‘We have back orders on everything’
And this is why Ford, General Motors, Fiat Chrysler and the overall auto industry are adding production shifts to ramp up their factories as quickly as possible. Dealers noted that the process hasn’t been without challenges, including disruption at Ford plants. Getting parts from Mexico has caused delay, too.
“Dude, we’re rocking,” said Thad Szott, co-owner of Szott Auto Group in White Lake Charter Township. “The internet leads are coming in at a pace where we’re almost struggling to keep up. With Ram Truck and the Jeep Grand Cherokee Limited, we’re definitely concerned about having enough inventory versus demand.”
He said his customers so love the new delivery model, where everything is done at the buyer’s home, he isn’t sure if many folks will return to dealerships.
Brian Carroll of Brian Carroll Automotive Group in Macomb Township,
Michigan, is seeing the same thing in his work as a car concierge who partners with different dealerships. “Chevy Silverado, Dodge Ram and Jeep Compass are very tough. The pickup situation, all of it, including GMCs. We’re also having a tough time with the Chevy Blazer.”
He was happy to find Leaman the Equinox she wanted almost immediately.
“Lack of inventory won’t be a longterm problem provided Mexico gets online, but it will delay some sales for MayJuly perhaps into later months of 2020,” said David Whiston, equity strategist of U.S. autos for Morningstar Research Services.
Inventory disruption is the price to pay when production drops 100% and buying drops only 50%, said Bernard Swiecki, senior automotive analyst at the Center for Automotive Research in Ann Arbor, an industry think tank. “We are refilling that pipeline. Problem is, there’s a lag.”
Karl Brauer, executive editor of Kelley Blue Book, said, “We’re watching kind of a control-alt-delete effect on the entire automotive system. The power cord got pulled and it’s like a computer that has to start all over again. The supply system, production, distribution – all these things have to be reset.”
As a result, he said, car shoppers may need to look outside their ZIP code. “Expand your search. You may want to spend $400 on travel and save $1,200.”
Supplies of the Ford F-150, the bestselling pickup since the beginning of time, is making dealers a little nervous.
“We sell 90 F-150s a month and 30 to 40 Super Dutys,” said Jeff King, vice president and general manager at Bozard Ford Lincoln in St. Augustine, Florida.
King is waiting on more than 500 vehicles to replenish the inventory at his dealership. Customers have placed orders for a dozen of those – highly sought Ford Explorers, F-150s, Super Duty trucks and Lincoln Aviators.
Meanwhile, King has another 600 orders, most of which are for Police Interceptor SUVs and Super Duty trucks used for utility work and construction in municipalities throughout Florida.
Ford dealers say the appetite for pickups is as strong as ever.
Chad Wilson, general manager of Wilson Ford and Midland Ford in Michigan, said: “We figure the F-150 shortage is going to come a little later. Where our stores normally sell 80 new cars in a month, 40 will be the F-150. You can go from having too much F-150 to not enough in two weeks.”
But the F-150 supply isn’t the only concern. He has about 20 Ford Explorer SUVs on back order, about half a dozen Ford Edge orders.
“We’ve been putting in orders in March, April and May, most of which haven’t started production,” Wilson said.