Ford Corporate Response to Price Gouging by Dealers

[mike0783]

Well, I sent an email to Ford, which they responded to with some canned "we appreciate our customer feedback" type response.
So, I responded to that with a "No canned responses, please" inquiry, as to whether or not they condone the price gouging by their dealers at a time of slumping sales. Here was their response:


Thank you for your follow up email.

We regret the circumstances that have prompted you to contact us.
Excellent dealer service helps us maintain our customers goodwill. When
that service is not satisfactory, we appreciate being advised so the
information may be forwarded to the appropriate department. Feedback helps
us keep dealer sales performance at the highest possible level.
However, Ford and Lincoln-Mercury dealerships are independently owned and
operated and as such, set their own prices for vehicle sales.

To locate a Ford or Lincoln-Mercury dealership, please visit
www.genuineservice.com.

You may also obtain Manufacturer's Suggested Retail Pricing (MSRP) for
the model and option configuration you are seeking through our Brand
web sites. Simply select the site for the model you are interested in,
and you will be able to configure and price the vehicle of your choice:

If you have any other inquiries or concerns, please feel free to
contact us and we will be happy to address them for you.

Sincerely,
Melissa
Customer Relationship Center
Ford Motor Company

[THREAD ID:1-2SKPW1]

-----Original Message-----

Sent: 3/15/2006 05:10:50 PM
To: [email protected]
Subject: Re: Ford Motor Company

Hi Anitha,

No offense, but this is just a boilerplate response
you have sent me. I was looking for specific answers
as to the situation with Ford Dealers gouging on the
2007 Shelby GT500.

For clarification, I have provided a link to current
eBay listings of the Shelby GT500 for your review:
http://search.ebay.com/shelby-gt500...trefZC12QQfromZR8QQfsooZ1QQfsopZ1QQsacatZ6001
All the listings are bids for the amount the buyer
will pay over MSRP.

Looking forward to your response.

 

[07SHELBYCOBRA]

Everyone should realize that they are not going to be able to get the first GT500. Just wait and Ford will build enough for all who wants one. Someone please tell me why Ford will not build as many as demand requires. They already have the tooling monies spent, now all they have to do is build them on the assembly line. That is the business they are in. What makes everyone think there will be a shortage of GT500's. Please explain.

 

[mike0783]

"Everyone should realize that they are not going to be able to get the first GT500. Just wait and Ford will build enough for all who wants one."

I agree with you 07ShelbyCobra. Still, sometimes the squeaky wheel thing works, plus, I like to ask pointed questions to see what kind of a response I get. Can't hurt to ask.

 

[DukeOfValencia]

Someone please tell me why Ford will not build as many as demand requires. They already have the tooling monies spent, now all they have to do is build them on the assembly line. That is the business they are in. What makes everyone think there will be a shortage of GT500's. Please explain.

I'd guess there are a number of reasons. Here's one. There are federal regulations with regards to average mpg and emissions for ALL Ford vehicles. A certain % of vehicles must be of the "green" variety. So if they build and sell 200,000 GT500's they would have to offset that by selling 200,000 hybrids... not gonna happen.

 

[sacha]

You live in a capitalist society and if someone is willing to pay $20,000 over MSRP for the car, the dealer has every right to charge that - it's simple supply and demand. Business is business and all we can do is accept it. If you were a dealer, would you be selling them at MSRP out of the goodness of your heart? Obviously you wouldn't.

It sucks that most of us ordinary joe's won't be able to afford one (even if we can find one available), but that's just the way it works unfortunately.

 

[ANGELMAV]

Not to burst anyones bubble, but they arent going to build enough to meet this kind of demand. Because of parts issues year one is most likely to be in the 7,000 range, 2008 will not exceed 10,000. fords own reps came out and stated that they want to keep the numbers low because that lends value to the buyers. This is going to be a tough ticket for two years then it will be gone. Sure some will get msrp in 07, more in 08 but dont kid yourself into thinking its going to be much easier to find one next year. Thats my take on it anyway.

 

[Wsmatau]

Mike,
The quick answer to your question is that the dealership (i.e. the owner of that dealership) actually owns that car, not Ford corporate. If you had your car for sale in the paper and someone came to your house and showed you a Kelly Blue Book that said it was worth $10k less than you were asking, while your phone was ringing off the hook with interested buyers at your asking price......what would you do?
I'm not saying we have to like it. But like someone said before, we do have to live with it.

 

[Dyoct]

It is Manufacturer's Suggested Retail Price after all...

 

[speedytang]

I know that either Ford has others that bidded on parts production and won or your going to see only 2000 cars because we won a bid for the Hood Liners and that order was only for 2000 units in a 18 month window. Usually it is difficult to get certain bids and this was a easy one because in manufacturing it is hard to wait 120+ days to get paid but we have other contracts using the same sound mat material.

 

[2001 Yellow GT]

I'm a manager at a Ford Dealer and our Ford Reps told us that the GT500's are to be sold to maximize dealer profit.

Unless you already have a deposit on one, most have been pre-sold.
I am getting the first one allocated to us, then we are only getting one more.
I am paying MSRP for mine and our 2nd unit sold for $5K over MSRP.

Ford has not yet officially released the MSRP.

 

[05MGT]

The real bitch of it is, regular joes like myself who want to pay MSRP for a car have no barganing power because there is always that rich fanatic right behind me willing to pay over MSRP.

 

[JoeTrev]

i love the car, but i WILL NEVER pay OVER msrp for any vehicle....ford is going to help ruin thier reputation by doing this...if they were smart they would raise the msrp of the vehicle and restrict dealers from getting the profit. Ford needs the profits to get out of "junk" status

 

[ANGELMAV]

Im with you on that Joe, at least if ford was making the higher profits maybe my stock would go up and I could afford to pay it! Of course since there is no official word yet on the MSRP who knows what that magic number is going to be?