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

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421–430 of 612 posts

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

#421

Earlier quoted context omitted.

Tesla's wait times could be because they are scaling up and part delays.

Tesla's wait times are because every part that sits on a shelf for warranty/service/accident repairs is a part that can't go on a vehicle coming off the assembly line, and we all know that Tesla / Elon has a raging hard on for "deliveries, deliveries, deliveries". "Because they're scaling up". They've been making vehicles for 14 years, how much more time do they get to realize they should have a parts network?

> Tesla's wait times are because every part that sits on a shelf for warranty/service/accident repairs is a part that can't go on a vehicle coming off the assembly line, and we all know that Tesla / Elon has a raging hard on for "deliveries, deliveries, deliveries".

The Soviet Union's automotive industry operated in this exact manner. It's why, when by some miracle you got your hands on a car, sourcing replacement parts was nigh-impossible.

> ... how much more time do they get to realize they should have a parts network?

It took them ~60 years, give or take.

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

#422

Earlier quoted context omitted.

But it sounds like the local middleman is getting rich at the expense of fellow-locals

I'm glad if I'm going to pay someone for not doing anything it's a local person so I can see how much my money is helping them at the country club I can't get into.

I mean, I'm not really trying to defend them. Just saying that having the wealth local gives a better chance of taxing it locally.

I'm game for how this week help local folks, though. My gut is it will just be fewer rich people at the very top of these companies.

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

#423
post #50

Earlier quoted context omitted.

Local profit? That is, in many towns, my understanding is that the local dealerships are relatively well off. Which implies that a bit more of the money is kept local to where the cars are being sold. I'm guessing this is less true today than in years past.

Why is "local profit" is assumed to be a positive thing? It seems to me that if we were to prove keeping money in certain places to be a benefit to society as a whole there would be much more effective and direct ways of making it happen

Local profit implies locally taxed income.

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

#424
I’d love that. I hate having to endure the process of making decisions based on partial information given in unstructured form by an often unreliable car salesperson.

That’s my day job, thank you. I’m paid for bringing out actual actionable intelligence from such things and I’d like my personal life to be easier.

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

#425
post #143

Earlier quoted context omitted.

Just a note, If you want to go sit in a Tesla or test drive one, you can still do that despite a complete lack of dealerships. In my experience, a Tesla is the only showroom experience where there was 0 pressure, and no-one trying to get my info or photocopy my driver license just to see the inside of a car. A lack of dealerships does not mean that there are no showrooms or test drives. There's nothing stopping Ford,…

The thing is Tesla is a luxury car for rich people - upper middle class and above. This means you only need a limited number of show rooms - where most rich people live - and rich people are also pretty mobile, so they can come to you. Scaling the same for car with more broad appeal may be hard to manage for the company, and there's no incentive for the third party to do it if they can't sell. Honda sells 4x more car…

The Ford electric pickup costs more than a Model 3 Tesla.

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

#426
post #417
post #369

Earlier quoted context omitted.

> Maybe going direct is the secret plan, but I don’t see how they get there. Yeah, the dealership and the state level dealership associations aren't going to go out of business without some good fight. Even though I personally don't like the markup to be paid at the dealerships, but they exist for some good reasons: educate the consumers, financing, DMV paperwork and most importantly service your vehicles. EVs need m…

> educate the consumers, financing, DMV paperwork and most importantly service your vehicles. I bought a new car direct and I was educated, my credit union was better than the manufacturer's financing offer, the manufacturer did DMV paperwork, and the manufacturer does service. 9 years ago. What am I missing?

> What am I missing?

A useless middleman.

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

#427
post #157

Earlier quoted context omitted.

Selling online without negotiated price is a big change. That should make the dealerships really uncomfortable in the long run… he's kind of saying "oh the dealerships could rent out Mustangs" but is that actually realistic?

Diplomacy is the art of saying “good dog” until you make it to the rock. Ford is learning what Tesla knew from the start: dealership interests aren’t aligned with EV manufacturers. There’s very little service revenue, and dealers are incentivized to add “market adjustments” to vehicles (which Ford dealers have been doing) creating a poor customer experience. Ford has existing dealerships and is going to have a heck o…

Electric personal mobility devices are now more popular than mechanical bycicles and motorcycles.

Electric devices require significantly more servicing than mechanical ones. On the flip side, people seem content to treat electric devices like they're disposable and just buy a new one every year.

I don't think this dynamic won't hold for larger-sized EV's.

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

#428
post #212
post #134

Earlier quoted context omitted.

Dealerships are major job providers in small towns and provide some of the better jobs. Salespeople, loan officers, etc. Think replacing local grocery stores with Walmart. Low end jobs stay, high end jobs go away. Further hurts small towns. My guess is that a good chunk of the efficiencies from this model will go to Ford corporate so it’s a wealth transfer from small towns to big co managers / stockholders.

Semi-counterpoint: Walmart pays hourly workers more than any of the mom-and-pop retail in my hometown.

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

#429
post #155

Earlier quoted context omitted.

Why would a fixed, online price end up being higher on average than what someone paid after haggling at a dealership. If anything, it should be lower because of (1) Reduced overhead, and (2) It is more closer to a free-market due to more transparency. Yes, there might be outliers where an extremely good haggler paid less, but that would be outweighed by a novice who paid way more, and the average has to be higher bec…

Why would Ford (or any manufacturer) offer cars on their website for cheaper than MSRP? What is their incentive? MSRP is a suggested retail price, which is based off the manufacturer's costs + what they believe is a reasonable margin for their vendor (dealership in this case). Ford cutting out the middle man means they can offer cars at the same exact price (MSRP in this case), but not have all the expenses dealershi…

Car manufacturers have a history of being pissed off at dealers for their markups and giving priority to dealers who sell under MSRP https://www.cnet.com/roadshow/news/heres-how-dodge-plans-to-...

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

#430
In general terms:

- I have nothing against such model IF I can test-drive for free the vehicle, so if some vendor bring the vehicle to my home, 24h test, they'll get back no question asked, totally free;

- I understand big car industry want to use modern surveillance capitalism for target sells, not much an issue since we already know how this system work;

- IF they also provide on-side under-warranty service... They buy back used vehicles with someone who came and evaluate locally... It might be even good IMVHO.

It's clear the society at a certain level have shifted back to a direct producer-to-customer model, witch might be perfectly good IF is general supported by standard means, or might be a way to exploit consumers and intermediate OEMs like happen in many cases (cfr. Amazon, Wallmart etc to cite USA examples). The whole issue is probably a whole society comprehension of such model and I doubt there is such understatement without people training...

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