Some hope with ADM from Ford

[Brocked]

Some car dealers are taking advantage of lean inventories as a result of the semiconductor shortage by charging well above sticker price -- and Ford Motor Co.’s chief executive officer isn’t happy about it.

“We have very good intelligence of who they are and their future allocation of product will be directly impacted because of that policy,” CEO Jim Farley said Thursday on a conference call with analysts. “We have about 10% of our dealers last year in the supply constrained environment that we’re in charging above MSRP to the best of our knowledge,” he said, referring to the manufacturer’s suggested retail price.

https://www.bloomberg.com/news/arti...ys-dealers-who-gouge-could-get-fewer-vehicles

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[SCandTC]

He can say whatever he wants but it won’t change anything.

Also understand the ‘S’

 

[cclark20]

Only 10% of dealers selling over MSRP is BS.

Well I guess that $5K Appearance Package for paint sealant and seat protectant technically isn’t counted as an ADM over MSRP.

Ford isn’t going to do anything It’s just more damage control. They allow dealers to add ADM on the online Lightning order program. It doesn’t get much more obvious that they don‘t care than that.

 

[jfried]

I have to question whether Ford really wants to eliminate over MSRP pricing... nothing that they've done on the "hottest" vehicles seems to indicate anything to that effect.

Dealerships need to make money. Without making money, they don't build these and maintain these massive showrooms that reflect positively and convey local confidence to the Ford Brand.

When Ford isn't shipping them vehicles, they have little choice but to charge ADMs on the vehicles they're able to get.

Ultimately, if Ford was serious about eliminating ADMs, they'd have eliminated the "allocation" process with lightnings and broncos all together -- just let reservation holders order the vehicle through a dealer of their choosing.

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