Ford to make little cuts in dealer network, expects to benefit from GM and Chrysler dealer closures

While Chrysler plans to shutdown nearly 800 dealers by next month and GM plans to get rid of 1,100 dealers by next year, Ford said that its cuts will be much smaller when compared to those made by its rivals. Director of North American sales, James D. Farley, said that Ford expects to benefit from the closure of nearly 2,000 competing showrooms.

Farley said that Ford has already reduced its dealer network by 700 since 2005, which has left the Dearborn automaker with a total of 3,700 dealers nationwide.

Ford, which has not received any government loans, is taking ever opportunity to shine light on the differences between it and GM and Chrysler. Farley told the Detroit news that the plant closures by Chrysler would affect millions of consumer with little warning and some of those consumers, especially those in rural areas, will migrate to Ford dealerships.

“It really depends on how GM and Chrysler handle these orphan owners,” he said. “If they don’t give them a lot of attention, it will result in consumers going to other brands.”

– By: Omar Rana

Source: Detroit News