Biker16 Posted August 14, 2006 Share Posted August 14, 2006 Ford will slash dealer corps Plan targets 18 metro markets Amy Wilson | | Automotive News / August 14, 2006 - 6:00 am Trying times The average number of new vehicles sold annually has tumbled for Ford-brand dealers and soared for Toyota-brand dealers. BRAND 2005 2000 % change Ford 696 873 –20.3 Toyota 1,613 1,179 36.8 Source: Automotive News Data Center DETROIT - Ford Motor Co. is finishing a plan to slash the number of its domestic-brand dealerships in 18 major metropolitan markets. The list of markets focuses on the Northeast and the Midwest, dealer and Ford sources said. Markets targeted for cuts include Chicago, Boston, New York and Philadelphia. Los Angeles and San Francisco also are on the list, which wasn't shar http://www.autonews.com/apps/pbcs.dll/arti...28&refsect= Quote Link to comment Share on other sites More sharing options...
Roadrunner Posted August 14, 2006 Share Posted August 14, 2006 Couldn't get in, as it's a subscriber area. But, interesting. I have an idea for who to get rid of here. Quote Link to comment Share on other sites More sharing options...
swenson88 Posted August 14, 2006 Share Posted August 14, 2006 Couldn't get in, as it's a subscriber area. But, interesting. I have an idea for who to get rid of here. I'm surprised the dealers haven't sold their dealerships already. You figure in the past few decades the marketshare that Ford has lost has meant that the number of vehicles sold per dealership has drastically plummetted. How are so many still in business? If I was a dealer I would have switched over to some import brand a decade or so ago. Quote Link to comment Share on other sites More sharing options...
igor Posted August 14, 2006 Share Posted August 14, 2006 I'm surprised the dealers haven't sold their dealerships already. You figure in the past few decades the marketshare that Ford has lost has meant that the number of vehicles sold per dealership has drastically plummetted. How are so many still in business? If I was a dealer I would have switched over to some import brand a decade or so ago. they are barely in bussiness. many Ford dealerships are worth little more than their real estate anbd inventory - because thye have close to zero in profits. this is a great move... another one of those - why did it take so long - moves like the logner warranty. I m excited, and hopefully people here will acknowledge the importance of this move... there are no easy ways to fix near term pipeline - medium term (3+ years) has been fixed.. not it's time to take the important organizational changes - Wizard is all over BOF talking about new work rules, possible company wide buyouts, accelerated plat closures, q-whoever talks about possible significant weeding out of the PD department, and here Ford is cutting the fat in the dealers. . IT seems Ford is addresing all the areas .... and for those that say "except executives" well the fact that this is happening is merit to the executives - so they shoulddefinitely stay. Igor Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted August 14, 2006 Share Posted August 14, 2006 At least Ford is targeting the areas that are overdealered, instead of trying to force small rural dealerships out of business. Still, this is going to be expensive. Quote Link to comment Share on other sites More sharing options...
grbeck Posted August 14, 2006 Share Posted August 14, 2006 (edited) Here in the Harrisburg area, there are four large Ford dealers located either within Harrisburg, or within one of the "inner ring" suburbs. Another two dealers are located in smaller towns (Hershey, Dillsburg) just on the outskirts of the Harrisburg metropolitan area. By contrast, there is one Honda dealer within Harrisburg, and two located in the outer suburbs (one on the east, the other on the west). That seems like a lot of Ford dealers, especially considering that many of the small towns around central Pennsylvania also have their own Ford dealer. Edited August 14, 2006 by grbeck Quote Link to comment Share on other sites More sharing options...
OAC_Sparky Posted August 14, 2006 Share Posted August 14, 2006 Maybe this will give an incentive for those dealers who wish to remain to get with the times. Sadly, when you split a pie 8 ways everyone gets a small piece, and everyone is a little hungry. The analogy means that a lot of dealerships get a little shabby and long in the tooth - makes it harder to compete with newer import dealerships.... Quote Link to comment Share on other sites More sharing options...
