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Ford is moving away from packed dealer lots to make-to-order

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  • Pandemic and its consequences Shortage of chips Americans have changed the way they buy cars, and Ford believes it’s the right way to move the build-to-order process forward.
  • Ford recently introduced Ford Express Buy to help sell cars online Mustang Mach-E Ford Blue Advantage for used cars and other digital options.
  • CEO Jim Farley, ReutersHe said he knew that Ford was wasting money on incentives. When a customer says in advance, “This is the car I want,” it doesn’t really matter.

    Ordering the exact car you want (colors, trim levels, accessories, everything) is how many Europeans have bought their car for years. However, the United States is working more on the model of shoppers going to dealers and returning home in one car from the parking lot. The pandemic has changed the way Americans interact with local dealers. People are now choosing to communicate more online, with less insistence on going out for a test drive.

    Ford noticed that, and now the company wants to move more future buyers into the car ordering process, Ford CEO Jim Farley said at a conference call this week in the second quarter of the reporter and the company. He said he had discussed the results. Having more buyers order a particular vehicle online can also help Ford’s bottom line.

    “We are moving to an order-based system and are serious about keeping our inventory on a 50-60 day supply,” he said. “We know we are wasting money on incentives.”

    It wasn’t just the direct impact of COVID that caused changes in customer behavior. The tip shortage, which has been affecting dealers’ vehicle supplies since the beginning of the year, is another major reason Ford thinks it can be better when more customers order their vehicles. Due to low inventory, a wide range of options was not always available at home, and a lack of tips forced people to wait for the vehicle they wanted.

    Ford recently introduced Ford Express Buy, an online-only way to buy Ford cars in the United States.So far, the only model that can be purchased this way is Mustang Mach-E, But said Kumar Garhotra, president of Ford’s Americas and International Markets Group Automotive News Last month, the system will be extended to other models at some point.

    “Partnering with a dealer to sell a vehicle is a really exciting way for us,” Garhotra said. “You start building your car, price it, add it to your cart, and you can go all the way to make a deal. Ford Credit can approve a customer’s credit in seconds , And you can pay and the dealer can deliver the car to your home. ”

    Using Ford Express Buy is an option for Ford dealers. Ford also has a Ford Blue Advantage for selling certified used Ford cars online. Mexico has a Ford Digital Store where people can buy new cars 100% online.

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Ford is moving away from packed dealer lots to make-to-order

Source link Ford is moving away from packed dealer lots to make-to-order

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