern state all agreed that they would assert a $10k ADM on the Demon and they wouldn't budge and already had their allocation reserved.
 

krt22

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I call Bs... I just tried to secure an allocation. I was told in front of attorneys that the region of dealers in a southern state all agreed that they would assert a $10k ADM on the Demon and they wouldn't budge and already had their allocation reserved.
They all basically agreed then to all charge the same and no one budges to undercut each other, meaning if none of the dealers budge the allocations will be built in a similar time frame so no one loses out, winners would be other regions who dont and those folks get their cars sooner
 

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DrumReaper

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They all basically agreed then to all charge the same and no one budges to undercut each other, meaning if none of the dealers budge the allocations will be built in a similar time frame so no one loses out, winners would be other regions who dont and those folks get their cars sooner
Doesn't matter how you slice it, it doesn't solve the ADM issue but rather puts adm allocations last. So what?

That actually helps the dealer that wants ADM so the car doesn't sit on their lot for months.
 
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Spa2k

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It does help kill the ADM dealers. If they get pushed to the end of production and all 3,000 cars are already sold to Dodge dealers who played by the rules, the ADM dealers won't get any. And as far as the collusion of the southern dealers, all it will take to stop that little bit of price fixing is a quick call to the attorneys general in those states.

Some of you guys have to quit working so hard on figuring out why it won't work and just watch it work. Where the Demons will jump in price is in the used market.
 

DrumReaper

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Hey I'm all good for reporting shady dealers, but no one can stop them, even Dodge.
 

FogcitySF

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Will still allow a separate private market for whose who get the car and flip to the used market. Somehow the greed stops at the dealers?
 

96cobra

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I think this is a good thing, because several years ago ADM's were never seen on Fords and the dealers I dealt with were friendly and wanted my business. Now those same dealers are all greedy a-holes because of all the mark-ups on Raptors, GT350's, and Focus RS's. I despise having to approach any dealer that I have bought many, many cars from that treat me like they're doing me a favor. It's never been more apparent to me that Ford dealerships are some of the worst to deal with now.
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