10 LEGAL UPDATE R. J. “JIM” SEWELL, JR. MTADA GENERAL COUNSEL Many of you may be too young to remember, although a few of the “old timers” like me will. Back in 1955, Pete Seeger wrote “Where Have All the Flowers Gone,” recorded by the Kingston Trio in 1961 and made famous by Peter, Paul and Mary in 1962. The last lines of each stanza lament “. . . oh, when will they ever learn, oh, when will they ever learn . . .” Those lines have come down through the decades and, in a different context, apply to the car business today. Recent industry news reminded me of this old tune as I read in the trade press FMC is once again elbowing its way into the retail business. Steve DaSilva reported in Jalopnick, a trade newsletter: Ford CEO Wants To Abolish The Dealership Experience As We Know It Steve DaSilva, June 2, 2022 “Ford wants to do things differently as it expands into the EV business. It’s spinning electric cars into their own sub-brand, untethered from the time-honored tradition of dealers asking, ‘What can I do to get you in this car today?’ Months after that news first came out, CEO Jim Farley is doubling down. In a speech today, the executive confirmed that under his new plan, dealerships would get rid of inventory entirely and become high-quality service centers for customers who purchased their vehicles online. In a presentation at Bernstein’s 38th Annual Strategic Decisions Conference, an event that is apparently real and not an Arrested Development plot point, Farley confirmed that Ford intends to sell EVs entirely online, with no-haggle pricing. Dealer lots full of preordered inventory would be gone, and today’s existing dealers would pivot to providing service for cars purchased online. ‘We’ve got to go to a non-negotiated price. We’ve got to go to 100% online,’ Farley said. ‘There’s no inventory (at dealerships); it goes directly to the customer. And 100% remote pickup and delivery.’” “OH, WHEN WILL THEY EVER LEARN”
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