Ford Wants to Buy Out Development Program Dealers
Ford is finally addressing its bloated dealer network through a new program of store buyouts. Automotive News [sub] reports that FoMoCo’s offering a one-time “go on take the money and run” deal to the 81 members of their dealer development program. Ford will refund the dealers’ investment in their Ford or Lincoln-Mercury store– even if it’s worth less than their original ante. In a letter to dealers, development program director Jamy Hall wrote that “Ford is taking this action in an effort to ensure a sustainable dealer development program.” However, Ford’s action is raising some eyebrows; the majority of participants in the program are minorities. One dealer said he will refuse the offer because “it’s just targeted at minorities because they’re low-hanging fruit.” Ford rejects the suggestion. They also declined to say how many dealers in the development program they expect to avail themselves of a “graceful exit” from the Ford franchise network.