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Heavy Truck Dealer Lawsuit


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http://detnews.com/article/20110909/AUTO01/109090442/1148/AUTO01/Ford-asks-court-to-reverse-$2-billion-award-to-truck-dealers

 

I figured Ford might loose this one, but I am surprised at the size of the judgement. Working for a large Ford heavy truck customer during those years, I did see some things that looked a bit suspicious from time to time, like why certain dealers seemed to be getting the bulk of low bid fleet orders, but since I wasn't in procurement and some dealers are always more agressive than others, I didn't think anything of it. The lawsuit covers 1987 up through the end of Ford's heavy trucks.

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Interesting-and the entire business (class 7 and 8) was sold for 300 MILLION! I would have to say, this is a very complicated issue. Back when I was buying big Fords, we did business with a few of the Northeast dealers. Two of them are no longer in business. We also were a "national account" and I had Ford people calling on me on a regular basis. In addition, if my memory is correct, there were also dealers that were "dealer development" locations which I think meant Ford had the money in them.

 

In any case, when I think of our relationship with say Mack, in which we were a true "national account" and the only people we dealt with when it came to sales were Mack employees, the Ford situation was far more complicated.

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Interesting-and the entire business (class 7 and 8) was sold for 300 MILLION! I would have to say, this is a very complicated issue. Back when I was buying big Fords, we did business with a few of the Northeast dealers. Two of them are no longer in business. We also were a "national account" and I had Ford people calling on me on a regular basis. In addition, if my memory is correct, there were also dealers that were "dealer development" locations which I think meant Ford had the money in them.

 

In any case, when I think of our relationship with say Mack, in which we were a true "national account" and the only people we dealt with when it came to sales were Mack employees, the Ford situation was far more complicated.

 

It did seem to me that there was a lot going on with Ford fleet sales. There was a very small local dealer near me that always used to show up on the sales charts for most successful Ford dealers. I was told that one of the national rental fleets was buying huge numbers of cars through that store. I don't think the cars were even being PDI'ed at that dealer, they were going straight to the rental agency.

 

We bought a lot of GMC's back in the day, and they all came out of the Los Angeles Truck Center, a GM owned dealership.

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It did seem to me that there was a lot going on with Ford fleet sales. There was a very small local dealer near me that always used to show up on the sales charts for most successful Ford dealers. I was told that one of the national rental fleets was buying huge numbers of cars through that store. I don't think the cars were even being PDI'ed at that dealer, they were going straight to the rental agency.

 

We bought a lot of GMC's back in the day, and they all came out of the Los Angeles Truck Center, a GM owned dealership.

We bought GMC's too, although I was not in the staff job then that handled those-I do remember though that we had a GM employee that was our national accounts rep. I was a field operations mgr then and I got one of the early Generals at one of my terminals- we had it for one year for a buck! Nice truck- huge improvement over the "J"s but by then we started going down the Freightliner conventional road.
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This has turned into a big stonewalling thing over the years. When this started it was just an issue between one dealer in Youngstown and Ford. After things kept being swept under the carpet for a while, the class action came about to get things moving. A big mess.

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This has turned into a big stonewalling thing over the years. When this started it was just an issue between one dealer in Youngstown and Ford. After things kept being swept under the carpet for a while, the class action came about to get things moving. A big mess.

I'm sure you are correct-and as always, the only winners will be the lawyers involved.
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