The FT reports that Ford is hoping that better relations with its dealers will help it achieve a recovery to its depleted US market share.
The newspaper reports that the company acted to repair strained relations with its US dealer network last week at a meeting of the company’s ‘Dealer Council’.
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According to the FT, Ford said it would offer dealers cash rewards of $500 to $1,000 per vehicle on its Expedition and Explorer sport utility vehicles (SUVs) for the rest of this month, if they met targets.
Ford’s relations with its dealers have been strained in recent years by the carmaker’s stalled attempts to re-shape the way in which it sells cars. Under former CEO Jac Nasser, the company investigated ways of directly selling cars and also tried – unsuccessfully – to consolidate dealerships in certain metropolitan areas. Dealers were outraged.
However, as the FT notes, a complete restoration of confidence between Ford and its dealers is still some way off.
Ford worried dealers late last year with signs that it was unilaterally changing the ‘Blue Oval’ dealer certification scheme and backed down after a dealer revolt. Also, dealers are lamenting a lack of new product in 2003.
