Ford to push dealer allocations

22OBX

Mar 13, 2022

Another breaking article from AN from the NADA convention going on this weekend.

I believe this to mean allocation for dealer stock orders. They will continue to focus on retail orders which is what we want. Constraints are real.

Company says 37 suppliers failed to provide parts as scheduled; Ford forecasts 1.66M sales in 2022 as dealer inventories suffer.

March 12, 2022 06:55 PM
UPDATED 9 HOURS AGO
MICHAEL MARTINEZ

LAS VEGAS — Ford Motor Co., beset by ongoing production woes, told dealers on Saturday it was pushing back allocations and that wholesale deliveries will be lighter until the end of May, although it continues to produce vehicles and fill customer orders.

Ford dealers who attended a make meeting told Automotive News they did not expect new stock allocations until the end of May due to production cuts, although Ford spokesman Said Deep said the company continues “building for both retail and stock.” That means new-car showrooms that have been nearly empty for months will remain so during what is typically a healthy spring selling season for the industry……

https://www.autonews.com/nada/ford-...late-may-100000-units-lost-suppliers-struggle

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Mar 13, 2022

Not good. Dealers have to make money.
For those that are still waiting, it looks like your Bronco will be coming. But with fewer potential sales the money has to come from somewhere. Either your dealership is making enough money in their service department or they will have to add ADMs to pay their people.
What a mess.

Rydfree

Mar 13, 2022

TitsLaRue
Not good. Dealers have to make money.
For those that are still waiting, it looks like your Bronco will be coming. But with fewer potential sales the money has to come from somewhere. Either your dealership is making enough money in their service department or they will have to add ADMs to pay their people.
What a mess.

Dealers make the vast majority of their money from the service department. Profits on new vehicles has traditionally provided very little profit. For years, dealers sold with slim profit margins on new vehicles with the discounts offered. Much larger profits come from the used vehicles they sell. Walk into any dealership on any given day at any given time and you'll see every bay in the service area full. The service area is a money printing machine. Worry not, the dealerships are selling every single new vehicle before it hits the lot and the service bay is booming. Dealers are making record profits.

Mar 13, 2022

I dont see this helping much as the production schedule has been scheduled through early May already. Now if they say they are removing ALL dealer orders and adding customer orders instead that would be a good change.

WT HOSS 4dr 2.7 MIC Lux Tow
7/16/20 Res -- 1/22/21, 10/8/21 Order -- 3/24/22 VIN -- 5/9/22, 5/23/22, 5/16/22, 6/6/22, 6/17/22 Build 7/15/22 Delivered

Jakob1972

Mar 13, 2022

Brsox
Dealers make the vast majority of their money from the service department. Profits on new vehicles has traditionally provided very little profit. For years, dealers sold with slim profit margins on new vehicles with the discounts offered. Much larger profits come from the used vehicles they sell. Walk into any dealership on any given day at any given time and you'll see every bay in the service area full. The service area is a money printing machine. Worry not, the dealerships are selling every single new vehicle before it hits the lot and the service bay is booming. Dealers are making record profits.

I agree with your post 100 percent.
The only thing missing is the reality that the sales people are 100 percent commission. They make a little on the back end for service contracts and add ons, but unless something has changed, they need these sales.
Whether you like them or not, it is a tough line of business and I respect people that get up everyday and have to hustle for a paycheck.
Unless the dealership is subsidizing the sales side from service profits, the money has to come from somewhere. ADMs and or reduction in headcount is unfortunately part of the new normal.

Jakob1972

Mar 13, 2022

Dealer "allocations" should apply only to vehicles the dealer orders for their own retail stock, NOT TO CUSTOMER PLACED ORDERS.

ResidualGenius, Jakob1972

Mar 13, 2022

The few dealerships I have visited have a few new cars but tons of used cars. They even have the used cars in the showroom. They are selling 3-4 year old vehicles above MSRP of brand new vehicles, I don’t think they are hurting too much they are pivoting from new car dealerships where the manufacturer forces them to keep X number of vehicles in stock to a used car lots that sell a few new stock and customers ordered vehicles. Kinda how it was way back in the day.

Bronco Nation 1100. Everglades, Desert Sand
Res: 7/30/20 ordered 1/22/21 reorder 10/15/21 changed to Everglades 3/9/22 schedule 8/29/22 bumped to 9/5; 9/7/22 blend, 9/9 Mods, 9/26/22 completed, 10/7 shipped, 11/3/22 delivery

Mar 13, 2022

EBG
Dealer "allocations" should apply only to vehicles the dealer orders for their own retail stock, NOT TO CUSTOMER PLACED ORDERS.

Well, now that would make sense, so now we know why FMC doesn't do that

WT HOSS 4dr 2.7 MIC Lux Tow
7/16/20 Res -- 1/22/21, 10/8/21 Order -- 3/24/22 VIN -- 5/9/22, 5/23/22, 5/16/22, 6/6/22, 6/17/22 Build 7/15/22 Delivered

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