Ford Australia is not expected to adopt a fixed-price sales model, even though the automaker will pursue such a strategy in some markets.
As part of a significant shift in its business to a greater focus on electric vehicles, Ford has split its business into two distinct 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 dealership Byrne Ford says this overhaul will prompt dealerships in certain countries to sell vehicles at fixed prices with zero physical inventory in smaller showrooms. Ford Australia has indicated it will not go down the same route.
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Byrne Ford notes that the 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 allows dealers to better serve their customers and communities, providing the car manufacturer with a competitive advantage and ensuring dealers can focus on the needs of their customers.
Fixed-price sales models typically lead to consumers paying more for new cars as they are unable to negotiate the final selling price. Honda caused controversy in Australia in mid-2021 when it adopted a fixed-pricing model, leading to a spike in the prices of the company’s models.
Under these agency models, dealers are paid a flat fee by the car manufacturers and the prices are set by the automaker, resulting in higher transaction prices for consumers.
