Ford Announces New Company, Model E, what's your thoughts?

[ovrszd]

Why can't Ford still have service centers regardless whether there is a middle man in the new car purchase?

A Dealership's cost of a new vehicle and it's pay for warranty services performed is partially based on sales. I.e., "4 Star Dealership" etc.

There is no reason for the manufacturer to eliminate the Dealer in the sale of a new vehicle other than the manufacturer's bottom line.

 

[Oaktree]

Why can't Ford still have service centers regardless whether there is a middle man in the new car purchase?

They can, and will need to. Since the service center will be there, why not use it to sell cars too? As someone else noted, the Carvana business plan isn't for everyone.

As things technologically advance the "need" for dealerships grows.

For example. If you have a newer vehicle that uses a key fob rather than a steel key, try losing the Key Fob and replacing it.

Not just key fobs, most any repairs short of tire changes, brake jobs, or light bulb changes increasingly need access to proprietary diagnostic systems. Even if (and that's a big if) right to repair becomes reality few independent shops will have the resources to purchase the required gear nevermind the factory training involved.

What stood out from the particular article I read about the agency method (and unfortunately not limited to the agency method) was that the #%*! MBAs were already rubbing their hands together in anticipation of selling "upgrades", basically software tweaks, like a few more HP, for a monthly recurring fee that was shared with the dealer. Since most new cars will have OTA updates the manufacturers can simply deactivate the upgrade if you don't pay and pay and pay. Just how far will they go with that? Monetize everything!

I've heard stories that tesla is doing something like that now with used vehicles...turning off the optional, premium features when it's resold so the new owner needs to pay for this all over again. Granted, this was something I read online and we all know if you saw it on the internet it's gotta be true, but the ability to do so exists.
Personally, I find this connectedness to be very big brother.

I think the battery thing is mostly a trendy gimmick and I don't understand the manufacturers so eagerly signing up for this. Maybe there's huge tax credits or some kind of "offset" that they can apply to their CAFE standards.

Right now we don't know if EVs are a fad or a trend, but no manufacturer wants to be caught without them in their lineup.
Political winds are subject to change but it's clear that the current powers that be are intent on pushing them on us.

 

[California]

Nobody's mentioned the John Deere Right To Repair controversy. Key fobs programmable only by a dealer, might be just the beginning of a trend.

I don't know it its still true but in the early days Ford was famous for pushing all it could produce, out to dealers to store on their lots, without the dealer's permission. Then demanding payment after 30 days or so, whether or not the dealer could sell that many. A very predatory practice toward their dealers.

I bought an Isuzu Trooper in 1988 that I think was under those conditions. I had seen a row of them in a field next to a dealer and only a few had sold over several months. I was literally on my way to San Francisco to buy the Trooper with the best deal anywhere that I could negotiate by phone and stopped at this dealer on the way. The salesman said I'll be honest with you, the time has come that we need to pay Isuzu so $500 off that price you were offered by the SF dealer (which was the lowest I had found calling every dealer in the region) if you buy it right now. Sold! I drove it for 16 years.

 

[Midniteoyl]

The new Key fob's. Yes - I've heard they are VERY expensive. The second fob that came with the Taco Wagon is securely ferreted away.

I had one replaced (2019 F150) = $275.

 

[Wis Bang]

Local van/shop does a big business, including the ocal auto dealers. My 2011 silverado came with one key and fob. $120.00 for (2) mated VATS [chip] keys and one fob. Third owner and he had to delete 7 out of 8 keys/fobs and program in what I bought...worked for me.

 

[airbiscuit]

One company is for profit, one company is for bankruptsy. Just not sure which will be which.

 

[PuffyC]

It's not a new company - yet - they're just splitting the businesses internally. Everyone who makes it their business knows the ICE is dead, this is just Ford's way of preparing to spin off and jettison all the old legacy stuff at some point down the road. EVs represent 1 out of every 12 vehicles sold around the globe and that figure increases dramatically every year so it will be a lot easier for them doing it this way. I would not be surprised to see all domestic manufacturers go this route because it's the only way they'll ever be able to compete with the Teslas and Rivians of the world. The only thing limiting EV sales today is that they can't build them fast enough, and war and gas prices will ensure that continues. This is just a way to help Ford better position itself to capitalize on that.

 

[timbatrader]

With the way technology is going I don't see a future with privately owned vehicles drivers license's are increasingly difficult to get the younger generation just cant be bothered to get one they are just going to use ubers. Once driverless EV ubers are common big corporates will own fleets of them you just dial one up whenever you want to go somewhere think of the advantages
no fixed cost of ownership no need for a garage no hassles maintaining it or replacing it
for a generation that want everything NOW perfect no need to study for a license no need to save up for a deposit to buy a car

 

[Hay Dude]

With the way technology is going I don't see a future with privately owned vehicles drivers license's are increasingly difficult to get the younger generation just cant be bothered to get one they are just going to use ubers. Once driverless EV ubers are common big corporates will own fleets of them you just dial one up whenever you want to go somewhere think of the advantages
no fixed cost of ownership no need for a garage no hassles maintaining it or replacing it
for a generation that want everything NOW perfect no need to study for a license no need to save up for a deposit to buy a car

Add to that no money for a car, fuel and repairs.
The only people with EV options are the upper middle class and above driving mostly small passenger cars and SUVs

 

[Jstpssng]

Rather than forming new companies why don't they start forming new vehicles which we can afford to buy and operate.
Put your money where your mouth is, and build an inexpensive EV pickup in the price range of the Ranger or Colorado... with the same range and ease of fueling.
That's the Ford legacy after all... Henry is rolling over in his grave.