Autoblog

Ford kills off Blue Oval Certified dealer program

Chris Shunk — Wed, 20 Jul 2011 08:31:00 EST

Filed under: Car Buying, Marketing/Advertising, Ford

Back in 2000, Ford rolled out what it called its Blue Oval Certified dealer program to reward its best retail outlets for outstanding customer satisfaction. But after 11 years of mixed results, Automotive News reports that Ford has scrapped the plan.

That's probably good news to dealers, since the program had gone from a chance for stores to earn thousands in rewards for strong satisfaction scores to a reason to earn special employee purchase prices on new Ford vehicles. Some dealers told AN that there was fear that a dealership would lose the franchise if the satisfaction scores weren't met.

While the Blue Oval Certified program has met its maker, we wouldn't be surprised if another program is right around the corner. Dealers will want rewards for making the grade, and car buyers will continue to be pressured into filling out those annoying satisfaction score cards.

Ford kills off Blue Oval Certified dealer program originally appeared on Autoblog on Wed, 20 Jul 2011 08:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Report: Lincoln dealers refusing to upgrade stores until Ford shows future products

Zach Bowman — Mon, 25 Oct 2010 10:28:00 EST

Filed under: Car Buying, Lincoln, Earnings/Financials, Luxury

According to Automotive News, some Lincoln dealers aren't willing to put up the cash for expensive showroom updates until their company shows them physical proof of future products. Ford has asked some dealers to spend as much as $1 million on facility upgrades, even while admitting that there won't be any new products for up to two years. With Ford tight-lipped about what exactly their new luxury lineup will look like, many dealers aren't sure whether or not a large investment in their showroom is a worthwhile endeavor. Ford has said that dealers that fail to comply with the changes may see incentive money cut in the near future.

Meanwhile, FoMoCo is offering buyouts for Lincoln dealers that the company has found to not be in preferred markets - from $1.5 million in one case to as little as $300,000 in another. In both instances, the owners of the dealerships plan to reject the offers as being too low to even consider.

In the mean time, there seems to be growing rift among Lincoln dealers that may lead to an even greater split in the near future.

[Source: Automotive News - sub. req. | Image: Paul Sancya/AP]

Report: Lincoln dealers refusing to upgrade stores until Ford shows future products originally appeared on Autoblog on Mon, 25 Oct 2010 10:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: Ford offering dealerships for $1

Jonathon Ramsey — Wed, 22 Apr 2009 16:29:00 EST

Filed under: Ford, Earnings/Financials

Ford's dealer development program works to help people become dealer principles who might not otherwise have the chance. The 64 members of the program, most of them black or Hispanic, are set up with stores by Ford and then buy out Ford's interest in the dealership with revenues. To give them a boost and, presumably, free up Ford money, Automotive News is reporting that Ford is offering dealers in the program an offer they'll have a hard time refusing: complete ownership of their stores for $1.

To take advantage, though, the dealers will need to have private financing for their operating capital in place by September 30. If they can prove to Ford that they have enough private resources, they will take complete control of their stores and Ford will forgive any money the dealer still owes to The Blue Oval. Even though Ford would technically lose money on any dealer who accepted the offer, the automaker would no longer need to be involved in the dealership or in its floorplan financing.

With the state of car sales, there are likely to be dealers who can't take advantage of the program. For those who haven't been able to pay Ford back at all, the decision will be taken on a case-by-case basis about what to do with their stores. For those dealers in good standing who simply can't get outside financing, the arrangement will continue as is.

[Source: Automotive News, sub req'd]

REPORT: Ford offering dealerships for $1 originally appeared on Autoblog on Wed, 22 Apr 2009 16:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Ford to meet with dealers about future products, try to close stores

Chris Shunk — Wed, 27 Aug 2008 19:32:00 EST

Filed under: Car Buying, Ford, Lincoln, Mercury

2008 has been a historically woeful year for the auto market, but Ford dealers have been in the crosshairs of a sales decline for over a decade. That brutal reality, along with financial incentives of up to $700,000 or more from the Blue Oval, has lead to the closure of over 500 dealers since mid-2006, and over 150 so far in 2008. To close still more dealers while giving remaining stores a heads-up of future happenings, Ford is embarking on a series of meetings with Ford and Lincoln Mercury dealers. Among the topics of discussion will be future products, product volume and market conditions.

Though Ford isn't stating publicly how many dealerships it wishes to close, the Blue Oval is hoping to have enough departures to make the remaining dealerships healthy. Ford would like to see Ford brand dealers with 1,500 sales per month and Lincoln Mercury dealers with 600 sales per month, which is far higher than what Ford's 3,900 stores are averaging now. To help entice dealers to hang up their plaid sport coats, Ford will be offering cash incentives, but Ford Market Representation Director David Kelleher is hinting that those deals won't last long.

[Source: Automotive News - sub. req'd, Photo by Scott Olson/Getty]

Ford to meet with dealers about future products, try to close stores originally appeared on Autoblog on Wed, 27 Aug 2008 19:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Ford to shrink dealer network over three years

John Neff — Mon, 11 Sep 2006 18:51:00 EST

Filed under: Car Buying, Trends, Ford

Reuters is reporting that Ford will be shrinking its dealer base over the next three years in order to better align its distribution network with a market share that is smaller than it has been in the past. Dealers were told of the planned reduction at the dealer meeting in Las Vegas last month. The East Coast and California have the highest saturation of Ford dealerships and are likely to see the largest reduction in numbers. At the moment there are about 4,300 Ford dealerships operating in the U.S.
This is tough but smart call by Ford. It would be easy for Ford to use the belief that its market share will begin climbing again in the near future as an excuse to keep its dealer network intact. However, shrinking the dealer network now to more comfortably handle its reduced production capacity, it appears Ford is accepting its current situation and trying to build a smaller, more efficient Blue Oval.

[Source: Reuters]

Ford to shrink dealer network over three years originally appeared on Autoblog on Mon, 11 Sep 2006 18:51:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments