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      02-08-2022, 10:49 AM   #1
wesleyan92
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Good for GM and Ford

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Behind a paywall so I am sorry, but this is a good article:

https://www.wsj.com/articles/ford-gm...hare_permalink

- Companies know who the Dealers are; around 10% of the network
- There will be consequences; including reduction in future allocation
- Edmunds says 82% of sales are higher than MSRP - WOW
- No surprise, National Automobile Dealers Association pushing back
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      02-08-2022, 03:39 PM   #2
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Dealers must love the current state of the automotive market. Not only are they able to get price realization like they've never seen before, but they are saving nearly all the financing costs that were associated with new inventory.

The optimist in me hopes that this is the beginning of the permanent transition to build to order being the norm and that the independent dealership model will die . The realist in me knows that the OEMs are only too happy to pass off the risk of exposure to a cyclical market and working capital requirements to a dealer network.

I ordered a Tesla Model Y Performance to replace my wife's Q7 back in November and it was the best car buying experience I've ever had. Say what you want about their products, but I have great admiration for their approach to product portfolio and lifecycle management. The legacy automakers can learn a lot from them where it comes to simplifying and shortening the value stream.
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      02-08-2022, 05:04 PM   #3
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Quote:
Originally Posted by wesleyan92 View Post
Behind a paywall so I am sorry, but this is a good article:

https://www.wsj.com/articles/ford-gm...hare_permalink

- Companies know who the Dealers are; around 10% of the network
- There will be consequences; including reduction in future allocation
- Edmunds says 82% of sales are higher than MSRP - WOW
- No surprise, National Automobile Dealers Association pushing back
I'm glad they're making note of this. I went to buy a new Raptor this past October, and was fine with paying sticker given the market. The dealer tried to sneak by a $20k markup on me. I laughed in their faces and walked out. Greedy fucking bastards. Hope Ford shits on them, hard.
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