Ford Dealers Form Joint Venture to Bring Customers Direct Online Purchases
The Ford Dealer Council, with 4,200 dealer-members across the U.S., has formed an Internet-based enterprise, FordDirect.com, that will offer services to customers who want to purchase Ford brand cars and trucks online.
FordDirect’s Web site will allow customers to configure, select, price, finance, and initiate the purchase and schedule the delivery of a new car or truck from participating Ford dealers all online within minutes, 24 hours a day, seven days a week. The transaction will be completed by a local Ford dealer chosen by the customer, who can provide the necessary off-line support both during and after the sale. FordDirect.com will offer the largest representation of Ford Division dealers available online.
The new commercial enterprise will be jointly owned and supported by participating Ford Division dealers and Ford Motor Co. with an independent management team appointed by the venture’s board of directors. Trilogy Software of Austin, TX, has been selected by FordDirect to provide the technology to create a new e-commerce platform to transform the consumer buying experience.
The FordDirect management team will combine people from the Ford Division dealer body with Ford Motor Co. personnel. Ford Motor Co. will be an investor, but Ford Division dealers will retain control of the new entity. While the dealers’ participation in the venture is voluntary, the initial reaction from them has been enthusiastic, and the vast majority is expected to join. Specific percentages and other terms of the investment are not disclosed.
FordDirect will enable consumers to select specific cars or trucks with the desired equipment, color, and trim from inventories available at their preferred dealers. A special FordDirect e-price will reflect the maximum price a dealer may charge a consumer using FordDirect for a vehicle configured by the consumer.
FordDirect is expected to be fully operational in September in California, and will expand across the U.S. with full implementation throughout the country expected next year.
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