Ford sells Oklahoma dealerships

April 5, 2002 The Associated press is reporting that the Ford Motor Co. has sold all six of its Oklahoma City dealerships and no longer will compete with independent Ford dealerships.

"It was the wrong strategy, and we are getting out of the retail business," said Paul Lam, Ford Division southwest region market representation manager in Carrollton, Texas.

A formal announcement on the sale of the Oklahoma City dealerships was expected from Ford on Thursday, The Daily Oklahoman reported.

Last June, Ford announced it was backing out of the retail business and selling its 13 dealerships in Oklahoma City and Tulsa. Ford also is selling 17 dealerships in New York and Utah.

In 1998, Fred Jones formed the Oklahoma City Auto Collection with Ford Investment Enterprises Co. Fred Jones was the majority stockholder until 2000, when Ford Investment Enterprises gained control of most of the stock.

Ford bought six of nine Ford dealerships in the Oklahoma City area.

Nationally, many Ford dealers complained about competing with their supplier, but some independent Oklahoma City dealers said their business improved.

The auto collection dealerships offered only "no-haggle" prices that drove some customers to the three independents, which negotiated prices.

The Oklahoma City dealerships will be owned by separate independent dealers. United Auto Groups Inc., one of the nation's largest publicly traded auto dealers, is managing the seven Tulsa locations and eventually will own the dealerships, Lam said.

"It's a costly lesson for us, but nevertheless I think we have learned that our dealers are our partners for life," Lam said.

He said the manufacturer's management of dealerships wasn't as efficient as that of the independents.

"We found out for Ford dealers a retail dealership is more effectively run by individuals who have everything at stake in that business," he said. "They know the retail business, and they make very good and sound decisions because that's their money invested."