Ford Runs Out of US Dealerships Cash
In other words, Ford will allocate less money to US dealerships, as part of its plan to rely on a number of businesses said to help it stick to its restructuring plan. According to Autonews, Ford didn't mention how much money it plans to use to subsidize dealership consolidation in 2009, but the company is clearly aiming to reduce costs in this sector.
"We don't have an expansive budget other than to protect strategic locations. We have a very limited budget to help us in strategic metro locations,” Ken Czubay was quoted as saying by Autonews. "We are working aggressively with our dealers to get them to couple up and face the realities of the market."
Ford used subsidies in the past three years to reduce the overall number of dealerships across the country by 609 stores, Autonews wrote, which brought the total number of authorized showrooms to 3,787 at the end of the last year. However, the company does not plan to help dealerships anymore as the financial collapse of the automotive industry plus its continuously decreasing sales forced the American automaker slash budgets in almost every single area.