Ford CEO Farley cracking down hard on $3.6 billion dealer markups

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This won’t change anything. Ford isn’t the first auto maker to attempt to restrict allocations. Ultimately doesn’t work.

Mark ups are here to stay. Vote with your wallets, don’t rush to buy the guest new model year of a be model. Just wait it out, but used, or offer less.

This “gotta have it no matter the cost” attitude is what got us here in the first place. It’s the consumer’s fault.

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Everyone loves to complain about markups (but outside of certain circumstances) but the best way to show dealers that they don’t work is by stop paying them…

I think its mostly a PR move for Ford.

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100% it’s just posturing. If you don’t have enough cars for your dealers you have to expect them to make up profit somewhere.

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What are they going to do, send them a sternly worded letter and wag their finger?

No No No Finger Wag GIF by reactionseditor

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What a joke…If ford really cared for consumers they wouldn’t make it impossible to break their leases.

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Cut allocations like gm said they’re gonna do for dealers that mark up the z06. Like that will happen :joy:

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Lindsey Graham loves those letters. Maybe he can show them.

No one will probably agree, but the first auto maker to possibly put on a cap on how much a dealer can sell above MSRP or place crazy insane incentives to entice buyers will gain gigantic market share. Probably an idea that most will say isn’t possible or an idea that just sounds crazy.

Right now consumers are still buying cars above MSRP by the thousands of dollars and in some cases 10s of thousands of dollars. This will ultimately come to an end once we see a shift in the overall economy and a possible recession on the horizon. Fed is raising rates and consumers will start to feel the pinch once all this free money entering the economy comes to a complete halt. I don’t think this selling above msrp and limited stock on dealer lots is going to last as some people believe, some believe its here to stay… It can’t. The trend will break and normalcy will once again take place. Just a simple matter of time.

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It’s funny that you fail to mention the fact that there is no inventory and continue to blame some boogeyman and the Fed.

Just a simple matter of time.

Yea people have been saying that here since mid 2021 and here we are.

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Exactly. F is gonna do fuck all when they can’t even keep a cheap hybrid truck in stock.

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While we will eventually get back to leases and car sales that resembles normal, I do not think we will ever get down to Pre-Covid level pricing. There will be an inherent amount built in that accounts for all the shit we just went through. It happened with gas in the 70’s. In that event, the prices never came back down.

I don’t think Farley, or Ford, or whoever the fuck, :sweat_smile: actually gets any say in price. This is simple, supply and demand. He answered his own threat. If he blocks dealerships from markup, they won’t order vehicles regardless of allotment, because they cannot make enough to keep their operations running. Think about it… Simple supply and demand dictates the price.

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It happened last time gas went to $4-5. Prices had temp increases that became permanent. Or packaging shunk as a part of stealth inflation. The consumer will always pay, corporation won’t lose money or they won’t do business. Just how it works.

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There is a solution no one is considering here… We kill the dealerships and remove the middle man.

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This country exists on middle men. How many jobs do you expect to kill? Automation will do it all in the next 10 years anyway.

You would think realtors would be obsolete by now, yet their lobby is stronger then ever.

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That’ll happen as soon as manufacturing and emphasis on skilled trades returns as a priority.

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Yeah, so guys like Musk can literally pocket everything?

Reminds me of the Rick and Morty bit below. :rofl:

Slavery with extra steps

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With what inventory?

What brand is demand constrained right now?

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All sounds good in theory except OEMs are even worse at running dealerships than they are at building cars.

And the latter is something they’ve collectively spent ~500 years on.

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