Mike Levine saying outright he does NOT care about Granger/Chapman/SAC

[MOBRONCO]

Levine was a little blunt, but people have been blowing him up for days. Don't the small dealers only hold about 2% of orders?

2% of 195K is still almost 4,000 Broncos.

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[Gamecock]

You "plunked down" a fully refundable $100... And, you knew about allocations months before you ordered.

No one knew allocations would move from being 50% based on the number of reservations (which already broke a promise) to 12.5%. No one could have guessed @Ford Motor Company would bend over their reservation holders that bad.

 

[_finack]

That’s what everyone, including the smug Levine is missing. This isn’t a Granger/SAC/Chapman issue.

I canceled a Granger reservation to order from a small dealer.

They have more reservations than allocations. In fact for MY21 they had more orders (converted reservations) than allocations.

Their share for MY21 will be about a 42% fill rate of orders, if the last 14 are produced.
If you you knock out 99ers it only raises to 60%.

How many of this small dealer’s customers are going to wait 2 years or longer with commodity restraints to get a Bronco when big dealers get stock.

Tomorrow I’m calling Ford and canceling one of my reservations and I’m going to cite the new allocation formula and Mike Levine’s tweet.

I’m still holding my other reservation for a MOD Top but, Ford just lost a guaranteed $55K.

Well... They lost $55k from you but they'll get it from someone else. It's not like software where production capacity is essentially infinite; it's a limited availability, highly desired, physical product.

Ford knows they will easily sell every Bronco they make for the next couple of years at least, so they know they can do things like this and survive the temporary negative attention.

It does stink for Granger and the other dealers in a similar position trying to shake up and improve the American dealer experience and of course their customers caught in the crossfire. And that's an understatement.

 

[Atomicdog]

Well... They lost $55k from you but they'll get it from someone else. It's not like software where production capacity is essentially infinite; it's a limited availability, highly desired, physical product.

Ford knows they will easily sell every Bronco they make for the next couple of years at least, so they know they can do things like this and survive the temporary negative attention.

It does stink for Granger and the other dealers in a similar position trying to shake up and improve the American dealer experience and of course their customers caught in the crossfire. And that's an understatement.

Capitalism is great, Ford can choose to tilt the playing field any way they can to maximize profits or to be spiteful to a subset of their dealers.
Unfortunately what works the best financially is not always the best way to build a "Lifestyle Brand" which Ford has stated is their goal. They don't have a clear concept of what they want and it shows in this disaster of a launch.

 

[RBF 1401]

State laws govern allocations so that an OEM can't arbitrarily kill a dealer via cutting off supply. Generally, the rules say the allocation needs to be fairly applied and based on sound business reasons.

The takeaway here is that Ford likely got heavy pushback from litigious dealers who threatened Ford over the reservation system that transformed allocations from a largely volume-based calculation to a consumer choice calculation that Granger/others were able to successfully "hack". Granger can probably reach volume in a few years with a dedicated push to be a national-level dealer.

This is what will likely happen. Granger Ford and Granger Motors are in a rural town of 1700 people and have grown to one of the largest dealerships in their state in recent years.

With the way Earth is getting smaller and smaller through our hyper-connected global networking, companies embracing a long-term customer-based global approach will succeed.

Entities who want to continue with their underhanded, backroom, bleed the customer for as much as you can mentality, will not do as well.

As Ford is shifting, not only away from cars, but also toward other innovative ideas, it makes sense that they need to move away from antiquated sales strategies as well.

There is a reason companies like Carvana and Vroom are growing like crazy.

 

[Dads_bronze_bronco]

Granger got 203 units allocated for 2021 for the shortened half-year run, and with slower start up speeds for manufacturing. They knew it, we knew it.

So why would anyone imagine that Ford would change the formula drastically enough for 2022 to only allocate 100 to 200 Broncos to Granger? If anything, it would be reasonable to expect at least double that 203 for the full 12-month year, and possibly more as MAP should be up to full production speed.

On the outside this is reasonable to imagine. The dangerous assumption was Ford uses the same allocation system for 2022 that they did for 2021.

Between the time we reserved and ordered, given that Ford had already instigated one arbitrary allocation system designed to swing more to big dealers than their share of Bronco reservations suggested and cancelled XPlan—clearly driven by big dealer pressure—it was a mistake assume anything would be the same for 2022.

Of course a lot has transpired since then making this even worse: chip shortages and MIC tops driving months of 33% less sales has all the dealers screaming for more inventory. Not surprised large dealers banded together and threatened Ford on this.

