Some Ford Bronco reservations could be delayed by several years
The Ford Bronco’s situation, despite fixing production issues and releasing the trucks, is still complicated. Dealers and consumers continue to brand and resell trucks, at least one unit came with a factory build tool still connected, and despite some pre-order customers getting their Broncos at MSRP, many holders of early booking are reportedly still stuck in Purgatory with their orders in limbo.
It is a problem that a Ford dealership sought to solve and, as a result, consumers would have flocked to it. The particular franchise has requested to remain anonymous to avoid retaliation from the Dearborn automaker itself, but what it has done is both smart and, so far, effective. She was able to deliver trucks to holders of orders and reservations below the invoice, a practice she considered risky, but which would eventually pay off. Everything is about to change, however, as reputable Bronco forums claim that Ford’s Broncos award method has been changed, and a dealership employee says the move will hurt those who want the most most. newer and the best 4×4 from Ford.
The situation started when the Bronco was first unveiled in July 2020. The Blue Oval, taking inspiration from a more traditional dealer sales model, said that if you book a Bronco and convert that reservation into an order , you would have priority.
âFord said, hey, we’re going to complete all reservations and pre-orders before we build any stock units,â said an employee at the Ford dealership in question. The reader. In a nutshell, stock for dealerships would come second, and enthusiasts – the people who wanted a Bronco ASAP – would come first. To support this notion, Ford unveiled an allocation model that rewards a higher booking rate. It turned the gears of this dealership, one dealership employee told us.
According to the information provided to The reader by the dealership employee and supported by posts on the Bronco6G forums, Ford would have awarded the Broncos as such: 25% of the award was decided by the dealership’s share in domestic sales, 25% was decided by market area responsibility (how many potential customers the dealership served) and, most importantly, 50% was based on a snapshot of a dealer’s total reservation holder count. That snapshot was taken in September when the dealership in question had about 600 reservations to fill, according to the dealership. (For a certain perspective, Ford sold 3,396 Broncos in SeptemberSo 600 trucks is a big number.) In theory, if Ford kept this enthusiast-friendly allocation model, that meant people who booked or ordered Broncos from the dealership would get them sooner. And from the dealership’s perspective, more bookings meant more allocations, and more allocations meant more sales.
In a certain context, the share of the franchise in question in national sales and its market area responsibility is, according to him, relatively low, we therefore understand why he wanted to boost his reservations with the previous allocation model. As such, it has decided to attract as many reservations and orders as possible. One element of that was promising that his customer-ordered Broncos would be sold for less than the invoice. It’s not just a good thing to do, it’s a good business. The dealer would eventually sell more units than its competitors, its domestic market share would increase, and its Broncos allocation would be higher for subsequent years.
Now that the model has changed, the dealership – as well as its customers – are in a tight spot. Importantly, that 50 percent of the reservation-based allowance has been cut in half to just 25 percent. The remaining three quarters would also have changed.
“[The remaining] 50% is the share of domestic sales and 25% is the share of Bronco Sport sales, âthe dealership employee told us. This means that all of a sudden, 75% of his allowances are much more difficult to grasp. a small dealership, its national sales are considerably lower than those of franchises located, for example, in a large metropolitan area. The Bronco Sport detail also throws a wrench into things. Ford sold more Bronco Sports in September than the Escape it is based on. at least in part to a better inventory situation for the Bronco based on the company’s “C2” platform, as a Ford representative told us last week. the allocation was perhaps the easiest thing to chip away at in order to facilitate this change in strategy.
This change in strategy is obviously undermined, however. The dealership in question reportedly had 600 pre-orders and reservations in September. Today he brings in over 1,000 and his allowances have seriously declined. Even if it receives hundreds of Broncos a year (it would have had less than a dozen in the first month of AM2022), it could still be a long time before reservation holders get their trucks. “We are going to have 120 to 200 [Broncos] this year, and last year in six months, we had more than that, âthe dealership employee told us. âIn my opinion, they are reverting to the traditional attribution system at the expense of the consumer.
To be clear, this change will likely affect some dealers more than others. Franchises that have fewer bookings, greater overall sales volume, and sell more Bronco Sports have the potential to get more inventory, while those who have found the enthusiast-driven booking and ordering model more appealing by will probably suffer; dealers like the one we spoke to. âWe’re always going to get more than we deserve, a ton of allowanceâ¦ but you’re telling our customers you’re going to have to wait potentially years because they picked the wrong dealer,â the employee said.
For the record, Ford CEO Jim Farley has been a supporter of this consumer promise, at least as a concept. Talk to Reuters In August, the executive said, “We are very committed to moving to an order-based system and keeping inventory at a 50-60 day supply.” As such, Ford used a reservation system similar to that of the Bronco for the F-150 Lightning. This shift in strategy for Ford’s ultra-popular 4×4, however, poses a few questions for those who want to be the first in an electric F-150.
And that brings us back to what’s going on with this dealership and how the consumer potentially suffers from a possible changed sales strategy. Remember; the reservation holders that this franchise now represents wanted to do business with them in the first place due to shady actions from other dealerships and a lack of effective communication from Ford.
It shouldn’t be said, but it’s not the consumer’s fault for wanting to cooperate with a transparent dealer who offers a reduced price. If the franchise actually only gets 200 Broncos a year, it could take several years before all of the orders they’ve received are filled. In an attempt to get their vehicle earlier, these customers are effectively punished.
We have reached out to Ford for comment on its revised allocation strategy, but have yet to hear back at the time of posting.
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