Ford could start shipping unchipped vehicles to dealers later this year
Ford Motor Co. could start shipping unchipped vehicles to dealers around the country, sometime this year — vehicles that cannot be sold to consumers immediately but something to fill dealer lots that are growing barer by the day, the automaker told the Free Press on Monday.
When back-ordered semiconductor chips become available, Ford dealers would then insert them into components in cars that customers have selected and send them home immediately and eliminate an additional wait related to post-parts shipping.
“We’re discussing this idea with our dealers so we can gauge interest. We’re assessing and it’s still very fluid,” Ford spokesman Said Deep said. “This is a scenario we are exploring and we want to be prepared should we decide to implement, which is why we are talking to our dealers now.”
Shipping would not happen right away. If the company moves forward on the plan, shipping could happen before year’s end, Deep said.
Dealer technicians are skilled at installing parts and components, a job they do with recall orders and repairs all the time. So this latest development allows Ford to get vehicles to dealers sooner, and allows the final touches to be done on-site, Deep said.
Ford would hold the title until the vehicle is complete, so this strategy does not allow Ford to record vehicles as sold any sooner than normal, as the industry continues to navigate financial challenges amid the supply chain nightmare.
However, customers would take custody of vehicles sooner.
“Customers can see a vehicle on their dealer’s lot and when the component [that requires a semiconductor chip] is available and installed, the customer can take delivery. This works out in a way that’s positive for everybody,” Deep said. “The customer doesn’t wait for the truck to get shipped. This allows for another quality inspection after a vehicle has left the factory.”
He confirmed that the Ranger, which is built in Wayne, Mich., is the first vehicle that would be shipped unfinished.
While Ford is still working through the details, it also is exploring adding other vehicle lines, including the F-150.
Thousands of unfinished F-Series, which are currently sitting on lots around the country including Detroit, Louisville, Kentucky, and Kansas City.
Ford is holding thousands of F-Series awaiting parts, while General Motors and others have chosen to build and sell vehicles without features impacted by the supply chain.
The chips, which are made mostly in Asia, are in tight supply since COVID-19 disrupted the supply chain and the ability for people to work in factories, after demand for them rose during the COVID-19 pandemic as people bought laptops and other personal electronics that also use them. The chips go into a variety of car parts.
“We are exploring a number of different options as we work to get our customers and dealers their new vehicles as quickly as possible,” Deep said. “Dealers are excited about having vehicles in their hands.”
Dealers say they want to get vehicles into showrooms to create excitement and give people something to experience, and this latest idea creates a new solution to ongoing problems, dealers told the Free Press.