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Mid-Year Pricing Actions

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DETAILS OF MID-YEAR PRICING ACTIONS

EFFECTIVE DATE
Price and Dealer Invoice changes will be effective December 23, 2020.

 

PRICE PROTECTION
2021 model units invoiced prior to December 23, 2020 will not be re-invoiced.

 

Automatic price protection will be provided on:
• Firm 2021-model fleet, retail, and demonstrator orders signed and dated on or before December 22, 2020 and received by Ford Motor Company on or before December 26, 2020.
• Fleet CPA or GPC orders will continue to be price protected to the individual customer’s contract agreement or bid date.

 

RETAIL PRICE INCREASES BY VEHICLE LINE
Effective December 23, 2020
SUVs
21MY Bronco Sport Increase All Series Prices $160 MSRP
21MY PI Utility Increase All Series Prices $215 MSRP
Trucks and Commercial
21MY F-150 Increase Max Trailer Tow Package Prices $645 MSRP
Increase Max Trailer Tow w/ Platinum 701A Prices $70 MSRP


 

Edited by ice-capades

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Posted (edited)

DETAILS OF MID-YEAR PRICING ACTIONS
2021 and 2022 model Ford and Lincoln retail price changes are on Attachment I. Ford and Lincoln vehicle line Dealer Holdback, Dealer Discounts, and Ford vehicle's FDAF Contribution Amounts remain unchanged. New price lists will be posted on www.fmcdealer.com and prices will be available through CONCEPS on June 1, 2021.

 

EFFECTIVE DATE
Price and Dealer Invoice changes will be effective June 1, 2021.

 

PRICE PROTECTION
2021 & 2022 model units invoiced prior to June 1, 2021 will not be re-invoiced.

 

Automatic price protection will be provided on:
• Firm 2021&2022-model fleet, retail, and demonstrator orders signed and dated on or before May 31, 2021, and received by Ford Motor Company on or before June 4, 2021.
• Fleet CPA or GPC orders will continue to be price protected to the individual customer’s contract agreement or bid date.

 

RETAIL PRICE INCREASES BY VEHICLE LINE
Effective June 1, 2021

Icons
21MY Bronco Sport

  • Increase Base prices $395 MSRP
  • Increase Big Bend prices $400 MSRP
  • Increase Outer Banks prices $540 MSRP
  • Increase Badlands prices $540 MSRP

21MY Mustang

  • Increase EcoBoost series prices $50 MSRP
  • Increase EcoBoost 101A/201A package prices $200 MSRP
  • Increase GT series prices $165 MSRP
  • Increase GT 301A/401A package prices $200 MSRP
  • Increase Mach 1 prices $680 MSRP
  • Increase Mach 1 700A prices $305 MSRP
  • Increase Mach 1 Elite package prices $255 MSRP
  • Increase Mach 1 Appearance package prices $250 MSRP
  • Increase Mach 1 Handling package prices $250 MSRP
  • Increase Mach 1 Full Vehicle Cover price $55 MSRP
  • Increase GT Performance package prices $205 MSRP
  • Increase all freestanding optional wheel prices prices $55 MSRP
  • Increase Recaro seat optional prices $55 MSRP
  • Increase Enhanced Security package prices $105 MSRP
  • Increase Active Valve Performance Exhuast prices $100 MSRP
  • Increase 2.3L High Performance Package prices $55 MSRP
  • Increase Engine Block Heater prices $50 MSRP
  • Increase Mini Spare Wheel & Tire prices $10 MSRP

SUVs
21MY EcoSport

  • Increase All Series prices $400 MSRP

21MY Edge

  • Increase All Series prices $500 MSRP

21MY Escape

  • Increase S Gas Series prices $670 MSRP
  • Increase SE Series prices $425 MSRP
  • Increase SEL Series prices $300 MSRP
  • Increase Titanium Series prices $300 MSRP

21MY Expedition

  • Increase All Series prices $600 MSRP

21MY Explorer

  • Increase All Series prices $250 MSRP

Trucks and Commercial
21MY Ranger

  • Increase All Series prices $250 MSRP

22MY Super Duty

  • Increase All Series Prices $250 MSRP

21MY Transit

  • Increase All Series Prices $250 MSRP

22MY Transit Connect

  • Increase All Series prices $250 MSRP
  • Increase Composite Bulkhead price $100 MSRP
  • Increase Composite Bulkhead with Window price $125 MSRP

 

Lincoln
21MY Corsair

  • Increase Premium Package prices $750 MSRP
  • Increase Destination and Delivery prices $100 MSRP

21MY Nautilus

  • Increase Reserve prices $140 MSRP
  • Increase Destination and Delivery prices $100 MSRP

21MY Aviator

  • Increase Base prices $470 MSRP
  • Increase Livery prices $470 MSRP
  • Increase Reserve prices $475 MSRP
  • Increase Black Label prices $480 MSRP
  • Increase Grand Touring prices $475 MSRP
  • Increase Black Label Grand Touring prices $480 MSRP

22MY Aviator

  • Increase Base prices $470 MSRP
  • Increase Livery prices $470 MSRP
  • Increase Reserve prices $905 MSRP
  • Increase Black Label prices $480 MSRP
  • Increase Grand Touring prices $475 MSRP
  • Increase Black Label Grand Touring prices $480 MSRP

21MY Navigator

  • Increase Base prices $520 MSRP
  • Increase Reserve prices $525 MSRP
  • Increase Black Label prices $530 MSRP
Edited by ice-capades
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I know that I posted a message recently about Ford making big changes to it's incentives program. Due to the impact of the microchip shortage on production and distribution, Ford's been reducing and/or eliminating incentives to reflect the "Supply vs. Demand" situation.

