Ford Australia will not adopt a fixed-price sales model

Ford Australia is unlikely to adopt a fixed-price sales model, although the automaker will pursue such a strategy in some markets.

As part of a significant shift in its business towards a greater focus on electric vehicles, Ford split its business into two separate divisions. The first, Ford Blue, will focus on the company’s combustion engine vehicles while the second, Ford Model e, will focus on its fleet of electric vehicles.

Brisbane-based dealer Byrne Ford says the redesign will encourage dealers in some countries to sell vehicles at fixed prices with zero physical inventory in smaller showrooms. Ford Australia indicated that he will not take the same path.

Lily: 2023 Ford Everest Now Offers Sport RWD Down Under Variant

Byrne Ford notes that dealerships in Australia serve as the public face of the company and play an important role in connecting customers and the Ford brand. This close relationship enables dealerships to better serve their customers and communities, providing the automaker with a competitive advantage and enabling dealerships to focus on the needs of their customers.

Fixed-price sales models generally lead consumers to pay more for new cars because they are unable to negotiate the final sale price. Honda causes controversy in Australia in mid-2021 when it moved to a fixed pricing model, causing the company’s model prices to spike.

Under these agency models, dealerships receive a flat fee from automakers and prices are set by the automaker, resulting in higher transaction prices for consumers.

About the author