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Ford CEO says EVs will be sold 100% online with nonnegotiable price

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Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#201

Post by qgin »

paxys wrote: post #39

A lot has been said about the dealership model in the last few years, and the almost universal consensus is that it is an unnecessary and predatory industry and all auto makers should just sell cars directly like Tesla does. That being said, is there any counterpoint to this view? Are there any benefits that dealerships offer today over direct sales? What would we lose if we got rid of every dealership? If there is t…

Seems similar to the franchise model. Local people in local markets find the opportunities and take on the risk while the cost of the arrangement is passed on to the consumer.

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#202

Post by bin_bash »

medler wrote: post #82

This article takes an off-the-cuff comment from the CEO of Ford and reads too much into it IMO. He wasn’t saying dealerships are going away; he was actually saying the opposite. The point he was making was that Ford is going to adopt some of Tesla’s practices while using the dealership network to compete with them. Here’s the quote with more context: “I believe for retail, we have to -- it's kind of like what happene…

Frankly I don't think you're very good at reading executives' words: you have to read through the lines and notice what they're not saying.

Nowhere in that does he say outright where dealers fit into an online, fixed price world. He only makes super vague statements like "dealers will be more specialized."

Reads to me like Jim isn't planning on dealers being around in the future but he's being vague enough to try not pissing the dealers off in the near-term.

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#203

Post by [deleted] »

paxys wrote: post #39

A lot has been said about the dealership model in the last few years, and the almost universal consensus is that it is an unnecessary and predatory industry and all auto makers should just sell cars directly like Tesla does. That being said, is there any counterpoint to this view? Are there any benefits that dealerships offer today over direct sales? What would we lose if we got rid of every dealership? If there is t…

[deleted]

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#204

Post by happyopossum »

beached_whale wrote: post #35
datalopers wrote: post #16

Earlier quoted context omitted.

I think you’re drastically underestimating how immensely popular the Ford F-150 is. Every single person who wants a truck knows about the F-150 and I’d wager the vast majority who may purchase an EV know about the F-150 Lightning or will find out as they start hitting the streets and they see them in parking lots and at stoplights.

Having 220v out the rear to say and looking like a normal truck will help a lot. There are a lot of contractors who buy a lot of trucks and not needing fuel or the trucks or generators(no longer needed0 is a huge win. Plus they check off every single checkbox for a truck, minus the perceieved distance anxiety. They will sell very well

Not disputing that these will sell really well, but you can get the same 220v out the tailgate of an ICE F-150 today, without waiting 2+ years for the privilege.

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#205

Post by sammalloy »

yboris wrote: post #172
sircastor wrote: post #117

Earlier quoted context omitted.

I’ll second this from a privileged position. I own a late model Land Rover, and if I take it down to the dealer to solve something, they treat me very well and put me in a very nice lounge while I wait. It’s a first class experience. I don’t think I’d get as nice attention from a non-luxury dealer though.

I feel like any repair at the dealership costs at least 50% more than if you go to another establishment. Does that ring true to anyone else?

> I feel like any repair at the dealership costs at least 50% more than if you go to another establishment.

It’s entirely dependent on the market and region. Sometimes it is cheaper to go to the dealer depending on make and model. It also depends on where you live and the availability of mechanics and parts.

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#206

Post by throwaway0a5e »

sammalloy wrote: post #196
cbhl wrote: post #183

Earlier quoted context omitted.

I'm under the impression that the service part of the dealership _is_ the profitable part -- the car sales are more-or-less break-even after the monthly sales bonus incentives, which is why the dealer does the two-part "let me check with the guy in the back" and then "now that you've agreed to a price, you can talk to the guy in the back who will play 'good cop', explain things in plain english, and then try to upsel…

> I'm under the impression that the service part of the dealership _is_ the profitable part If you drive a Ford, sure, it needs a lot of service. Which is why I stopped buying Ford. Toyota and Honda don’t need much service, and I don’t see how they are money makers for the dealer. And when you move to EV, you need even less service than before since the is no ICE to maintain.

> Toyota and Honda don’t need much service, and I don’t see how they are money makers for the dealer

Well first off, people like buy that marketing stuff hook line and sinker, so they make more on the sale. Second, pretty much any vehicle that rolls on earths surface is going to need stuff serviced in proportion to how close it is to the ground. For cars this means the dealer can make plenty of money selling brake pads, wheel bearings, suspension bushings, tie rods, and other wear items like that (and the labor to swap them out).

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#207

Post by tomc1985 »

more_corn wrote: post #89
dijonman2 wrote: post #76

Earlier quoted context omitted.

What does that have to do with anything?

Maybe instead of auto manufacturers getting all the profit it’s nice that a local middleman gets rich too?

The world needs fewer middlemen

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#208

Post by happyopossum »

0des wrote: post #125
xen2xen1 wrote: post #7

Earlier quoted context omitted.

From what I've seen of the coverage, that doesn't quite seem true for the F150. It has decades of name recognition built up and lots of buzz going on for it already. The F150 may be the first real ICE>EV mega crossover thst happens.

I believe the Mustang is going all EV soon too, right? yep: https://carbuzz.com/news/ford-mustang-will-go-all-electric-i...

No, not even close.

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#209

Post by avgDev »

alexktz wrote: post #55
zeeb wrote: post #47

I imagine the +$20k "market adjustment" markups on the F-150 lightning (and other EV's and hybrids) [0] by dealerships probably factored into this decision. [0]: https://www.washingtonpost.com/business/2022/02/12/ford-gm-d...

It 100% factored into my decision to cancel my pre-order for a Lightning. The dealer said to me via email in December 2021: The latest communication is that order banks will open in January. Ford will be sending invitations to build / order in waves as to keep up with the demand. The invitations will be prioritized based on reservation time stamps. Your reservation is number 138 at our location. I have no way to trac…

I'm interested in a Mach-e......that was until I saw the markup the dealers wanted.

I'm done with dealers. I recently helped purchase a car for my father after his was totaled. I talked to dealer and he promised that they are selling at MSRP. Next morning I call him and he wants above MSRP unless I RESERVE NOW. I told him I'm no longer interested in doing business with him and went elsewhere.

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#210

Post by chemmail »

serf wrote: post #85
paxys wrote: post #39

A lot has been said about the dealership model in the last few years, and the almost universal consensus is that it is an unnecessary and predatory industry and all auto makers should just sell cars directly like Tesla does. That being said, is there any counterpoint to this view? Are there any benefits that dealerships offer today over direct sales? What would we lose if we got rid of every dealership? If there is t…

>That being said, is there any counterpoint to this view? Are there any benefits that dealerships offer today over direct sales? the only thing I can think to say is that they are still a convenient repair facility, Tesla is fairly notorious for slow turn-around for repair.[0] I think a nice middle-ground would be the conversion of dealerships into showrooms/receiving-centers/repair facilities -- oust the sales porti…

There is virtually none. My brother and my best friend sold cars and jumps around. Now they are at a no haggle Toyota dealership that basically sells at MSRP. It is generally much better for everyone involved. Just make it like a Tesla experience, throw you the keys, if you want it here is the prices. Don't have to deal with BS anywhere.

The "dealership" model needs to be killed off. It's probably just a few dozen moguls that make money off of these dealerships and spend most of their money lobbying.

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