Ford Looks to Cut 600 Dealerships Over Three Years

Washington DC September 18, 2006; The AIADA newsletter reported that Ford is aiming to eliminate up to 600 Ford, Lincoln, and Mercury dealerships over three years through its store consolidation plan.

The automaker is offering some dealers up to $300,000 in financial aid to encourage dealership mergers as a way of streamling its retail network, reports Automotive News.

The aid will likely be tailored to the circumstances of each geographical region. Ford is also seeking to speed up deals by providing cash incentives and money to buy back vehicle parts and inventories, according to sources familiar with the plan.

A report last month in The Detroit Free Press indicated that part of Ford's turnaround plan would be to decrease the number of dealerships in 18 major metro markets.