Tesla Beating the Dealership Game

i thought it was only toyota dealers.

i like everything about tesla dealership model except the dearth of service centers

 

To be fair Ford is discipling Dealers who mark up vehicles - a local Ford Dealer in a neighboring community learned this the hard way.

Ford CEO Asks Dealers to End Markups, Plans Punishment | The Truth About Cars
"Ford CEO Jim Farley is now telling dealers that they need to cut it out lest they be punished by the manufacturer."

Ford CEO Jim Farley Fights ‘Unreasonable’ Dealer Markups | The Drive

Ford CEO Farley cracking down hard on $3.6 billion dealer markups | Fox Business

Let's not forget the company Ford doesn't get a penny from Dealer markups from dishonest Dealerships - it actually hurts Company sales and influences Customer perceptions is a very negative way for the car brand.

Ford CEO Jim Farley Wants 100 Percent Digital Sales, Fixed Prices (fordauthority.com)

Ford and GM Warn Dealers to Stop Charging So Much for New Cars - WSJ

"Auto makers try to curb the practice of adding fees to the suggested retail price, saying tactic could cost dealerships future vehicle inventory"

"In a letter to its dealers last month, GM also said it could take action against “a small minority of bad actors” who were selling or leasing vehicles at rates “far in excess” of sticker prices set by the auto company. It said GM could decide to withhold some vehicle shipments to those dealerships."

"Ford Chief Executive Jim Farley said Thursday that dealers who engage in this practice will face consequences, including losing supplies of future models. "

 

sounds like toothless threats for show. if they could, and wanted to, they wouldn't have to make it public, it would just end.

 

Does this sound toothless?

Ford CEO Jim Farley Wants 100 Percent Digital Sales, Fixed Prices (fordauthority.com)

"As Ford Authority reported in early March, the forthcoming reorganization may also require that dealers sell EVs at fixed prices with zero physical inventory in scaled-down spaces. Now, Ford CEO Jim Farley has given his strongest statement yet indicating that this will indeed be the way that FoMoCo dealers do business at some point in the future."

"We got to go to nonnegotiated price, we got to go to 100 percent online,” Farley said while speaking at the 2022 Alliance Bernstein Strategic Decisions Conference"

Ford sets rules for dealers selling electric cars: Fixed no-haggle pricing (msn.com)

"According to The Drive, The Blue Oval issued a warning at its annual dealer conference, telling franchisees that they have until the end of October to decide whether to commit to fixed, no haggle pricing or be cut out of selling EVs."

 

It’s just hot air until he actually does something.
Dealers aren’t powerless in the relationship

 

You didn't read the post

Ford sets rules for dealers selling electric cars: Fixed no-haggle pricing (msn.com)

"According to The Drive, The Blue Oval issued a warning at its annual dealer conference, telling franchisees that they have until the end of October to decide whether to commit to fixed, no haggle pricing or be cut out of selling EVs."

He has done something see above.

This was his first step in no negotiating price and no markups - Dealerships either agree and comply or they can't sell Ford Electric Vehicles.

I suspect Dealers that sell traditional cars are a hard nut to crack but next on his agenda.

Rather than criticize, I say good job on beginning to change the Manufacturer to Dealer relationship to better support the customer.

This is a definite concrete step toward fixed pricing and cutting out the Dealer middleman.

 

Does that mean they cannot discount as well?

 

I don't know - ask Tesla buyers who have dealt with fixed pricing they may have some insight.