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> This article takes an off-the-cuff comment from the CEO of Ford and reads too much into it IMO. How does it ‘read too much into it’? He literally says they

> This article takes an off-the-cuff comment from the CEO of Ford and reads too much into it IMO. How does it ‘read too much into it’? He literally says they need to go to a 100% online order, no inventory, no negotiation sales model. That’s a HUGE a change from today.

medler 4y ago
I just think it’s an off-the-cuff comment and he probably didn’t mean it. He’s not announcing a new change in the way they do business. My read is that he’s generally saying he wants Ford to be more like Tesla. It’s not clear if any of his suggestions are even legal, given the laws in most states against direct sales (in some states there are special exemptions just for Tesla).
- ericlewis 4y ago
  I don't think CEOs of public companies are allowed to say things that they don't mean, seems like the SEC would be up their butt about that that. His suggestions are perfectly legal if executed in a legal way, which they have started to do with Ford Blue split.
bluGill 4y ago
Nothing in that (at least the part you quote - I didn't read/hear the entire comment) says you can't have dealers. John Deere (the company I work for) works this way: everything is just in time, if you want a new tractor you order it and get it 3-12 months later. You still have to order from a dealer. Dealers do not keep new tractors on the lot, except for demo units and service loaners. I'm not sure how this will work for Ford though. Deere is selling to businesses, a new tractor is a financial decision talked over with the accountant, and are bought/traded in based on tax deductions (the date you place the order counts for ta purposes not the day you take delivery). Cars seem like more of an impulse purchase and so people want to go to the dealer and drive a new car off the lot. Dealers (and Ford) doesn't want to risk someone buying a car and then changing their mind, which is a lot more likely to happen if you don't have the car yet. Even for Deere, dealers normally keep new small tractors on the lot.

medler 4y ago

I just think it’s an off-the-cuff comment and he probably didn’t mean it. He’s not announcing a new change in the way they do business. My read is that he’s generally saying he wants Ford to be more like Tesla. It’s not clear if any of his suggestions are even legal, given the laws in most states against direct sales (in some states there are special exemptions just for Tesla).

ericlewis 4y ago
I don't think CEOs of public companies are allowed to say things that they don't mean, seems like the SEC would be up their butt about that that. His suggestions are perfectly legal if executed in a legal way, which they have started to do with Ford Blue split.

bluGill 4y ago

Nothing in that (at least the part you quote - I didn't read/hear the entire comment) says you can't have dealers. John Deere (the company I work for) works this way: everything is just in time, if you want a new tractor you order it and get it 3-12 months later. You still have to order from a dealer. Dealers do not keep new tractors on the lot, except for demo units and service loaners. I'm not sure how this will work for Ford though. Deere is selling to businesses, a new tractor is a financial decision talked over with the accountant, and are bought/traded in based on tax deductions (the date you place the order counts for ta purposes not the day you take delivery). Cars seem like more of an impulse purchase and so people want to go to the dealer and drive a new car off the lot. Dealers (and Ford) doesn't want to risk someone buying a car and then changing their mind, which is a lot more likely to happen if you don't have the car yet. Even for Deere, dealers normally keep new small tractors on the lot.