Ford CEO Wants Vehicles Sold Online Only With Non-Negotiable Pricing

He spoke at length about consolidation and change in the auto industry at Bernstein's 38th Annual Strategic Decisions Conference.

Jim Farley

Christopher Smith

By: Christopher Smith

Jun 2, 2022 at 12:57pm ET

Add Motor1.com as a preferred source in Google

Comment

Ford CEO Jim Farley had much to say at the Bernstein's 38th Annual Strategic Decisions Conference, which took place on June 1. He spoke at length about evolution and consolidation in the auto industry on virtually every level, which includes dealerships. From his perspective, he sees a shift to online vehicle sales with non-negotiable prices and remote deliveries.

That's not to say dealerships would disappear completely. Towards the end of the hour-long conversation, Farley likens Ford's current position to that of retail company Target, which added an e-commerce aspect to its physical locations to better compete with Amazon.

Ford F-150

shop now

save over $3,400 on average off MSRP* on a new Ford F-150

shop now

"It's exactly what we have to do on the retail side," said Farley. "We've got to go to non-negotiated price. We've got to go 100 percent online. The vehicle, there is no inventory so it goes directly to the customer, 100 percent remote pickup and delivery."

While Farley doesn't directly reference Tesla during this part of the discussion, it's largely implied that he sees the California-based EV company as the competition in this manner. Tesla doesn't operate with a traditional dealership network, but Farley views Ford's future dealership network as specialized with multiple tiers, providing retail customers in-person, long-term support.

Automakers At Odds With Dealerships:

GM Warns Dealers About High Markups, Deposits Ahead Of Big Launches

Dealership Profits Are At Record Levels Through Q1 2022: Report

What do you think?

View

Comments

"But then we have this opportunity to use our physical presence, outperform [the competition]," he said. "Like, I believe some Mach-E and Lightning customers would love to have a Mustang for the weekend. Maybe they want a Super Duty. [Ford] can do that, [the competition] can't."

Dealerships have certainly come under scrutiny in the last year or so amid dwindling new-vehicle stocks. Selling prices above the MSRP have become commonplace, with some higher-demand models seeing significant markups. Some dealerships have also come under fire for allegedly altering signed lease contracts, adding additional fees, or refusing to let leaseholders buy out the car. Infiniti issued a warning to dealerships over potential improper conduct regarding lease contracts, while Ford and General Motors issued general warnings about excessive price markups that could harm automaker relationships with customers.

Source: Seeking Alpha via Detroit Free Press

We want your opinion!

What would you like to see on Motor1.com?

Take our 3 minute survey.

- The Motor1.com Team

Share this Story

GO TO COMMENTS

(

)

Got a tip for us? Email: tips@motor1.com

View all comments ( )

Popular

The Rotary Engine Should Be Everywhere. Why Isn't It?

Honda's Mitsubishi-Based Truck Is Official, Coming In 2028

Mercedes-AMG Is Developing A New C63, And There Could Be Two Models

Volkswagen Wanted An Electric Bugatti Tourbillon, But Mate Rimac Pushed For A V16 Engine

Ferrari's Luce EV Costs Way More Than Its V12 Purosangue SUV