IPITYDAFOOL VIRUSFREE Posted August 15, 2006 Share Posted August 15, 2006 At least Ford is targeting the areas that are overdealered, instead of trying to force small rural dealerships out of business. Still, this is going to be expensive. There are at least 600 dealers in those areas. Some Have 1 per town. 600 is a under estimation for those highly populated areas. Quote Link to comment Share on other sites More sharing options...
igor Posted August 15, 2006 Share Posted August 15, 2006 There are at least 600 dealers in those areas. Some Have 1 per town. 600 is a under estimation for those highly populated areas. but it is a different situation .. I Would asume many small towns have loyalties to their Ford dealers.. sometimes, because it is stimply 40 miles closer than the next one. In big cities, we are all about the lowest price.. I have about 5 ford, anf 6 Dodge dealers trying to fight over my dollar in the grater philly area... that is what is such a big problem .. most of these dealers are not far enough to deter me to shoop there etc .. it is simply cannibalism of sales, and in the end in hurts the product and hurts Ford. This move will help. Igor Quote Link to comment Share on other sites More sharing options...
630land Posted August 15, 2006 Share Posted August 15, 2006 (edited) Where I live, there are at least 5-7 Ford dealers within 15 miles of my Chicago suburb. And two are within 5 miles {Elmhurst and Oakfield Ford}. Most of them are continually running 'blow out' sales. Also, sure they may cut the prices down to beat the Ford guy 3 miles away, but then they add on other 'hidden' charges. Also, they low ball on trades. [in fact, used cars is where they rake in $$$] Just speaking from experience. I will not shed a tear if some of the Chicagoland shysters get turned into condos, strip malls, or used car lots. Or even import make lots too! As to why not sooner, probably arrogance, thinking the 'good old days' were comin back, or that 'imports are a fad'. Also, the huge truck sales of 1990s made them think they'd be raking in $$ forever. Edited August 15, 2006 by 630land Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted August 15, 2006 Share Posted August 15, 2006 I have to agree about the oversaturation of dealership...I know in my area, within a 10-15 mile drive from where I live, I have 5-6 Ford Dealerships with only 2 of them being fairly large. Quote Link to comment Share on other sites More sharing options...
NLPRacing Posted August 15, 2006 Share Posted August 15, 2006 On my 25 mile commute to work, I pass three Ford dealers and two Lincoln/Mercury dealers. And really, every Ford dealer in our area pretty much suck due to the increased competition against each other for such a small market share. Plus, almost all of the Ford dealers in this area are owned by big national new car dealership companies that really don't care about Ford. Hopefully Ford keeps & strengthens the larger independent dealers and get rid of the crappier, smaller "New Car Mega Mall" Ford dealers. Here's a good example of why it's bad to have too many dealers in one area. When I purchased my F150, I emailed every Ford dealer in the Dallas-Fort Worth area to see who would go closest to invoice and I bought it there. In contrast, a co-worker recently purchased a new Corolla (he also owns a Ford F150 that he purchased new but for some reason wanted a Toyota for his wife because of perceived quality) and he emailed every Toyota dealer around, and they were all within $50 of each other and could really care less if they sold a car based on price. That's where Ford needs to get to. First, they need quality cars that people actually want (the Mustang, Fusion, F150 and Edge are a good start). A replacement for the Ranger, Freestar, CV & updated Focus, Escape, FH and Freestyle plus the all-new B cars can't come soon enough. If this plan works, along with all the new products due out in the next 2 to 3 years, Ford should be looking pretty good. Maybe they'll be able to pass Toyota & Honda along the way... Quote Link to comment Share on other sites More sharing options...
igor Posted August 15, 2006 Share Posted August 15, 2006 Detnews reports on this today - it will be fully woluntary - ford will simply encourage dealerships to merge or close (maybe with some incentives) and will look at market saturation when asked to transfer or renew franchises. http://www.detnews.com/apps/pbcs.dll/artic.../608150342/1148 Igor Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted August 15, 2006 Share Posted August 15, 2006 I'm very glad to see that this will be a voluntary program, with Ford as facilitator. Forcing consolidation is like trying to push a chain uphill. Only more expensive. Quote Link to comment Share on other sites More sharing options...
2005Explorer Posted August 15, 2006 Share Posted August 15, 2006 At least Ford is targeting the areas that are overdealered, instead of trying to force small rural dealerships out of business. Still, this is going to be expensive. Actually the small rural dealerships is one of Ford's strengths. If there are too many dealerships in one market area that is exactly where the reduction needs to take place. Hopefully they will have a way to close the most unproductive dealerships or the ones that have a record of the most complaints by customers. Quote Link to comment Share on other sites More sharing options...
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