R ADMs -> Future dealer model

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drtibrd

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Caught this from the Ford earnings call:

“All right. Appreciate that, Jim. Just one follow-up on the dealers. They're having an amazing time.

Their new gross margins have more than tripled, and they're making dealer grosses that are, in many cases, higher than what you're making on selling the product, right? Like they're making more money selling the product that you -- the margin you're making on actually making the product.”

Does not seem that in the short term the ADMs are going away; however, the future direct to consumer mode is gaining steam. I understand this is already the case with the MachE and the Lightning. Sad we can’t order an R direct from their website.
 

GreenLantern

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ADMs will never go away.

They once only applied to weird limited edition supercars.

Then they started to apply to run of the mill Wranglers.

Once you open this box, you can't close it.
 

TheButcher

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I've had a sneaking suspicion that manufacturers are fine with dealers gettting the blame for ADMs so that it makes the direct to consumer model more appealing to consumers. Let the dealers get fat for awhile, and then pull the plug. Consumers will be grateful they can order without ADM, and the manufacturers look like knights in shining armor for protecting the consumer from dasterdly dealers who have been gouging consumers. Just a theory of course...
 

Jonesky

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They (manufacturers) are opening the door for competition. Unless they collude to reduce production to keep prices high. We’ll see how this plays out in the market place.
 

New recaros

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I've had a sneaking suspicion that manufacturers are fine with dealers gettting the blame for ADMs so that it makes the direct to consumer model more appealing to consumers. Let the dealers get fat for awhile, and then pull the plug. Consumers will be grateful they can order without ADM, and the manufacturers look like knights in shining armor for protecting the consumer from dasterdly dealers who have been gouging consumers. Just a theory of course...
I think Ford saw the ADM’s the dealers were adding and decided they were going to get their own on the Raptor R. I find it hard to believe that it costs Ford more than a few thousand dollars to add the V8. They are simply exchanging one part for another.
 
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HighwaySentinel

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ADMs will never go away.

They once only applied to weird limited edition supercars.

Then they started to apply to run of the mill Wranglers.

Once you open this box, you can't close it.
You can go back further than that to when Chrysler produced the PT Cruiser. For some time, people were paying ADM on those. What a sweet ride those were. lol
 
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