USA: Ford to shift towards a build-to-order system

Ford feels it can perform better if more people order their cars online.

Ford could soon shift to a build-to-order vehicle purchase system in the USA, moving away from the conventional stockpiling at dealerships.

According to a media report, Ford has noticed a change in the way Americans are purchasing new cars. Reports suggest that American shoppers who till now have been committed to buying a vehicle off a dealership lot, are now changing their purchase methods and preferring to have more online communications. Hence, Ford is now pushing more new customers to shift to the online vehicle purchase process.

The reason for this shift is said to be mainly due to the COVID-19 pandemic and the global chip shortage, both of which have affected vehicle supply to dealerships. Reports have stated that Ford feels it can perform better if more people order their cars online.

Jim Farley, CEO of Ford stated that the company is committed to going to an order-based system and keeping inventories to a 50 to 60 days' supply.

To further boost online vehicle purchase among American buyers, the company has introduced 'Ford Express Buy', which allows customers to build their vehicles, check the price and even make the transaction. Once the payment is done, customers can then wait for their cars as the dealership will then deliver the cars to their homes. The company has also introduced the 'Ford Blue Advantage', an online used cars sales platform.

Source: CarAndDriver