Ford CEO: We’ll Transfer to Mounted Costs

A Ford Ranger parked outside a dealershipFord 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 Might Apply to All Autos or Simply EVs

Experiences differ on precisely what Farley stated. The Related Press experiences that the CEO “stated Ford will go to non-negotiated automobile costs.” However the Detroit Free Press says, “Non-negotiated costs will probably be a part of bettering the shopper expertise for electrical automobile [EV] buyers,” suggesting that the coverage could apply solely to EVs.

Not The First Time Ford Has Urged This

It’s not the primary time Farley has urged the transfer. Final summer season, he urged that Ford transfer to a Tesla-like mannequin of promoting automobiles solely on-line, for mounted 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 effectively. The AP says Farley promised to “scale back funding in hypercompetitive market segments comparable to 2-row smaller SUVs.”

Ford at present sells two compact SUVs beneath the Ford identify — 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 current updates that ought to make canceling them unlikely for a number of years.

As an alternative, the corporate seeks to promote extra of its “iconic automobiles,” comparable to massive pickups and the Mustang muscle automotive.

Ford has more and more focused on promoting just some merchandise and constructing many particular editions of these. The corporate stopped making sedans solely in 2019.

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