Report: Ford still hoping to cut 10% of its dealer network

Thu, 16 Sep 2010

Ford may have come through the automotive implosion relatively unscathed, but that doesn't mean the company isn't still trying to trim its costs. According to Automotive News, Ford wants to consolidate its dealer network by closing the doors on some 300 lots. The reason? While the automotive market is slowly improving, no one expects to see the kind of buying levels enjoyed before 2009 anytime soon. As a result, Ford wants to boost the profitability of its dealer network by reducing the number of outlets available to consumers.

While you'd expect dealers to be up in arms over such an announcement, Ford says that, by and large, its showrooms are behind the move. The company's relationship with its dealer network recently hit an all-time high, putting Ford in a good position to push the consolidation effort.

The move to trim outlets is also bolstered by the fact that there are 261 Lincoln-Mercury dealerships out there, and with Mercury on its way to the back lot in the sky, those dealers will likely be exploring other options. And with Ford currently operates a total of 3,338 dealerships in the States, a sacrifice of 10% seems more than reasonable.

[Source: Automotive News - Sub. Req. | Image: Bill Pugliano/Getty]

By Zach Bowman