Ford is making some cuts in its sales and marketing groups. Ford specifically plans to combine the Lincoln-Mercury and Ford sales and marketing organizations. This is a certainly cost cutting measure. The regional offices for the brands will drop to 11 from 17, and their will be some job cuts. While we respect the need to reduce any redundancy in their marketing and sales operations, we are concerned about the Ford's marketing strategy in general. We recently discussed in our podcast that we feel that marketing is one area where Ford could use some work. There is a positive note out of this news, but it has little to do with the merger of the two marketing organizations. Ford is trying to reduce the fleet sales of their newer vehicles, like the Mustang and hopefully the Fusion, to bolster their image and help residual values. You could argue that the Mustang's popularity with the public might be reason enough to shift sales from fleets.
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