4/26 Build Week

[Roady]

I'm just going to throw this out here for discussion. At what point does it become a option for Ford to cut these trucks loose and cancel the orders? It's been widely reported now for several months that Ford is paying millions in storage fees every month for these trucks sitting in lots. They started loosing money on these the second they parked them. How long before they write them off? Is it possible they have some sort of insurance they can collect and it actually becomes more profitable to scrap them?

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[Roady]

I really doubt that anyone at Ford with that kind of decision power is loosing any sleep over how this situation turned out.

As for the “What are they supposed to do, just lay people off?” thought. Did you forget that they have idled multiple plants weeks at a time? While that’s not technically a layoff and more of a furlough, whats another week or two? They could have just paused once they started running out of chips. Then they could have just called them all back and just produced completed trucks and we all wouldn’t be here pissed off because now our trucks are in a giant cluster pile waiting on *extra* chips that aren’t going to the production line.

And again, the people that have that kind of decision power are happy right now because the line is running and trucks are moving to dealers again. What? We have a few thousand trucks just sitting in a lot? Well, we don’t have an easy way to complete them, so just put someone on it but keep that production line running!

Just keep in mind, keeping the plants open is the number #1 priority. Those union workers get paid 75 percent of their salary even when the plants are shut down. That's alot of payroll expense.

 

[RayRay]

I really doubt that anyone at Ford with that kind of decision power is loosing any sleep over how this situation turned out.

As for the “What are they supposed to do, just lay people off?” thought. Did you forget that they have idled multiple plants weeks at a time? While that’s not technically a layoff and more of a furlough, whats another week or two? They could have just paused once they started running out of chips. Then they could have just called them all back and just produced completed trucks and we all wouldn’t be here pissed off because now our trucks are in a giant cluster pile waiting on *extra* chips that aren’t going to the production line.

And again, the people that have that kind of decision power are happy right now because the line is running and trucks are moving to dealers again. What? We have a few thousand trucks just sitting in a lot? Well, we don’t have an easy way to complete them, so just put someone on it but keep that production line running!

Exactly
Well said.
And if it wasn’t for powerful unions, there would be a lot of unemployed people right now because the big corporations don’t give a shit about their employees any more than they give a shit about their customers.

 

[ScottBB]

Well... "hind sight being 20/20" I'd say they should have leased warehouses to store them instead of abandoning them in open lots.
God knows with the effects of the pandemic there must be millions of square feet of empty warehouse space with landlords desperate for tenants, even short term.

I really doubt anyone at Ford thinks that they made the right decision doing what they did.

Yes, in hindsight there are things that could of, should of, and I would of done differently but it is hard to navigate the unknown.

 

[RayRay]

Just keep in mind, keeping the plants open is the number #1 priority. Those union workers get paid 75 percent of their salary even when the plants are shut down. That's alot of payroll expense.

And this why we have half built trucks.

 

[RayRay]

I'm just going to throw this out here for discussion. At what point does it become a option for Ford to cut these trucks loose and cancel the orders? It's been widely reported now for several months that Ford is paying millions in storage fees every month for these trucks sitting in lots. They started loosing money on these the second they parked them. How long before they write them off? Is it possible they have some sort of insurance they can collect and it actually becomes more profitable to scrap them?

What a waste that would be.
You would think that it would be much cheaper just to finish and ship them.
Sooner the better for them and us.

 

[Niterider]

And this why we have half built trucks.

And they are paying rent for multiple lots where those half built trucks are sitting AND now they need to pay a 3rd party contractor to finish those trucks.

And then there is something else that is hard to put a price on...thousands of pissed off buyers.

 

[Mhubbardva1]

Clearly there is no chip shortage if they are building and shipping trucks after the parked ones were built.
That's what pisses me off about the whole situation.

There is a shortage, the Dearborn and Kansas plants have been darkened for a few weeks because they don't have chips. But this just screws you and I who have trucks sitting in the back 40. The plants will reopen Monday with more chips, none going to the bone yard trucks. I have been in conversation with multiple Ford employees and my dealer this week. Bottom line is reps were told several weeks ago to get the pre April trucks reordered, They would likely be delivered before the boneyard trucks. There is little emphasis to get any bone yard trucks shipped before September or October.

 

[Mhubbardva1]

inventory th
So what was the alternative, shut down completely and lay people off? They kept people employed, kept them working, and did what they could. To now say, put all chips in the already finished trucks doesn't work. That makes every single truck they build take longer b/c the tire guy isn't finishing PCM's. He needs a vehicle to put tires on. If they continue making unfinished trucks, to finish the older ones, then the new ones take longer to build. At some point, you just bite the bullet and do what is best all the way around. Should they give some rebates for those who wait like x amount per month, extended warranty for issues, etc. yes probably but financially, to protect themselves and their employees, the priority has to be making the line run as normal as possible and get to the others when they can. Again, just my opinion as I am frustrated with the wait and uncertainty as well but I understand their reasoning.

Don't forget they created a perfect storm. Dealers have had little inventory that typically sells for a little over invoice. Now every vehicle available is selling with a 5K to 10K ADA. Dealers are making up the profit loss FAST!!

 

[RayRay]

There is a shortage, the Dearborn and Kansas plants have been darkened for a few weeks because they don't have chips. But this just screws you and I who have trucks sitting in the back 40. The plants will reopen Monday with more chips, none going to the bone yard trucks. I have been in conversation with multiple Ford employees and my dealer this week. Bottom line is reps were told several weeks ago to get the pre April trucks reordered, They would likely be delivered before the boneyard trucks. There is little emphasis to get any bone yard trucks shipped before September or October.

Well if the reps have told the dealers to re order then Ford and the dealers need to honour the original discounts.
I would actually prefer that but there is no way in hell I’m going to pay anywhere near MSRP.

 

[Sboyd55]

Like everyone else I have been following multiple threads on here. I don’t think I have seen any replies from the lucky few whose trucks had been delivered after sitting outside. Curious what shape they were in and if noticed any issues. (Other than the rusting of the undercarriage.)

 

[cghall77]

Well if the reps have told the dealers to re order then Ford and the dealers need to honour the original discounts.
I would actually prefer that but there is no way in hell I’m going to pay anywhere near MSRP.

I was going to say the exact same thing. Not a chance I would pay close to msrp if I had to buy the F150 again.

 

[mshipway]

It's a business and these shortages are unprecedented. Ford is going to do whatever that is cheapest for them.. as would anyone owning a business of that scale. I am sure they have a room of people running spreadsheets of costs for each scenario.. it sucks... but let's hope it starts to iron out here in the coming weeks.

 

[Mhubbardva1]

It's a business and these shortages are unprecedented. Ford is going to do whatever that is cheapest for them.. as would anyone owning a business of that scale. I am sure they have a room of people running spreadsheets of costs for each scenario.. it sucks... but let's hope it starts to iron out here in the coming weeks.

Unless you think October is coming weeks it's not. There was no consideration for loyal customers at all. Not sure that was a smart decision.

 

[Mhubbardva1]

Well if the reps have told the dealers to re order then Ford and the dealers need to honour the original discounts.
I would actually prefer that but there is no way in hell I’m going to pay anywhere near MSRP.

Ask your dealer about a COPV from the Ford rep. My dealer reordered for the same price and insured rebated were locked in. Problem is unless you jumped on this you will be waiting until September anyway for a new order.

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