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> Ford envisions a new process that will result in a non-negotiable price for EVs and rely on customer orders, rather than dealer inventories It's worth noting
by gzer0 5y ago
> Ford envisions a new process that will result in a non-negotiable price for EVs and rely on customer orders, rather than dealer inventories
It's worth noting that Ford was one of the major automakers who funded the lobbying effort against the very Tesla model they now seek to join.
- judge2020 5y agoDo you have a general source? I know in many places it's the dealerships themselves contributing to some PAC that advocates for banning it, eg. Oklahoma HB 3994, but I haven't heard of Ford directly doing this. If anything, Ford has locked themselves into the dealership model via historically partnering with them, so now and forever they have to share profit margin with them while Tesla is able to enjoy the full 29% of their automotive gross margins[0]. 0: https://tesla-cdn.thron.com/static/WIIG2L_TSLA_Q4_2021_Update_O7MYNE.pdf#page=3 https://tesla-cdn.thron.com/static/WIIG2L_TSLA_Q4_2021_Updat...
- gzer0 5y agoIn the United States, direct manufacturer auto sales are prohibited in many states by franchise laws requiring that new cars be sold only by independent dealers [1]. This source provides some historical context as to where the franchise laws originated from, albeit, I cannot find anything that directly links Ford to my original assertion [2]. The National Automobile Dealers Association (NADA) is responsible for representing 16,500 dealerships across the nation. While NADA abstracts away the ties between dealers and automakers, the vast majority of NADA participants are the legacy/typical automakers [3]. [1] https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes [2] https://www.cato.org/regulation/summer-2014/tesla-car-dealers-lobby#origins-of-automotive-distribution-restrictions https://www.cato.org/regulation/summer-2014/tesla-car-dealer... [3] https://en.wikipedia.org/wiki/National_Automobile_Dealers_Association https://en.wikipedia.org/wiki/National_Automobile_Dealers_As...
- dangrossman 5y agoThose franchise laws were written by and lobbied for by the dealership associations in direct response to Ford and GM dabbling in company-owned stores in the 1990s. They were not pushed for by Ford but against Ford, to make it illegal for Ford to directly compete with its franchisees.
- cstejerean 5y ago> the vast majority of NADA participants are the legacy/typical automakers I don’t see where in [3] this is supported. NADA is an association of dealerships not auto makers. I think there might be some confusion between say Ford the auto manufacturer and a franchise Ford dealership.
- cortesoft 5y agoDoesn't that make perfect sense, though? They fought against it because they knew their model couldn't compete... once they lost their effort to prevent it, their only choice was to adopt it.
- spcebar 5y ago"If you've lost to them, join them."
- gamblor956 5y agoYou have your history exactly backwards. Ford and GM tried to cut the dealerships out of the equation several decades ago, and dealerships banded together in many states to lobby for legislation barring automakers from directly selling to customers. BTW: you link to the NADA wikipedia page and claim that they represent the major automakers. They do not. They represent dealerships that sell cars made by the major automakers. The major automakers are not members of NADA.
- MisterSandman 5y agoI think you replied to the wrong comment.