📊 2022 Bronco Allocations Formula Per Dealer

[DaveH]

...
As I said, Granger is the outlier, and because of their tenacity, they will get far more Broncos than they would have under any traditional allocation formula. They probably have more Bronco orders than their average throughput over the last 3 years combined. ...

The new formula gives almost no weight to the number of reservations. All that hard work by Granger, while it helped with MY21 allocations, will have very little impact on MY22 allocations. What benefit is it to Granger to have a lot of Bronco orders if that isn't factored into the allocations?

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[Gamecock]

If you think about it simply from a numbers standpoint, if a dealer has historically sold more cars then it will most likely have more reservations. If it has historically sold less cars it's probably in a lower population area that has less reservations.

Cool, then they can make it really simple and base the allocation formula 100% on the number of converted reservation orders a dealer holds....since you are saying that it basically is the same thing. Then reservation holders are happy....but of course big dealers would be furious again. So, why would that be if what you say is true?

How could it possibly be more fair to everyone, especially order holders, than to proportionally send Bronco allocations at the exact proportion as orders held in hand by the dealers? You say it's basically that way anyway (it's obviously not).

 

[DaveH]

There will be outliers of course like Granger and such, but on average I don't see how this screws anyone over anymore than anyone else.

It screws any dealer (and their customers) that is trying to increase their volume by going after the Bronco market.

 

[airishfan]

Interesting theory, but please explain how is it faster to build a dealer stock Bronco compared to one that is ordered.

because a lot of the orders are different, if Ford can spend the week just to build base Broncos with automatic tran they can build more of them then if they spent it trying to build orders plus with MSRP price locked in ever month they losing money because its costing more and more to build a Bronco.

 

[Lab00Rat]

Seems every change that has been made since the introduction of the reservation system has been to the benefit of large volume dealers.

This MY22 formula only serves to reinforce favor to the high volume dealers. I feel like the average customer was played by Ford to measure market potential and establish an initial allocation to the dealership model. After the initial play was complete, the customers who opted to go with smaller dealers who are less likely to screw the customer, got screwed by Ford.

We have seen for MONTHS now that Ford can build a vehicle and hold it at Dirt Mountain for "reasons." There is nothing that says Ford can build to the reservation stamp and "hold" it till a delivery can be arranged to the small dealership who might only get a truck once a month. We've seen trucks loaded with Ford vehicles that come from different production plants, so this is not a far fetched idea. No need to pander and assume ignorance of stock flow and commodity restraints to justify delays on reserved orders over large volume dealer greed. Switching the rules again and again to satisfy the big dealers is really hurting the brand in the long run.

 

[Gloff]

I'm truly not arguing with you. You asked me to support my point, I believe I did.

I'm aware of that, and you did. The MIC top situation forced Ford's hand on the stock issue, but you're right in they did say that. Tough position to be in.

As for Granger, yeah it will hurt them, but not nearly as bad as a non-reservation system would have. My point on that was that it's better than the alternative where they would get a fraction of what they will get.

 

[J.O.]

I don't have the patience to wait another full year. I'm in a very long line at Granger Ford. Wanted Rapid Red, it's gone. It's been a complete shit show, not all Ford's fault but they could be doing themselves a service by getting all reservation holders that ordered a Bronco their Broncos first!

 

[Pl8to]

It screws any dealer (and their customers) that is trying to increase their volume by going after the Bronco market.

Somewhat, since they do include the 2021 Bronco Allocations (which were based on orders converted if I remember correctly) then those high volume Bronco dealers will get a bump in allocations from that.

What I don't understand is why everyone treats the Grangers and such as somehow better dealers than other "big dealers". They say an opportunity to grab a bunch of cash by selling a shit ton of Broncos at a slightly lower rate. They knew how allocations work as they've been in the business and they also knew that there are risks in getting that volume. Somehow everyone is acting like it's only Ford that is breaking promises and that any dealer that promises things at this point is doing the same thing.

If I followed others logic on that I should be complaining that it wasn't fair that Granger got so many allocations just like those damn big dealers and my small dealer only got a couple.

This isn't to bash Granger as it seems like they are pretty nice, but at the end of the day they are trying to make money and they have chosen that business model.

 

[Pl8to]

Is Ford following the reservation system perfectly, no not at all, that went out the window when everything went to shit (and if you expect otherwise you may be off your rocker). They have a keep revenue coming in and right now with all the vehicle issues across the board they are going to crank Bronco's out in the best way possible. I'm happy if they continue to honor the reservations system 75% of the way, as I know it just doesn't make sense to build all reservations first.

Just remember most people on this forum are customers (many even bought from a big dealer ) and some of us are going to be happy customers quicker, but at the end of the day just smile and enjoy your damn Bronco when you get it. And if you can't wait, then move on, go buy a Jeep or a 4Runner and come back to Bronco when you can more easily get one. Just stop your damn bellyaching.