 

The whole rebate scenario didn't exist until the Spring of 1986 when the old General Motors introduced retail rebates to increase sales and clear out inventory causing the rest of the industry to follow suit in order to remain competitive. Over the years, customers got so accustomed to the rebates that even a slight reduction in rebates caused sales to drop as customers waited for a better/increased incentive on the vehicle they wanted. The constant rebates reinforced customers' opinions that the product was overpriced, reinforcing the continued need for the OEM's to offer rebate incentives. 

 

As of yesterday, Ford has basically eliminated the standard Retail Customer Cash rebates on most vehicle lines with the exception of the following vehicle lines. The examples below are for the New York Region only.

  • 2021 Transit Passenger Van - $500
  • 2021 Transit Van - $500
  • 2021 Transit Connect Van - $500
  • 2021 Transit Connect Wagon - $500

The primary focus now is on providing Retail Trade-In Assistance Bonus Cash to existing customers. 

 

Hopefully this will lead to a more stable pricing scenario going forward, with far less use of rebates and incentives, and an opportunity for Ford to actually increase the potential profit margin (MSRP vs. Dealer Invoice). 

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12 minutes ago, ice-capades said:

 

As of yesterday, Ford has basically eliminated the standard Retail Customer Cash rebates on most vehicle lines with the exception of the following vehicle lines.

 

 

Ice, Thank you.  I saw that yesterday, when I ran the numbers on an Explorer vs Ranger comparison.  Thankfully, I'm still Z-Plan eligible, so that helps.

 

HRG

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Price increases on non-existent cars.  Beginning to wonder if I ordered a 2023 model.  Many announced dates... all missed.  Are schedules being announced to keep stock prices from collapsing?  You would think companies as large as Ford would be able to get enough information to set realistic schedules buyers could depend on by now.

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Ford was smart to take a modest (in most cases less than 1%) price increase and reduce rebates instead. It was also smart to in many cases make the customer order rebate in many cases larger than the "buy from dealer stock" rebate to encourage orders rather than customers shopping the inventory for bargains. Ford is setting a good example by promoting an orderly market, hopefully some of the greedier dealers and businesses in general will follow Ford's example. And tepley3, I agree- Ford and the other makers need to improve the ordering process to produce transparent and predictable order fullfillment.

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Some people just won’t buy without a rebate no matter the price.  They think it means they got a better price but sometimes you actually pay more for the one with the biggest discount depending on how much it was marked up to begin with.

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25 minutes ago, akirby said:

Some people just won’t buy without a rebate no matter the price.  They think it means they got a better price but sometimes you actually pay more for the one with the biggest discount depending on how much it was marked up to begin with.

 

My guess is that we won't see a reduction in MSRP, so the elimination of rebates should result in greater profit per vehicle, but possibly at the expense of volume.

 

HRG

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curious....raise prices on cars dealers most likely wont get....well at least until the 2022s arrive and this whole chip debacle has been rectified. I was chuckling last night at all the Bronco Sport Ads Im seeing on the TV. No one I know has any....and wont for at least a month and a half....CRAZY...they should change all their adds to COMING SOON...

 

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4 minutes ago, tepley3 said:

Or. Coming soon . . . Maybe.  For truth in advertising 😉


I know you’re just venting but give it a rest.

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39 minutes ago, Deanh said:

curious....raise prices on cars dealers most likely wont get....well at least until the 2022s arrive and this whole chip debacle has been rectified. I was chuckling last night at all the Bronco Sport Ads Im seeing on the TV. No one I know has any....and wont for at least a month and a half....CRAZY...they should change all their adds to COMING SOON...

 


They can certainly place orders, and while production may be reduced in the coming months they will be building a lot of vehicles.

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48 minutes ago, HotRunrGuy said:

 

My guess is that we won't see a reduction in MSRP, so the elimination of rebates should result in greater profit per vehicle, but possibly at the expense of volume.

 

HRG


It’s actually the opposite.  Reduced volume is actually driving the higher prices.  And they’ve already increased MSRP in addition to cancelling rebates.  Once volume returns to normal then we’ll see if reductions are necessary to maintain volume.  In some cases Ford may keep prices higher and sacrifice volume.

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7 minutes ago, akirby said:


They can certainly place orders, and while production may be reduced in the coming months they will be building a lot of vehicles.

frustrating from our side especially...I have had orders in for over 4 1/2 months on some lines...and they are yet to be given vin numbers....its going to be "hang on, the rides going to be a tad rough..." My wifes Bronco Sport , ordered Feb 1 was started on 3 days ago...yet I still see those bloody ads....lol....messin with me....

