Ford’s latest gamble: car buyers willing to wait weeks for their wheels. In a strategy shift, Ford wants to do more of its sales from custom orders and stock fewer vehicles on the lot.
that shoppers had little choice but to order their new wheels and then wait, sometimes for months, to take delivery.
After years of declining profits, Ford’s turnaround remains a work-in-progress. It has rebounded strongly from the earlier days of the Covid-19 pandemic when sales collapsed, a comeback driven in large part by booming new-car demand. But it still is executing a costly revamp of overseas operations and trying to overcome nagging quality problems in the U.S., factors that leave it behind rival GM in profitability.
Chief Executive Jim Farley said during the company’s earnings call in July that he wants factory orders to account for about a quarter of all sales, compared with almost none before the pandemic. That would allow Ford to operate with a 50-to-60-days supply of vehicles on dealership lots or en route to stores, compared with around 75 days historically.
A Ford dealer in Clifton, N.J. Dealers say they support the build-to-order model idea in theory, because it would lower their costs.“What if we cut back, but Chrysler and GM load their lots? And I don’t have the cars in stock?” said Ed Jolliffe, a Ford dealer near Detroit. He likes the idea of carrying fewer vehicles because it would cut financing and advertising costs, but he worries customers won’t have the patience.
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