FORD MOTOR TELLS DEALERS THAT NUMBERS, MARGINS WON'T CHANGE

Ford booth at NADA

February 12, 2006—Ford executives emphasized to its dealers at their franchise meeting that it plans to keep the dealer body at its current level except to lose a few dealers by attrition when they retire, according to Roger Anderson, Anderson Auto Group, Grand Island, Nebr., who attended the meeting. (This was an apparent response to published reports of executive vice president Mark Fields saying Ford would work toward a “right-size” dealer network.) Ford also said it did not plan to change dealer margins.

Execs at the meeting also spoke about Ford’s plans for alternative-fuel vehicles, says Anderson. “They’re really pushing those.” Some dealers told Ford they were more interested in diesels than hybrids, but the automaker is concerned about the lack of diesel fueling stations, he says. Ford encouraged dealers to tell their congressional representatives that they want more stations offering diesel and ethanol.

In addition, Ford executives addressed the importance of an integrated advertising/promotional message by Ford and its dealers to improve brand awareness, said John Thornhill, Thornhill Auto Group, Waxahachie, Tex.

Were dealers satisfied with what they heard? “We’re all in a wait-and-see attitude,” says Anderson, whose Ford sales at his five stores are down 40 percent.