Ford Credit Aims to Curb Markups on the F-150 Lightning

Unfortunately not going to curb anything. It has now become business as usual at almost all dealers except one's like tesla that just take orders. Only market resistance or normal supply chain numbers will change it now.

As long as customers can finance vehicles with those markups through other banks/credit unions, Ford Finance is just losing financing revenue to their competition. As long as dealers don't bait and switch or renege on agreed pricing, they are free to sell at any price and Ford can do nothing about it. The only possible solution would be to negotiate new franchise agreements with Ford E, if they think they have the leverage, or if dealers don't sue for breach of contract for a "phony" corporate split.

patmurphey said:

As long as customers can finance vehicles with those markups through other banks/credit unions, Ford Finance is just losing financing revenue to their competition. As long as dealers don't bait and switch or renege on agreed pricing, they are free to sell at any price and Ford can do nothing about it. The only possible solution would be to negotiate new franchise agreements with Ford E, if they think they have the leverage, or if dealers don't sue for breach of contract for a "phony" corporate split.

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Another possibility is that Ford raises the prices of MSRP: This is exactly what Tesla has done: they see the market and raise prices because of demand.

If Ford sees that the actual value of the MachE is MSRP + $4,000, they will raise the MSRP by $4,000. Ford will capture that profit and take it from the dealer.

JTK44 said:

Another possibility is that Ford raises the prices of MSRP: This is exactly what Tesla has done: they see the market and raise prices because of demand...

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Demand AND anticipated supply chain inflation.

Deliveries of today's orders go out as far as Feb next year. That creates a dilemma for Ford and OEMs - Some cars are available at dealers, and some can be ordered with long waits for production. Customers won't be happy ordering a car with a higher MSRP than a car on the lot. It pretty much limits MSRP increases to new model years and mid-year upgrades, but the higher MSRP then has to include at least a perception of added value. Tesla's no dealer approach avoids the conflict with current delivery prices compared to new orders.