 

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7 minutes ago, akirby said:


It’s actually the opposite.  Reduced volume is actually driving the higher prices.  And they’ve already increased MSRP in addition to cancelling rebates.  Once volume returns to normal then we’ll see if reductions are necessary to maintain volume.  In some cases Ford may keep prices higher and sacrifice volume.

double edged sword....sell less with less subsidy....that's from Fords standpoint. Sell less for MSRP....that's from the Dealership styandpoint….although theres going to be basically ZERO inventory for the next 2 months...or more....so roads going to get bumpy....not looking forward to the next few at all.... 

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13 minutes ago, akirby said:


They can certainly place orders, and while production may be reduced in the coming months they will be building a lot of vehicles.

only issue with placing orders is letting people know it could be 14 or more weeks and basically attempting to let them know its still at MSRP....or trivial savings...guesstimating allocation is a nightmare on top of all the other issues.

 

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31 minutes ago, Deanh said:

only issue with placing orders is letting people know it could be 14 or more weeks and basically attempting to let them know its still at MSRP....or trivial savings...guesstimating allocation is a nightmare on top of all the other issues.

 


Oh I’m not downplaying the inventory situation.  It sucks for everybody.  But given the current situation what Ford is doing with pricing makes sense.

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36 minutes ago, akirby said:


Oh I’m not downplaying the inventory situation.  It sucks for everybody.  But given the current situation what Ford is doing with pricing makes sense.

and deflecting from the issues with releasing all these debuts....lol...Bronco, Lightning, Mach E GT, Maverick...….sneaky ( wheres the emoji banking his head against the wall )

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9 hours ago, Deanh said:

double edged sword....sell less with less subsidy....that's from Fords standpoint. Sell less for MSRP....that's from the Dealership styandpoint….although theres going to be basically ZERO inventory for the next 2 months...or more....so roads going to get bumpy....not looking forward to the next few at all.... 

more like sell what they can produce with little or no subsidy.  Ford is production constrained right now.  Firm customer orders helps manage allocation of scarce resources.  Ordering far in advance has worked for Tesla.  Ford is trying it now and I expect it to become more common.

 

Dealers will need to rely on getting orders instead of selling from inventory.  It is a paradigm shift that could lead to better profits as dealers won’t have a large floor plan expense.

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Selling for MSRP is an unsustainable goal... Before the pandemic and material shortages we were already pushing the limits of affordability with 7 year loans to drive the payments down to anywhere close to buyers ability to pay. Might work for a premium brand, but this is Ford...

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13 minutes ago, GearheadGrrrl said:

Selling for MSRP is an unsustainable goal... Before the pandemic and material shortages we were already pushing the limits of affordability with 7 year loans to drive the payments down to anywhere close to buyers ability to pay. Might work for a premium brand, but this is Ford...

 

That's a bunch of hooey, MSRP isn't the problem, it's peoples ability to shop within their means.  Would I like to have a King Ranch in the driveway, sure.  But I'm not going to pay for luxury and features that I don't need.  Shoppers are too busy trying to impress their neighbors.

 

HRG

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Only a few months ago customers expected and got 20% off list on full size pickups, MSRP was a fictional price nobody paid and served mostly to make it look like the customers were getting huge discounts. If a customer found a mid level trim F150 for ~$40k a few months ago, they'll balk at $50k for the same F150, and does Ford really want to finance $50k F150s for customers whose income will only support a $40k F150? And while Ford has the discipline to minimize price increases so invoice if not MSRP becomes the real transaction price, some of the dealers have no such discipline and will chase away customers with MSRP+"Additional Dealer Markup" demands.

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41 minutes ago, GearheadGrrrl said:

If a customer found a mid level trim F150 for ~$40k a few months ago, they'll balk at $50k for the same F150,

 

Not if they want or need to buy that truck today.   If they don't buy it for $50K somebody else will due to extremely low inventories.

 

Implying that Ford doesn't know exactly what it's doing with F series pricing is hilarious considering it's been the best selling vehicle (not just truck) in the US for over 40 years.

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24 minutes ago, akirby said:

 

Not if they want or need to buy that truck today.   If they don't buy it for $50K somebody else will due to extremely low inventories.

 

Implying that Ford doesn't know exactly what it's doing with F series pricing is hilarious considering it's been the best selling vehicle (not just truck) in the US for over 40 years.

That assumes an extremely loyal Ford customer in a big hurry. Within 50 miles of my rural abode are 50+ new pickups, full size Chevys and Rams and for the Ford loyalist a Ranger starting around $40k and the cheapest F150 is $51k. 

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21 minutes ago, GearheadGrrrl said:

That assumes an extremely loyal Ford customer in a big hurry. Within 50 miles of my rural abode are 50+ new pickups, full size Chevys and Rams and for the Ford loyalist a Ranger starting around $40k and the cheapest F150 is $51k. 


You’ll pay close to MSRP for any of those trucks as well; short of a Nissan that does have some discounts on them. Dealers are getting the then MSRP on 3 year old trucks with low mileage today. 

 

The latest place for inventory is going on swap a lease and buying leases out. 

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