agent Entrepreneur logo
MenuMENU
SearchSEARCH

Ford Hopes to Trim U.S. Dealerships Ranks by Another 10%

September 15, 2010
2 min to read


DETROIT - Ford Motor Co. wants to reduce its U.S. dealership ranks by another 10 percent -- or 300 outlets -- the automaker's top marketing executive said, according to Automotive News.


At the end of July, Ford had about 3,338 U.S. dealers, including 1,189 dealers with Lincoln franchises.

Ad Loading...


With industry sales volumes forecast to rebound slowly, Ford and other automakers want to rationalize and improve the profitability of their sales networks by consolidating dealerships. The automaker has aggressively restructured to operate profitably at current sales volumes and adapt to consumers' shift from big trucks and SUVs to cars and crossovers.


Ford is also shuttering the Mercury brand by the end of the year, putting pressure on some of the company's 261 stand-alone Lincoln Mercury dealerships. There are no Mercury-only stores.


“The dealers are full partners in every decision the company makes,” Jim Farley, Ford's group vice president for global marketing, sales and service, said at an investor conference in San Francisco Tuesday. “When you are trying to consolidate your network from 6,000 down to 3,000, the dealers are on your side, and they will help you participate in the consolidation.”


Because Ford's dealer relations have improved in recent years, to an all-time-high, Farley said, the company is in a position of strength to encourage consolidation. At the same time, the value of many Ford dealerships has rebounded this year, so some dealers may be reluctant to give up a franchise.


Separately, Farley said Ford plans to make its premium EcoBoost engines with turbo-charging the core powertrain across all model lines.

Ad Loading...


Until now, Ford has said it wants to offer EcoBoost in nearly all models as an optional engine. The EcoBoost line also carries a price premium.


“We intend to have EcoBoost across every one of our vehicles as a core powertrain,” Farley said. Over time, he said, the engines will shift from a small portion of Ford's product mix to a “substantial” offering across the lineup.


"We are aggressively investing in global powertrain, especially EcoBoost," Farley said. "We want to bring fuel economy technology to everyone."


EcoBoost can increase the fuel economy and performance of engines by as much as 30 percent.


Since 2004, Farley said Ford has improved average fuel economy in the U.S. market by 25 percent -- almost double what its competitors have achieved.

Ad Loading...


"We want to beat Toyota and Honda, the traditional leaders of fuel economy, and be the best in class with fuel economy,” he said. "The real key difference for us in our DNA, we want to democratize technology to the average customer."

More Industry

Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Gray-scale photo of a line of Mini cars in a dealership parking lot
Industryby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
Ad Loading...
Closeup photo of the front of a white car
Industryby Hannah MitchellMay 21, 2026

New-Vehicle Sales Picture Relative

A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.

Read More →
Nissan logo on front of building
Industryby Lauren LawrenceMay 21, 2026

Auto Group Acquires Third Nissan Rooftop

Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.

Read More →
Couple talking with auto salesman next to new car inside dealership
Industryby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Ad Loading...
Wooden people figures of different colors in a row, similar to board game pieces
IndustryMay 20, 2026

Building an Extraordinary F&I Agency

Work to determine your specialized talent, because that fact will determine everything about your agency’s future.

Read More →
Ingredient card, policies and procedures, fixed operations, variable operations, data security, audit
Industryby Jim GantherMay 19, 2026

Recipe for Compliance

The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.

Read More →
Photo of new Chevrolet Bolt parked on a beach
Industryby Hannah MitchellMay 14, 2026

EVs Getting More Attractive

A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.

Read More →
Ad Loading...
Benchmark bar graph showing April 2026 EV Sales
Industryby Lauren LawrenceMay 14, 2026

EV Sales Drop in April Following Surge

North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.

Read More →