A memo issued to dealers of Ford's Select group, a group of small rural dealers, illustrates the high hopes placed on the 2009 Ford Flex crossover SUV to help the ailing Ford brand and dealership sales. The memo was sent out to Select dealers on July 30 from Steve Woessner, Select regional manager, and showed how greatly dealers wanted to place a Flex in their showrooms.
Ford started advertising the Flex in June, and preliminary research showed the Flex would have most interest in the following seven metropolitan areas: New York, Washington, Detroit, Atlanta, Orlando, the Southwest, and California. According to Ford spokesman Jay Ward, "Every dealer wants his hands on a hot product as soon as possible. When they don't get it right away, they feel left out. But the cars are coming -- just not quite as fast as they might like. By having new product and advertising behind it, dealers think the product can generate showroom traffic for them. [Customers] may not buy a Flex, but they may buy a Taurus X or an Edge. If you see cars or advertising for cars, you want to piggyback off that and get people into the dealership."
The memo reassured dealers that everyone would get his fair share of the Flex. Chuck Spaeth, owner of Chuck Spaeth Ford in Sleepy Eye, Minnesota, and part of the Select dealer council, confirmed the memo serves its purpose and that there is positive communication between Ford and the Select dealers: "They want to work with the Select dealers and make sure they have one Flex before some of these other dealers get two, or three."
Ford expects annual sales of the Flex, dubbed "the people-mover," to range from 75,000 to 100,000, and its launch is considered one of the most crucial ones of 2008. The Flex will be built at Ford's Oakville, Ontario, plant, where the Edge and Lincoln MKX are also built. If sales go as well as projected, an extra 350 workers on a third shift will increase Flex production. All dealers are expected to be offered their allotments of the Flex by September, the time of the national launch.
COPY OF MEMO
June 30, 2008
To: All Ford Select Dealers
In recent weeks I have received calls and e-mails from many of you expressing your concerns over the rollout of allocation for the 2009 Ford Flex.
I'd like to take this opportunity to address some of the actions being taken by Ford, and more specifically the Select Dealer Region to ensure that we have an executable coverage plan for the Select Dealers.
The Division's initial launch strategy for the Flex consisted of seven target regions: New York, Washington, Detroit, Atlanta, Orlando, Southwest, and California. These regions are supporting the launch through a Tier II advertising campaign. To date, we have been able to offer every Select Dealer in these seven regions a startup unit.
In September the Flex will be launched nationally in the 10 remaining regions. It is our intention to offer every Select Dealer in the country his startup allocation by the September production period. We've also been given the opportunity to schedule all verifiable retail orders above and beyond the Region's earned allocation.
As we move into the fourth quarter, production of the Flex will ramp up, and we fully expect our allocation numbers to match our sales. It is imperative that we have a successful Flex launch to ensure we earn our fair share of allocation.
I appreciate your continued support and look forward to the opportunities this exciting new product presents to the Ford Motor Company and its dealers.
Sincerely,
[Signed]
Steve Woessner
Select Regional Manager
Source: Automotive News (subscription required)