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Ford Cancels Plans For Salt Lake City Project

15 September 1997

Ford Cancels Plans For Salt Lake City Project

    DETROIT, Sept. 12 -- Ford Motor Company today
announced it has discontinued discussions with Salt Lake City dealers on
implementing a single-entity, "learning laboratory" in that market.  The
company said however it was continuing discussions with its Indianapolis
dealers on a similar project.
    "We have been discussing the subject with our dealers in Salt Lake City
since mid-June," said Thomas J. Wagner, vice president of Customer
Communication and Satisfaction.  "We indicated from the outset both in Salt
Lake City and in Indianapolis that we would not engage in a hostile takeover.
If it became apparent that a substantial number of dealers, or a few key
dealers, were unwilling or unable to participate in the project, we would
close discussions in those localities and move to other, more receptive
markets."
    Wagner said that after discussing the project in good faith in Salt Lake
City it became apparent that conditions existed that would make the business
proposition unfeasible for Ford and some of the dealers.  "Rather than prolong
the process, we felt it best to move on and concentrate efforts in other
markets where dealers have requested consideration for project
implementation," Wagner said.
    Ford announced its "learning laboratory" concept earlier this year,
confirming that it was considering Salt Lake City, Indianapolis and possibly
other medium-size markets in the U.S. to test customer satisfaction-intensive
processes.  Under the system, a single entity would be established in
cooperation with Ford and Lincoln-Mercury dealerships in a geographic area.
    The learning laboratories will focus on customer-friendly sales and
service processes, feature geographically centralized sales locations, and
have separate AutoCare centers for convenient vehicle maintenance and repairs.
A single enterprise manager would have the responsibility for all of the
business locations in each market.
    When implemented, the process improvements and knowledge that Ford gains
through these test markets will be cascaded throughout the Ford and
Lincoln-Mercury dealer network.
    "We indicated from the outset in Salt Lake City that if it became apparent
that we and the dealers could not move forward together, we would not pursue
the matter further in that market," Wagner said.  "However, we are committed
to testing a significant change in the way we relate to and do business with
our customers, and we are proceeding with the project in other markets."

SOURCE  Ford Motor Company