This will help curb dealer surcharges.
Inventories will be managed differently.
Shopping for a new vehicle has become quite an ordeal. Inventories remain low, production delays are the norm, and if you happen to want an all-new vehicle like a Ford Bronco, you will likely come face-to-face with massive dealer markups. For its new Model e EV division, Ford will put a stop to this practice.
Over the last few months, Ford, among other automakers, has made headlines because of dealers taking on unreasonable and often abusive “market adjustments” or markups to MSRPs. On many occasions, price sheet pictures of new vehicles for sale would include $20,000 and $50,000 markups. Ford’s asked dealers to end this practice under threat of future allocation cuts.
In order to curb this practice, the MachEForum reports that Ford’s newly formed Model e EV division will instill a non-negotiable pricing policy. What’s more, the selling process will be based on customer orders and not dealer inventories.
This new approach will undergo revisions over the next few months. There’s no word as to when the program will be put into place but the sooner the better.
