Still struggling with chip shortages, Ford is planning to ink a controversial deal to deliver "dead" vehicles to its dealers and pass along the burden of fixing them in the process.
According to our source, an agreement will be sent out to dealers that agree to get "dead” vehicles delivered. These are new units have been built, but without semiconductor chips and the chips will need to be installed once they are available.
The details have not been worked out.
Ford is hoping to clear out their overcrowded storage lots and is suggesting that dealers take deposits on these "dead" vehicles, completing the sales once new semiconductors can be sourced.
The request is a big ask for dealers as, according to our source, this new agreement won't include details on what Ford will pay the dealerships to complete the vehicles. And it could be significant.
Information around timing is more clear with Ford telling its dealers it won't be back to 100% production until the 2nd quarter of next year and hope to be at 75% by end of this year.
News and the agreement is being presented to Ford dealers today during a mandatory dealer conference call.
According to our source, an agreement will be sent out to dealers that agree to get "dead” vehicles delivered. These are new units have been built, but without semiconductor chips and the chips will need to be installed once they are available.
The details have not been worked out.
Ford is hoping to clear out their overcrowded storage lots and is suggesting that dealers take deposits on these "dead" vehicles, completing the sales once new semiconductors can be sourced.
The request is a big ask for dealers as, according to our source, this new agreement won't include details on what Ford will pay the dealerships to complete the vehicles. And it could be significant.
Information around timing is more clear with Ford telling its dealers it won't be back to 100% production until the 2nd quarter of next year and hope to be at 75% by end of this year.
News and the agreement is being presented to Ford dealers today during a mandatory dealer conference call.