 

[shieldsy]

Future Bronco customers will be more at peace when they realize that regardless of what Ford has said or promised in the past, the ONLY thing a reservation does is provide your contact information to Ford so they can do targeted marketing and outreach.

Divorce yourself of the expectation that your reservation means anything related to when you actually get your Bronco and you will be much happier and have a ton more free time.

Until Ford actually stands up a direct sales channel, separate and distinct from their dealership business model, the end customer or their precious reservation will never be a priority.

 

[Gamecock]

[/QUOTE]
. Just stop your damn bellyaching.
[/QUOTE]

"bellyaching" by big market dealers is what changed the initial plan to fill them roughly in timestamp order, homie...it seems reasonable that people are pissed that Ford reneged on their reservation plan..because of that bellyaching you claim not to like...

 

[Lab00Rat]

I get that I guess I'm just tired of a lot of people complaining about this allocation method assuming that it is automatically hurting reservation holders at small dealerships. If you think about it simply from a numbers standpoint, if a dealer has historically sold more cars then it will most likely have more reservations. If it has historically sold less cars it's probably in a lower population area that has less reservations. If that holds true, which on average it will, then this allocation shouldn't necessarily hurt reservation holders at small dealers anymore than at big dealers.

There will be outliers of course like Granger and such, but on average I don't see how this screws anyone over anymore than anyone else.

Speaking of Granger dealers like that knew this was a risk, whether they relayed that to customers or not it's a different story.

This response makes no sense.
Reservation holders selected their preferred dealers based on factors outside the the ones you outlined. We have no idea what 3 years sales volume looks like in 2020 for MY22, and did not pick the dealership based on those numbers. Your logic falls short on equating reservation numbers with allocation numbers too. This vehicle model has not been sold for 25 years and there was no market data available to predict the reservation response. It was not until AFTER the reservations were flowing in that the larger dealers might be cut off from sales. Once X-plan was off the table, the allocation model for MY21 was revealed and the truth was out. Reservations DO NOT matter for anyone at a small dealer. MY21 deliveries was hard enough, but MY22 will be almost impossible for most reservation holders at small dealers. The result will be MY22 dealer stock vehicles being produced WAY before reservation holders based solely on dealer volume and allocations.

Furthermore, if the dealership had less to sell less, the it's also true that if a dealer had more it sold more. However, this has/had/having nothing to do with the Bronco. Your assumption on allocations = reservations did not hold true for MY21, and it will not hold true for MY22. There were way more reservations than allocations for every dealer (I haven't heard otherwise), but the reservation distribution did not follow traditional allocations for sales volume (based on the dealerships I've communicated with over the past year). I get that there was a cutoff, but the math for the MY22 cutoff will be more severe for smaller dealers than the initial math in regards to the Bronco reservation holders vs allocations.

 

[Rahkmalla]

Do you know how many of those dealer "stock" were simply just canceled orders?

You realize we're all talking about 2022 here right? It's there in a headline.

Prioritizing allocation over reservation means dealer stock WILL be built before some reservations.

 

[Rahkmalla]

True and the reason a certain dealer isn't up at 1:30 worrying. They sell Jeeps also.

If you're talking about the dealer I think you're talking about, I got an email from the owner at 11pm last night. Sure it's not 1:30, but don't claim he doesn't put in the hours.

 

[Gloff]

So, while your cherry picked example is the most extreme case, I can see where it would not be the most efficient method. Couple points though; Ford invented the Bronco specific allocation formula in part to get the Bronco's out to more geographical locations, at least that was one of the claims. So they were not choosing the most efficient path regardless and it was outside their 'normal' allocation formulas of the past. The motivations for its addition after the fact appeared to have been designed to favor dealers over the res holders.

Since it is apparently obvious to you (a dealer) that production according to time stamp would have been extremely inefficient, It seems the two alternatives you are implying is that Ford would have to be either incompetent or flat out lying to reservation holders about the original deal that a $100 reservation would act as a (as close to practicable) placeholder for order of production. Unless you have a third or fourth explanation as to why Ford originally had those terms in place?

Regardless of their motivations or your evaluation of their competence, Ford making those promises was an integral part of generating the huge number of reservations at the start of the process (FOMO is real for many people). People don't like playing by the rules and having the rules changed in the middle. The feel they are being cheated. Can you blame them?

The timestamp as relative position in line is still accurate. Ford said that that, along with build configuration, location, and similar builds would dictate build and delivery timing. It is still accurate, the MIC top situation modified what commodities were available.

I understand your view on the geographical component being less efficient, but remember that was 25% of the formula, so that was a play at conquesting existing off-roaders.

All of that turned out to be moot since most dealers didn't get their full allocation anyway. Our store received 65% of our promised 2021 allocation.

Ford is not intentionally shorting customers or dealers, it's a product of the current global supply chain. I haven't had more than 50 new cars on the ground since May. I normally carry 500+.

Ford had 100k reservations by 7/30, the demand is mostly organic in my view.

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