Friday, July 1, 2022
News Ford Looking At Reducing Inventory, Adding More Customer Ordering

Ford Looking At Reducing Inventory, Adding More Customer Ordering

Ford looking at slashing dealer stockpiles

  • Longer wait times over microchips giving brand chance to change system

  • Lower inventories mean fewer incentives but could offer more choice for buyers


The inventory issues caused by the ongoing microchip shortage is giving automakers the chance to do things differently than they have in the past. Ford has also noticed that buyers are changing how they interact with dealers as a result of the pandemic, preferring more online communication and putting less importance on the test drive. So the company wants to use the new situation to move buyers toward ordering their new Fords instead of picking from a massive supply on the lot.

“We are really committed to going to an order-based system and keeping inventories at 50 to 60 days’ supply,” said CEO Jim Farley, Reuters reports. “I know we are wasting money on incentives, I don’t know where.”

Before the shortages, dealers would often stock hundreds if not thousands of vehicles both on the lot and in remote storage facilities. Enough for months of sales, to ensure that they could supply the specific vehicle a customer wanted (or at least the one the dealer wanted them to want) in days rather than weeks or months. With buyers suddenly spending more time online and becoming accustomed to waiting for vehicles to be produced, Ford thinks that lower inventories and more orders would benefit both.

Farley said that build-to-order would reduce the number of vehicles sitting in dealer storage and reduce the incentives required to move them. An easier order process for customers could also give them increased benefits including being able to more easily pick the colour and trim they want. It could also potentially make it easier for an automaker to produce enthusiast options that may not have made sense under the old way.

 

 

Trending Now

Hyundai Teased the Production Version of the Ioniq 6 for the First Time

Previous images shown by Hyundai were either from the Prophecy concept or from prototypes The official reveal could take place tomorrow The electric...

VinFast Could build an Electric Pickup in the United States

The company had filed patent images for a pickup in 2020 Since a special tax on imported trucks still applies in the US,...

Mini Creates Maxi Puzzles to Help Ease Customer Supply Chain Woes

Tired of waiting for your Mini? How about a puzzle to pass the time Mini making garage-sized and normal-sized puzzles for waiting clients Like...

The NHTSA is now Requesting More Information from Honda in its Probe over Phantom Braking

A probe had been launched back in February over issues with the autonomous emergency braking system of Honda vehicles The 2018-2019 CR-V and...

Battery Problems Force Volkswagen to Pause Production of the ID.Buzz

The ID.Buzz is not built in the same factory as the brand’s other EVs A new supplier has been used for the batteries...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.