Ford plans to maneuver to non-negotiated costs for all its automobiles, CEO Jim Farley instructed traders yesterday. Farley didn’t place a timeframe on the choice.
The announcement got here as a part of Capital Markets Day — the primary in-person convention for traders Ford has held since 2016.
Transfer Could Apply to All Autos or Simply EVs
Stories differ on precisely what Farley mentioned. The Related Press reviews that the CEO “mentioned Ford will go to non-negotiated car costs.” However the Detroit Free Press says, “Non-negotiated costs shall be a part of enhancing the client expertise for electrical car [EV] customers,” suggesting that the coverage might apply solely to EVs.
Not The First Time Ford Has Prompt This
It’s not the primary time Farley has instructed the transfer. Final summer time, he instructed that Ford transfer to a Tesla-like mannequin of promoting vehicles solely on-line, for fastened costs, and utilizing dealerships as native distribution and repair facilities.
Farley later instructed sellers he wouldn’t comply with that plan after most sellers dedicated to promoting EVs for no-haggle costs.
Competing in Fewer Areas
Farley additionally instructed traders Ford would pull again from some market segments the place different automakers are doing properly. The AP says Farley promised to “scale back funding in hypercompetitive market segments corresponding to 2-row smaller SUVs.”
Ford at the moment sells two compact SUVs below the Ford title — the Escape and Bronco Sport — and the Lincoln Corsair compact luxurious SUV. Farley didn’t announce that any of the fashions would disappear, however the announcement calls their long-term futures into query. All three have had latest updates that ought to make canceling them unlikely for a number of years.
As a substitute, the corporate seeks to promote extra of its “iconic automobiles,” corresponding to giant pickups and the Mustang muscle automobile.
Ford has more and more targeting promoting only a few merchandise and constructing many particular editions of these. The corporate stopped making sedans solely in 2019.
