Thread regarding Ford layoffs

Desperate move to recognize revenue?

From Auto News. Looks like some financial tomfoolery is needed for 2Q. You know Ford is pushing dealer network to buy unfinished trucks and SUV’s. As stated, what dealer would floor plan a vehicle they can’t sell. Can’t fix stupid at Ford (but you will get promoted).

DETROIT — Ford Motor Co. is weighing plans to start shipping partially built vehicles that are awaiting semiconductors or related components to dealerships around the country, a move that, if approved, would place responsibility on its retail network to complete the assembly once the chips are available.

The automaker began detailing the plans, which are not final, to some of its dealers this week, according to four people with knowledge of the discussions. Only dealers who would choose to receive the unfinished vehicles would get shipments and service technicians would be trained on how to install the chips, one of the people said. Dealerships would be compensated for slightly less than an hour's worth of labor for each vehicle, the person said.

Still unclear is whether the dealers would be responsible for the vehicles while they sit on their lots awaiting chips. Dealers are not expected to have to floorplan the vehicles before they're finished, one person said. The people asked not to be identified discussing internal company plans.

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| 1156 views | | 4 replies (last July 17, 2021) | Reply
Post ID: @OP+1bRSvOjF

4 replies (most recent on top)

Sad that after retiring from the company, I will not buy another Ford product. Too many recalls and bad management decisions that affect the end product.

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Post ID: @1vrl+1bRSvOjF

What could possibly go wrong with dealers installing missing components? Smh.

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Post ID: @1nci+1bRSvOjF

There was also a big push for those nearing the end of a lease to place an order for your next vehicle and get a $1000 rebate. I received numerous emails from our dealer to place an order. No obligation to lease the new vehicle when it comes in.

This certainly must factor into their performance reporting to show that there is strong demand for their products.

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Post ID: @lvp+1bRSvOjF

Kicking the bankruptcy can down the road. We’ve also been selling real estate to bring in cash. My understanding is we book revenue for vehicles as soon as they leave the plant, but they are “in transit” until a dealer accepts financial responsibility. That means revenue has already been recorded for the thousands of trucks sitting in parking lots. I’m not sure that the tweaking of residual values at Ford Credit will be enough this quarter.

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Post ID: @klh+1bRSvOjF

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