suv_guy_19 Posted September 12, 2007 Share Posted September 12, 2007 http://www.bloomberg.com/apps/news?pid=206...&refer=news Quote Link to comment Share on other sites More sharing options...
ShockFX Posted September 12, 2007 Share Posted September 12, 2007 http://www.bloomberg.com/apps/news?pid=206...&refer=news Nice. This was needed. Quote Link to comment Share on other sites More sharing options...
rmc523 Posted September 12, 2007 Share Posted September 12, 2007 Nice. This was needed. I know a few months, if not a year or so ago now (how time flies!!) my local Ft. Lauderdale LM dealer closed down. Good news though, cutting the excess, underperforming dealers. Quote Link to comment Share on other sites More sharing options...
ShockFX Posted September 12, 2007 Share Posted September 12, 2007 I know a few months, if not a year or so ago now (how time flies!!) my local Ft. Lauderdale LM dealer closed down. Good news though, cutting the excess, underperforming dealers. Too many same brand dealerships in one area and they compete on price, not product or service quality. Ford needs its dealers to be competing against Toyota/GM dealers, not each other. If the car cost the exact same at two dealers, you'd go to the one that had better service. Ford should head that way. Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 12, 2007 Share Posted September 12, 2007 http://www.bloomberg.com/apps/news?pid=206...&refer=news ford was the one responsible for too many dealerships to begin with..it was a case of the prehistoric "More Dealers will sell MORE cars" syndrome.....all they wanted to do was move THEIR metal....and it takes a guy from Boeing of all places to realize the stupidity behind THAT thinking....LESS dealers will mean more profitability to franchaises, better customer service and consequently probably a better quality product due to Ford becoming a more popular brand..... Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted September 12, 2007 Share Posted September 12, 2007 This program, as the article notes, was started -before- Mulally came on board. Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 12, 2007 Share Posted September 12, 2007 (edited) I swear...within approx a 15- 25 mile radius I have Villa Ford, Huntington Beach Ford, Tuttle Click Ford, Santa margarita Ford, Don Kott Ford ( now owned by Sonic so DOOMED ) MacPherson Ford ( just a matter of time...Autonation ), Ford Of Orange, Ken Grody, Pacific Ford...its ridiculous, at one stage Ford was giving any Thomas, Richard or Harold a franchaise along with mandating several had to be minority owned, onre good thing though is Giants like Autonation and Sonic have gottee involved and have personally ran several into the ground ( Campbell Ford in Garden grove, Huntington Beach used to be Autonation...now new ownership, Don Kott is hanging on by a thread.....seems huge corporations want to pay clerks to run stores with no hands on "car business" experience....seems not having to pay good people looks good on P & L's....micro-management 101.... Edited September 12, 2007 by Deanh Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 12, 2007 Share Posted September 12, 2007 This program, as the article notes, was started -before- Mulally came on board. in reality Rich, I question if there actually IS a program or this is just ford taking credit for a ruse....all the dealers I have heard have VOLUNTARILY closed their doors...nothing to do with Ford at all, just lack of sales and profitability to keep the doors open...... Quote Link to comment Share on other sites More sharing options...
ShockFX Posted September 12, 2007 Share Posted September 12, 2007 in reality Rich, I question if there actually IS a program or this is just ford taking credit for a ruse....all the dealers I have heard have VOLUNTARILY closed their doors...nothing to do with Ford at all, just lack of sales and profitability to keep the doors open...... If there isn't a program they had better get one going soon. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted September 12, 2007 Share Posted September 12, 2007 There -is- a program. Ford is not buying dealers outright. They're extending loans to assist consolidation and offering cash incentives. It's kind of like they're having a 'closeout sale' on dealerships. --- Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 12, 2007 Share Posted September 12, 2007 If there isn't a program they had better get one going soon. only way would be Ford Buy-outs....and then I wonder what happens to the land...does Ford just demo and resell or what? I heard bob baker is closing too...rumour is it IS a Ford buy-out.... Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted September 12, 2007 Share Posted September 12, 2007 Ford -may- be paying to buy back franchises (that may be part of the 'cash incentives' for consolidation), but they are not buying property. Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 12, 2007 Share Posted September 12, 2007 There -is- a program. Ford is not buying dealers outright. They're extending loans to assist consolidation and offering cash incentives. It's kind of like they're having a 'closeout sale' on dealerships. --- sad thing is this situation was caused thru Fords own initial greed/ ignorance...by handing out so many franchaises they basically saturated the market and I would go so far as to say cheapened their image thru forcing "loss leader advertising' wars between adjacent dealers...less dealers is a good thing, for both the dealers and their employees , the customers ( even though ultimately they will probably pay more $ in relation to invoice due to a less hostile/ competitive/ cutthroat market ) AND Ford themselves. Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 12, 2007 Share Posted September 12, 2007 Ford -may- be paying to buy back franchises (that may be part of the 'cash incentives' for consolidation), but they are not buying property. So....$$$$$ PLUS keep the land.....hmmmmmmmm.....if that is what happened i don't blame the dealer given the current state of the market.... Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted September 12, 2007 Share Posted September 12, 2007 sad thing is this situation was caused thru Fords own initial greed/ ignorance...by handing out so many franchaises they basically saturated the market You do recall Ford used to have about twice the market share they have now, right? Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 12, 2007 Share Posted September 12, 2007 (edited) You do recall Ford used to have about twice the market share they have now, right? absolutely....amazing what effects product complacency can have, was just lack of foresight.....they could have moved just as much metal thru fewer dealerships...like I said I have 9...sorry-10 ( I forgot Sunset )WITHIN 15-20 miles.....with ten eating the Pizza the slices for each is expedentially smaller..... Edited September 12, 2007 by Deanh Quote Link to comment Share on other sites More sharing options...
