📊 2022 Bronco Allocations Formula Per Dealer

[Carolina Jim]

There once was a little frog who lived at the bottom of a well. All day long he looked up and admired the beautiful blue sky...but since blue was the only color he could see - he never realized there were other colors in the world.

Ford has their head so far up their ass, they have Zero connection/awareness/empathy for the end customer

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[sjp]

Would you be willing to move your order from dealer "A" who's new allocation put you out of '22 to dealer "B" who can get you built but charges 2K more than dealer A? I think the answer for a lot of people at this point would be, yes.

My answer is no. Emphatically, no. As in no f'ing way. Other people can do whatever they want.

The toyota 4 runner is looking better and better every day...

Amen.

 

[Bronck]

Hang in there

 

[Blue's B6G]

There are some good dealers out there doing good things.

Oh for sure, thanks to this forum we’re able to find those dealers. Someone is always going to have to “sell” Fords at MSRP, maybe they should just ask B6G to select dealers in a poll. Makes sense to me.

 

[GoTigersGoBronco]

Amen. And why should a small dealer be punished for attracting customers? It's not a free market when Ford uses it's stature to favor dealers.

In a free market, Ford would have already terminated many of these smaller dealerships. It’s not secret they have way too many.

 

[BuzzyBud]

The reason I didn't post this yesterday is due to the huge number of unknowns. On it's face it appears small dealers that got reservation/orders higher than their normal sales volume, will get the short end of the stick. Like @Zach@Granger said and I'm in complete agreement with, is Ford is trying to give more share back to the larger dealers. Practically speaking, customers are going to be the ones that win and lose.

Some issues I see if they stay with this formula. Customers at smaller dealers might see a longer wait time due to a decrease in allocations. If Ford allows people to move unscheduled orders, people will play the, "who has allocation and where am I in relation" game. Obviously, if the big guys get more allocation one can assume people will move to get built sooner but might be the next victims of ADM'ing. You want it sooner? You'll have to pay.

Small and medium dealers will completely lose the drive to push product if they know the metro store 40 miles away has all the product and allocation further increasing the divide with the sell to earn allocation formula.

When allocation was first announced the average was about 30% of your reservation/orders. Ford gave us that number but told us how it was figured. So how could all dealers get about 30%? Further, I have no way of making a calculation using my numbers in this formula to say if my '22 allocation will be more or less than '21. I've sold all of the sports we've gotten, our current name match is 100%. My assumption is we will get at least 50% of the original orders still waiting. None, and I mean none, of this matters if Ford still can't run wide open due to semi conductors, other commodities, shutdowns or other manufacturing problems.

Maths time...If I have 45 round 1 orders left and get the same allocation or 17 it will take about 2.6 years to clean all of them up. While we figure that was only half of a year of production, double it to 34 that's still over a year to satisfy those still in the system. Assume commodity issues don't loosen up much and they can make 8,000/mo reliably. How are any closer to filling all remaining original orders? Right, we aren't. So why change the model now? IMO, the big dealers threw a fit about not getting the lions share of vehicles by default so Ford came up with an "equitable" formula that just so happens to only benefit the huge metro guys.

Customers drove the demand, not dealers. This model punishes customers that wanted to do business with who they thought would best take care of them. So now they come up with this crap to tell aggressive dealers, something Ford has pushed us for decades to do, now have their customers punished because why? Oh yea, corporate politics.

I wouldn't do anything until Ford gives us our numbers whenever that will be. If it's bad I totally support customers contacting Ford and telling them how they feel. They can't punish a customer or blame me for not selling product we can't get because they can't make or in a smaller market where the volume isn't there.

The way I look at it, customers always have options. As @flip recommends, wait to see the dealer allocation figures once they are released before cancelling the reservation. I assume that will happen in December.

I am an early 7/14 reservation holder for a Badlands 2-door and will not compromise my decision. Like many potential owners, the Ford dealers in my area all embrace ADMs. I chose a small dealer not in my local area who was willing to commit to no ADM.

Although this is a changing environment, I prefer to convert my MY21 order to a MY22 with a priority of “99”. If my dealer discovers in December more allocations, he knows where to find me. In all honesty, I cannot and will not devote more time and energy attempting to understand how the distribution of Broncos is changing. The MY23 environment may be better. If not, I will shop Toyota. Not that any of this matters to Ford, but I feel better.

 

[Gamecock]

The reason I didn't post this yesterday is due to the huge number of unknowns. On it's face it appears small dealers that got reservation/orders higher than their normal sales volume, will get the short end of the stick. Like @Zach@Granger said and I'm in complete agreement with, is Ford is trying to give more share back to the larger dealers. Practically speaking, customers are going to be the ones that win and lose.

Some issues I see if they stay with this formula. Customers at smaller dealers might see a longer wait time due to a decrease in allocations. If Ford allows people to move unscheduled orders, people will play the, "who has allocation and where am I in relation" game. Obviously, if the big guys get more allocation one can assume people will move to get built sooner but might be the next victims of ADM'ing. You want it sooner? You'll have to pay.

Small and medium dealers will completely lose the drive to push product if they know the metro store 40 miles away has all the product and allocation further increasing the divide with the sell to earn allocation formula.

When allocation was first announced the average was about 30% of your reservation/orders. Ford gave us that number but told us how it was figured. So how could all dealers get about 30%? Further, I have no way of making a calculation using my numbers in this formula to say if my '22 allocation will be more or less than '21. I've sold all of the sports we've gotten, our current name match is 100%. My assumption is we will get at least 50% of the original orders still waiting. None, and I mean none, of this matters if Ford still can't run wide open due to semi conductors, other commodities, shutdowns or other manufacturing problems.

Maths time...If I have 45 round 1 orders left and get the same allocation or 17 it will take about 2.6 years to clean all of them up. While we figure that was only half of a year of production, double it to 34 that's still over a year to satisfy those still in the system. Assume commodity issues don't loosen up much and they can make 8,000/mo reliably. How are any closer to filling all remaining original orders? Right, we aren't. So why change the model now? IMO, the big dealers threw a fit about not getting the lions share of vehicles by default so Ford came up with an "equitable" formula that just so happens to only benefit the huge metro guys.

Customers drove the demand, not dealers. This model punishes customers that wanted to do business with who they thought would best take care of them. So now they come up with this crap to tell aggressive dealers, something Ford has pushed us for decades to do, now have their customers punished because why? Oh yea, corporate politics.

I wouldn't do anything until Ford gives us our numbers whenever that will be. If it's bad I totally support customers contacting Ford and telling them how they feel. They can't punish a customer or blame me for not selling product we can't get because they can't make or in a smaller market where the volume isn't there.

This is great insight. The net of this will be that big metro dealers will fill all of their reservation orders AND will be getting hundreds of stock Broncos in 2022....and other dealers will have many early reservation holders that will not get a Bronco at all. The 2,500 small and mid-size dealers need to revolt over this....since @Ford Motor Company doesn't give a crap about reservation holders and what they think. I wouldn't be surprised if more stock units or new orders are sold in 22 than reservation orders filled, becasue this schews it so badly in the favor of big dealers over reservation holders and smaller dealers. This one took some serious thought to ensure that dealers who worked for orders don't get to fill them.

 

[MorgansRun]

At last Ford circled the problem. (Might be an old joke, but I just saw it on a video somewhere.)

 

[Rahkmalla]

Yep the silver lining - every month delay of Bronco, provides more time fixing up my Jeep TJ, and closer instead to a possible Nissan Z! And thankfully - Nissan is not taking early reservations for the Z, so I won't have to hear the phrase "reservation time stamp", lol.

I just keep being reminded that a 2022 Tacoma TRD OffRoad 6speed manual shortbed tech package in Lunar Rock is near as makes no difference the same price as what I expect my base mansquatch build to be.

 

[TXRancher]

My small town Ford Dealer has 10 new vehicles at the moment, when they usually have closer to 60. The initial allotment was 9 Broncos, 3 of which got to the dealer as of last week. I don't know how many Bronco Sports all of last year but it wasn't many. Its a screw job of epic proportions.

 

[Bronco wannabe]

I think I've posted this stat before, but if not, here it is again. The top 100 dealers in the country sell about 25% of all new Fords yearly. That leaves the other 2900 to sell 75%. Ford listens to the big guys. They didn't magically just get big by being a-holes, gouging customers, getting free allocation for no reason, etc....they all have millions and millions of dollars invested in their facilities, their employees, service, parts, etc....all to take care of Ford customers.

I'm not taking sides of anyone here. Dealers played by the rules given, albeit a different set of rules never given to dealers before, and this is where we ended up. I wish they had just left the model alone and let the market take care of pricing like it always has.

 

[vrtical]

I need to find a new avatar to reflect on what I think.

 

[Bdockins]

The toyota 4 runner is looking better and better every day...

2024 it will. Until then it’s just a 2010 piece.

 

[XCR440]

Not reading through 12 pages of complaints, but I haven't gotten official word of this from Ford yet, at this weeks meeting they said details would come next week, but I believe this formula to be correct.

This is also what we were told last fall, when Bronco Sport wasn't thought to be the seller it turned out to be they told us that selling Bronco Sports would get you Broncos in 22, so now that looks to be true. Using 21 allocation will also get those that got more than their share for 21 extra units. Those complaining that only the mega dealers are gaining by this have never seen a regular new launch where the sales volume is the only thing used. Small/midsize dealers are coming out better than normal on Bronco, and those extra allocations are coming at the expense of the bigger dealers.

Yes bigger dealers are getting more, but they sell more so thats the way it should be, yes I understand that many think its not fair since they might not get theirs quickly due to allocation, yet if they spread it even more to small/mid dealer, then orders at big dealer would be in slowed down. There has to be some sort of formula to make it fair. This isn't perfect, but its 100x better than what I've been through in the past (we got majorly screwed on Ranger), yes those few dealers that did fire sales on Bronco might have issues, but I'd bet the rest of the dealer body will get customers with same reservation times their orders in similar times big or small dealer.

Probably the biggest negative for the consumer is that since no extra allocations for reservations/orders (right now, Ford has been allocating extra for retails on most other lines so maybe for 23 if Bronco catches up it'll go this route as well), I look for more ADM pricing even on orders instead of just on the lot.

 

[BadSquatch22]

All I can say is that If my MY 2021 order gets pushed to 2023 due to dealership allocation, then I'm out.

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