Friday, September 17, 2010

Ford Wants to Downsize to 3,000 Dealers.


What goes up must come down.  That statement holds true to so many things in life, and now it may be the case for Pittsburgh Ford and other Ford Motor Company dealerships across the nation.  Currently, there are 3,338 Ford Motor Company dealerships across the country.  Their goal is to trim off the excess so that there are only 3,000.  That is a lot of businesses that will be lost and employees suddenly unemployed.  Perhaps Yuma Nissan is hiring? 

As of right now, there are 261 dealerships that sell only Lincoln and Mercury vehicles.  That number is part of Ford's total dealerships as they are all under the Ford Motor Company umbrella.  The Mercury brand has been hanging on as long as possible but with increasing competition from import brands like Reading Kia and the fact that other people are offering better and more affordable luxury than Mercury, they just can't stay afloat anymore.  This is the last year for production and the brand is being phased out, finalized by the end of this year.  That means that those 261 Lincoln-Mercury stores will just be Lincoln stores.

Some auto experts estimate that those Lincoln Mercury stores depend on the Mercury brand to supply about 40-60% of the total income.  Without those extra cars on the lot, many of the dealerships won't be able to survive.  Ford has suggested repeatedly that Lincoln consolidate their businesses with the nearest Ford dealership.  However, there are also rumors swirling that the Lincoln brand name might also be on the chopping block.  Ford Motor Company will make a final decision and announce it on October 4 at the Dearborn headquarters.  While the whole process has meant to be positive and Ford has been helping Lincoln owners along the way, this process is still frustrating for the dealership owners.  They recently renovated their machine shops to handle the repairs for the new car technology, and now they are being asked to close their doors.



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