ShockFX Posted September 12, 2007 Share Posted September 12, 2007 You do recall Ford used to have about twice the market share they have now, right? Other brands have dealerships that average 6 times as many sales per dealship. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted September 12, 2007 Share Posted September 12, 2007 Yeah. And how many of those franchises, if you trace their history, date back to the days before freeways, when towns in So. Cal were much further apart? Trust me, if Ford was busy awarding franchises to every TD&H, it was decades ago, late 60s tops. Not in the recent past. Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 12, 2007 Share Posted September 12, 2007 Yeah. And how many of those franchises, if you trace their history, date back to the days before freeways, when towns in So. Cal were much further apart? Trust me, if Ford was busy awarding franchises to every TD&H, it was decades ago, late 60s tops. Not in the recent past. I agree....but they only have themselves to blame for the over abundance...total over saturation and like I said lack of foresight.....how can one not think that transportation needs would be catered to over the long run...and Rich...that dealer 10 miles away...is STILL 10 miles away...just easier to get to...just 10 minutes...or lets say 15 because I am going to stop and get a newspaper and see who has the best loss leader...... Quote Link to comment Share on other sites More sharing options...
ShockFX Posted September 12, 2007 Share Posted September 12, 2007 Yeah. And how many of those franchises, if you trace their history, date back to the days before freeways, when towns in So. Cal were much further apart? Trust me, if Ford was busy awarding franchises to every TD&H, it was decades ago, late 60s tops. Not in the recent past. It makes no difference why they are where they are. What matters is 10 dealerships within 20 miles is a problem. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted September 12, 2007 Share Posted September 12, 2007 lack of foresight. They failed to foresee that their market share would be halved? They failed to foresee the mobility that interstate engineers also failed to foresee (you find me -ONE- interstate that is carrying less than its design load)... I mean I'm having a darn hard time trying to get mad at people in the 60s who didn't have a clue what things would be like in 2007. You saw 2001, didn't you? Where's our Space Hilton? Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted September 12, 2007 Share Posted September 12, 2007 (edited) We got a space-case Hilton, but that's hardly the same thing. Edited September 12, 2007 by RichardJensen Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 12, 2007 Share Posted September 12, 2007 They failed to foresee that their market share would be halved? They failed to foresee the mobility that interstate engineers also failed to foresee (you find me -ONE- interstate that is carrying less than its design load)... I mean I'm having a darn hard time trying to get mad at people in the 60s who didn't have a clue what things would be like in 2007. You saw 2001, didn't you? Where's our Space Hilton? I would say YES ...they didn't foresee a market decline....no market no matter what the product remains a constant ( housing for instance )...and when you have shareholders thinking that the public will continue to love your product regardless and sign off on some abysmal designs, save a few cents here and there and cheapen things to appese stockholders ( insert product here ) it reeks of complacency, and to remain ignorant to the fact that incoming overseas product is not going to affect your share is blue hair lunacy....10 dealers in a 20 mile radius Rich...you tell me if Ford gave a rats ass about their franchaises or cared solely about themselves and just moving metal...remember they get their $ regardless.....and as for the mobility...hell this dealership is 80 odd years of age,,,,for the life of me i can't see why they didn't leave the two lane dirt/ horse buggy road as is out front..... Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted September 12, 2007 Share Posted September 12, 2007 I just can't match your indignation. I don't think you can make predictions on what the market is going to look like in 40 years. I mean, quite obviously, Ford got itself into this mess. I just find it very difficult to be mad at the individuals that did this. There aren't always 'bad guys'................. Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 12, 2007 Share Posted September 12, 2007 I just can't match your indignation. I don't think you can make predictions on what the market is going to look like in 40 years. I mean, quite obviously, Ford got itself into this mess. I just find it very difficult to be mad at the individuals that did this. There aren't always 'bad guys'................. not sure indignant is the word....but over the years there have been MANY instances where Ford has shown they do not really care about their dealers....it IS slowly getting better, they seem to finally be listening to dealer base suggestions/ complaints, this may have to do with staid ears being replaced by fresh ones...one HAS to embrace change or go the way of the Dodo...and some of the prior heirachey cared about no-one but themselves....I beleive product is the be-all...and it has to be of a quality nature....flooding the market with "Starbux" like products and folding ones arms in complacency signs a death warrant, to allow 10 dealers ( to potentially increase ones OWN profit )within a small radius OBVIOUSLY sets up price feuding to see whom wishes to post the lowest price ( record holder Ken Grody ) which in turn led to the "baits and switches" ( for wants of better words...basically dealers trying to get back some of the loss )...in turn pissed off customers, lower satisfaction yadda yadda yadda.....vicious circle/ domino effect all because of short sighted visions of grandeur ie more dealers more sales....can we say back-fire? I don't find it hard to be a little angry with that sort of stupid mentality.....you do NOT see a lexus dealer at every corner...and they seem to be doing fine.....sidebar Lincoln could be the same way if given the product.... Quote Link to comment Share on other sites More sharing options...
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