Ford Offers To Rescue Struggling Dealership Owners
The blue oval hasn’t been so hot lately and many dealerships are suffering. Ford is offering to dig these guys out of the hole by buying them out completely. You may have heard about the Ford dealer development program wherein Ford provides up-front capital and then the dealer can pay them back with profits from the business. At some point, the dealer is supposed to buy out Ford’s stake altogether.
There are 81 dealerships in the program right now and there’s a good chance that several of them aren’t exactly profitable. Ford has offered to buy all of them out by returning the dealer’s full investment, effectively swallowing the dealership under the corporate banner. Of these 81 dealers, 62 are minorities.
Some have said that Ford is trying to oust minority-owned franchises, but Ford is saying that they are simply trying to let struggling dealers exit the business without losing everything. For those who rely solely on the dealership for income, Ford is considering an additional payout of $100,000. Ford is giving dealers until April 1st to make a decision.
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