Ford Looks to Trim Metro Area Dealers in 18 Markets

Washington DC August 15, 2006; The AIADA newsletter reported that as Ford marches forward with revisions to its turnaround plan, it will urge some of its 4,300 Ford, Lincoln and Mercury dealers in 18 metro markets – mainly Midwest and Northeast areas including Detroit – to voluntarily close or merge their operations, reports The Detroit Free Press.

While the automaker is not providing details of the plan, Ford spokesman Jim Cain noted that the automaker gave dealers an overview of the strategy during meetings held in Las Vegas in recent weeks. Cain also refrained from commenting on any incentives Ford may be offering dealers as part of the effort to trim dealerships.

Ford's initial Way Forward plan called for the elimination of 30,000 jobs and 14 plant closures, but last month the company indicated that tougher action was needed. An announcement on the updated plan is expected by the end of September.