Ford plans to maneuver to non-negotiated costs for all its autos, CEO Jim Farley advised buyers yesterday. Farley didn’t place a timeframe on the choice.

The announcement got here as a part of Capital Markets Day — the primary in-person convention for buyers Ford has held since 2016.

Transfer Might Apply to All Automobiles or Simply EVs

Stories differ on precisely what Farley mentioned. The Related Press reviews that the CEO “mentioned Ford will go to non-negotiated car costs.” However the Detroit Free Press says, “Non-negotiated costs will likely be a part of enhancing the client expertise for electrical car [EV] customers,” suggesting that the coverage might apply solely to EVs.

Not The First Time Ford Has Recommended This

It’s not the primary time Farley has prompt the transfer. Final summer season, he prompt that Ford move to a Tesla-like model of selling cars only online, for fastened costs, and utilizing dealerships as native distribution and repair facilities.

Farley later told dealers he would not follow that plan after most sellers dedicated to promoting EVs for no-haggle costs.

Competing in Fewer Areas

Farley additionally advised buyers Ford would pull again from some market segments the place different automakers are doing nicely. The AP says Farley promised to “cut back funding in hypercompetitive market segments comparable to 2-row smaller SUVs.”

Ford presently sells two compact SUVs beneath the Ford identify — the Escape and Bronco Sport — and the Lincoln Corsair compact luxurious SUV. Farley didn’t announce that any of the fashions would disappear, however the announcement calls their long-term futures into query. All three have had latest updates that ought to make canceling them unlikely for a number of years.

As an alternative, the corporate seeks to promote extra of its “iconic autos,” comparable to massive pickups and the Mustang muscle automotive.

Ford has more and more targeting promoting just some merchandise and building many special editions of those. The corporate stopped making sedans completely in 2019.