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Imports Shutting Down and Ford Sales?


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With the imports shutting down production, this week anyway, I have noticed that local Ford dealers around here seem to be noticeably busier than usual. Anyone else notice this? If fact, last couple nights I have noticed they are flooded with customers like it was last day of month and huge incentives ending that day. It really stood out as I went by both local Ford dealers by me. I can't remember the last time I have seen them that busy. I have heard the local Toyota and Honda dealers are raising prices on their remaining low stock inventory since they have no idea when new units will arrive. Ford stock price really shot up today also. Something is going on!!!

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WSJ

 

mass airflow sensor shortage causing problems

 

Ford is also monitoring availability of sensor supplies "hourly" as it runs low on the same part, a person familiar with the matter said on Wednesday. Ford is feeling the crunch in Europe and the U.S., though it has yet to shut a plant in response to the situation.

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We were busy this week. Fiesta sales are ramping up (and it's $300 profit...be still my heart). But we are also selling the crap out of Escapes. Also an Expedition today so go figure. We are having our best new month in a long time. Inventory is going to be a problem however as my allocation has not been great. Running out of Fusions, F150s, Escapes and now Fiestas. Don't get me started on Explorers.

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With the imports shutting down production, this week anyway, I have noticed that local Ford dealers around here seem to be noticeably busier than usual. Anyone else notice this? If fact, last couple nights I have noticed they are flooded with customers like it was last day of month and huge incentives ending that day. It really stood out as I went by both local Ford dealers by me. I can't remember the last time I have seen them that busy. I have heard the local Toyota and Honda dealers are raising prices on their remaining low stock inventory since they have no idea when new units will arrive. Ford stock price really shot up today also. Something is going on!!!

 

I think it's too early to tell what will happen with all the misery going on in Japan. I think it's going to hurt everybody eventually. For example, my understanding is that Clarion supplies the nav systems for Ford and they have a plant in Fukushima 30 miles away from the crippled power plant as does Alpine. Depending on how much supply Ford has for vehicles that have these units, it could be another case similar to the paint-airflow sensor situation.

 

This is all speculation on my part based on what I've been reading, but it could be a possibility unless the situation changes

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I exchanged several e-mails earlier this week prior to a two hour meeting with our Ford Zone Manager related mostly to inventory issues and concerns. Ford has been very conservative in its production plans the past few years and bases its plans on "Days Supply" for each vehicle line. At the same time, Ford is relying more on Dealership advertising to help generate showroom traffic and sales. Of course, in order to make a substantial advertising investment a Dealership must have adequate inventory for the vehicle line its advertising. For the past two years our Dealership has essentially run out of inventory over the Summer months forcing us to scrap all advertising and regularly buy inventory from other dealers in order to meet demand. Our store has been breaking monthly sales records for the past 4 months compared to 3 years ago and right now our inventory is down at least 25% from where it should be going into the Spring season. Unfortunately, the situation in Japan is only going to complicate the situation.

 

At least in our Market, Ford's being so conservative with inventory and production plans is actually hurting business as it's hard to sell what you don't have! So far our March new vehicle sales are on track to be our best in probably 4-5 years. We're ready to launch a major new advertising campaign regarding our winning not only the 2010 President's Award (awarded to approximately the top 10% of Ford Dealers) but also the ONE Ford Elite Award (awarded to the aproximately top 150 Ford Dealers) and we're looking at our 3rd Summer of being very short of inventory!

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