Ford has long sought to save costs and obtain the maximum return on each sale of its vehicles. In the coming years, this plan of cuts will be even more present and its CEO, Jim Farley, already knows how the sales of its vehicles will be carried out in the coming years. The plan of the American manager goes through their electric cars are purchased over the internet, where the customer receives a “simple and predictable” experience.
This plan by Ford comes as a response to the bad experiences that the brand is having with the different dealers in the United States, since they are significantly increasing the price of the vehicles in order to earn significant economic sums. This is not comparable to what happens in Spain, for example, where distributors’ margins are much lower. In the North American country they are reaching figures in commissions that have tripled in recent months due to the low stock of vehicles they have. From Ford they do not agree with this model.
From the directive they intend to seek in the coming years that their sale of vehicles is carried out through direct use on the web, which will mean a direct or “agency” sales model. This is something very similar to what brands like Mercedes-Benz or BMW are looking for their customers, something that will mean significant cost savings and the elimination of multiple intermediaries.
During a call to his investors, Jim Farley made specific mention of this type of direct selling. His search to stand up to Tesla also involves adopting the same way of marketing models. The CEO, during his conference, was opposed to what North American dealers are doing with their customers, so he would like to speed up the arrival of the online sales model.
Farley expects this online service to present “a very predictable experience, whether they’re at a dealership or [en casa] with rabbit slippers; will have a very simple, transparent and easy”. Although the North American firm hopes to have a greater boom in its sales over the Internet, its directors’ plans do not include completely getting rid of dealers, since they will continue to play a fundamental role in sales, as they will additionally serve as an exhibitor so that the potential customer can physically see the vehicles.
The CEO of Ford sees significant secondary cost savings in this sales model, since they could save on sending their cars to dealers who then deliver them to customers. The new vehicle distribution would skip the middleman and deliver the car directly to the end customer, which, according to his plans, could save $600-$700 per vehicle.
Taking into account this cost savings for each car delivered, the final figure would be an amount estimated at several hundred million dollarssince the firm expects to be able to manufacture and market around 600,000 electric cars in 2023 and more than 2 million by 2026.