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Ford Cancels Plans for Indianapolis Project

1 October 1997

Ford Cancels Plans for Indianapolis Project

    DETROIT, Oct. 1 -- Ford Motor Company today
announced it has discontinued discussions with Indianapolis dealers on
implementing a single-entity, 'learning laboratory' in that market.  The
company is moving forward with similar plans in other markets.
    "We have been discussing the subject with our dealers in Indianapolis
since early May," said Thomas J. Wagner, vice president of Customer
Communication and Satisfaction.  "We indicated from the outset that we would
not engage in a hostile takeover.  If it became apparent that a substantial
number of dealers, or any of the key dealers, were unwilling to participate in
the project, we would close discussions and move to other, more receptive
markets. "
    Wagner said that after discussing the project in detail with Indianapolis
dealers, it became apparent that the proposal did not make financial sense for
all of the parties involved.  "We now plan to implement the project in other
markets -- utilizing our recent experience as an asset for our future
planning," Wagner added.
    Ford announced its 'learning laboratory' concept earlier this year,
confirming that it was considering Indianapolis, Salt Lake City and 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.
    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 both Indianapolis and 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.  "We are
obviously disappointed that we could not come to an agreement with
Indianapolis dealers, or in Salt Lake City where we recently discontinued
discussions.  But 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