 

[stratego]

This is what will likely happen. Granger Ford and Granger Motors are in a rural town of 1700 people and have grown to one of the largest dealerships in their state in recent years.

With the way Earth is getting smaller and smaller through our hyper-connected global networking, companies embracing a long-term customer-based global approach will succeed.

Entities who want to continue with their underhanded, backroom, bleed the customer for as much as you can mentality, will not do as well.

As Ford is shifting, not only away from cars, but also toward other innovative ideas, it makes sense that they need to move away from antiquated sales strategies as well.

There is a reason companies like Carvana and Vroom are growing like crazy.

The big elephant in the room is the internet and social media. Technically, Granger isn't supposed to be targetting outside its sales area, and Granger would never break this rule by placing ads in California newspapers for example. Social media is much more grey because people can find and share Granger's deal and grant the dealer a national audience.

Big dealers in major metro areas have a lot to lose with this type of dealer capturing sales from what was once a captive market. Unfortunately, they also have the law on their side to pressure Ford into keeping them a small town dealership.

 

[PowPow]

Chapman is 25 minutes from my house and was the closest dealer even willing to commit to any price at all, let alone a discount. I got told "we'll determine market value when the truck arrives" or some variant thereof 6 different times. Why would I agree to pay an unknown amount of ADM vs 4% below invoice?

If I weren't in Chapman's backyard, I'd still have ordered there, because the 6 closest dealers were clueless about the car and their price. We don't all have the luxury of supporting our local dealer when our local dealer has zero interest in supporting us.

But, ya know, keep blaming the victims... we were "asking for it" right?

Lies!

Chapman is 5mins from me. And I transferred out and got another dealer local to me (10mins) to commit to MSRP with no issues.

Not sure who these 6 other dealers you called, but I guess I must've got lucky and found the only one you didn't call. (odd too, it was literally the first other dealer I called)

I signed a buyers order with them in January when I ordered for MSRP. Zero issues.

Sorry, I tried to stay out of this thread after my thread blew up. But misinformation to support the narrative of 'no dealer would agree to MSRP' is simply just adding gas to the fire.

It's simply not true.

 

[JaxGtc]

I think the title of this thread is a not a depiction of what he said and should be changed.

 

[bajabronco57]

I read they have 800+ reservations. That means even if they got double the allocation for 2022, there are STILL hundreds pushed out to 2023 or longer.

I would never place an order with them if I was told this in advance. That begs the question, did they tell people that?

If you ask they will tell you which is more than I can say for most dealerships.

 

[Dads_bronze_bronco]

Because I was told by Ford that I would get my Bronco before those any dealer stock untis were built. Did ya not read the clip posted. That was from Ford itself. Every dealer got that communication,. and at the time it was issued the mega dealers knew this. But, when Granger, and a couple other small dealers out manuvered them they went crying to Ford, and Ford forgot every promise they had made. I'm sorry you can't understand that when someone as big as Ford makes a promise that people tend to believe them.

Didn't believe them when I ordered. They had already gone back on several promises.

FWIW - I was in the first third of allocations at my dealer. I still don't have my Bronco. The dealer only had about a third of their 2021 allocation number scheduled.

The entire thing is a shit show.

 

[treadlightly]

because smaller dealers that outsold their fair share have to get their reservations first?

How did they outsell their fair share? By competing fairly in the marketplace against complacent juggernauts who are more than happy to hose their customers?

 

[Blackhawk9]

I am in no way happy either with my Bronco on Dirt Mountain for 2+ months but...Can the people complaining about their reservation not being fulfilled until 2022 and beyond change their dealer to one that can get their Bronco earlier than that?

 

[treadlightly]

The entire thing is a shit show.

I wonder if anyone would debate that.

 

[Atomicdog]

Lies!

Chapman is 5mins from me. And I transferred out and got another dealer local to me (10mins) to commit to MSRP with no issues.

Not sure who these 6 other dealers you called, but I guess I must've got lucky and found the only one you didn't call. (odd too, it was literally the first other dealer I called)

I signed a buyers order with them in January when I ordered for MSRP. Zero issues.

Sorry, I tried to stay out of this thread after my thread blew up. But misinformation to support the narrative of 'no dealer would agree to MSRP' is simply just adding gas to the fire.

It's simply not true.

How is that a lie?
He never said "no dealer would agree to MSRP" he said the 6 closest to him in NJ would not. Unless I missed an edit somewhere.

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