Ford just keeps on moving forward in these difficult times. While its Detroit brethren are excessively trim down their dealership networks, Ford plans to cut only a few of its dealers, relatively speaking. The automaker also plans to benefit from GM’s impending 1,100 closures and Chrysler’s upcoming 780 closures.

James D. Farley, Ford’s director of North American sales, said that Ford had been pushing steadily to consolidate its dealers, rather than trying to end their contracts. The automaker has reduced its dealer network by 700 since 2005, leaving it with 3,700 nationwide.

Ford is banking on the idea that the sudden closures of Chrysler and GM dealerships, particularly those in rural areas, will leave millions of their customers with nowhere to go but into its dealerships. But Farley admitted that the success of this bet depended on how well GM and Chrysler handle their orphan owners. “If they don’t give them a lot of attention, it will result in consumers going to other brands,” he said.

Unlike GM and Chrysler, Ford has not accepted any government bailout money. As such, it is taking every opportunity to highlight this difference, while at the same time carrying out its own restructuring initiatives.

Source: Detroit News

One Response

1. AllStangs says:

   May 31, 2009 at 5:01 pm

   It's nice to see Ford at least doing a respectable job dealing with this crisis. Granted, they aren't facing Chapter 11, so it's somewhat easier. But part of that is smart dealership management on Ford's part.

   They'll certainly get a nice boost in sales once the other Chevy & Chrysler dealers shut down. In fact they already are getting more sales since people in the market for a new car or truck now are hesitant to buy a Chevy for fear that it won't still be in business to provide maintenance and parts down the road.

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