Ford To Offer Insider Discounts To Buyers

Ford Motors Company would let its workers pass insider discounts to buyers who do not own any Ford car or truck

Ford Motors has started to offer a new promotion that will let the retirees and workers pass the insider discount to any consumers who don’t have a Ford truck or car, a rare move intending to boost store traffic during a time when the sales of new cars are going through a sluggish phase.

A notice distributed to the dealerships and confirmed by the spokeswoman of Ford has revealed that the Michigan based organization, whose American market share was flat in 2015, took the new measure on 8^th January and would be running it through 29^th February. Purchasers, availing the discount offered to employees- a rate usually reserved for employees and their primary family on which they can purchase a new Lincoln or Ford vehicle at a price many thousands of US dolls lesser than market price.

This has happened twice in less than 90 days. The company has stretched an insider deal for regular consumers, a move like the worker-discounts- for-all deals that got popular 10 years ago but led to a price battle that dented profits in the end.

In November, the automaker introduced a Friends & Neighbors pricing event that offered the customers same rate of discount as of suppliers and other partners. The program ended one month earlier after it failed to resonate with consumers, who were  much interested in straight up cash bonuses and zero percent financing.

Only purchasers who are provided a special PIN code from a retiree or worker could file an application for getting the discount to their procurement. The automaker has successfully posted record profits on a quarterly basis in the North American region but in 2015 its market share got reduced from 15% to 14.9% in the last year because of top seller F-150 truck’s tight supply.

Some of the analysts believe that the demand for trucks and cars in the United States would probably level off this year, after the automotive industry sold around 17.5 million record automobiles in 2015. As sales plateau, automobile manufacturers would need to rely heavily on selling incentives to ensure that buyers remain motivated.

The new pricing offer was initially reported by Automotive News. In other news, Dayton daily news has reported that Ford would invest $900 million on the transmission plant based in Sharonville. Work is already being done at the plant for tearing out older machinery and making space for the installation of new equipment as part of the millions of dollar worth investment which the automaker would make in the facility, stated official of United Auto Workers Tim Meadors.

The investment has followed a contract approved by workers of Ford and UAW’s members in November.

Tesla Motors Appoints New Senior Vice President To Lead Sales

Tesla Motors hired a new vice president for its North American sales.

The American electric vehicle manufacturer Tesla Motors has appointed a new sales head. Tesla news reported that the automaker has recruited an ex-executive, Ganesh Srivats, of the British fashion house, Burberry, as its senior vice president (SVP) of North American sales, a step indicating that CEO Elon Musk intends to expand the Californian business’s retail operations.

Since 2009, Mr. Ganesh has held retail and strategy position for the fashion firm and was recently working as its senior vice president for retail in the Americas. Tesla news today disclosed that the organization’s selling strategy differs from others, who benefit from the services of independent dealerships, as it relies on unconventional advertising schemes and internet-based selling mechanisms.

Tesla is also known for owning its retail network. A professor of marketing at New York’s Stern School of Business has welcomed the development, as he exclaimed that this makes all sense in the world. He added that the South African born entrepreneur’s company is not a vehicle manufacturing organization, but a luxury firm.

The electric vehicle pioneer’s recent decision should not surprise the stakeholders of the high-tech world, as it had previously proclaimed to recruitment new executives to head its regional sales operations. Press sources stated that CEO of the Luxury Institute, Milton Padraza, has stated that Mr. Ganesh introduces a customer center approach for businesses. He added that it is about long-term relations. 

Burberry dominates the field of developing client relationships. Tesla Motors news informed that the smartphone manufacturer, Apple, previously took a similar decision when it appointed the fashion company’s CEO, Angela Ahrendts, as head of its sales operations in 2013.

Tesla has recently stated that it intends to sell 500,000 cars by 2020, according to official sources, and it is about to introduce its Model X. Industry experts are of the view that the decision has been taken to help it to achieve its sales-related objective, as Srivats is an experienced marketing professional who has contributed to the capacity of the European organization.

It is probable that the appointment of the new executive would send a threatening message to its rivals, who might be forced to follow its footsteps. The entrance of the former Burberry SVP in the company might improve the motivation levels of its sales team, which can learn from the achievements of the entrant.

The management of the organization should now introduce the marketing strategy to the newly recruited official and try to utilize his marketing potential in the best possible manner to benefit from his qualifications and expertise. It should also refrain from repeating the similar mistakes, which has caused challenges and problems to the company, e.g. withdrawal of defected cars from the market. However, Mr. Musk seems positive about the future.