AMD kills off ATI brandname, finally

[Bill Davidsen]

Mercury dealerships are also Lincoln dealerships. Yes, Ford has wanted to
close many of them for decades. One I know of sell one car a year. Several
sell single digits a month. That isn't very profitable for Ford.

It has to be more profitable than selling none.

The Dodge and Chevrolet dealers near me were closed. The nearest dealers are now
about 45 minutes away from me, which is a PITA for getting factory authorized
service, or even looking at the car to buy. Anyone living in the nearby area,
maybe 3k-4k people, is a LOT less likely to buy those brands. Subaru and Suzuki
have dealers in 15 minutes, Ford has two within 15-20 minutes, I can't imagine
that Dodge and Chevrolet are selling well, particularly since the Chevrolet
dealer was a huge multi-acre setup with large showroom, and it will be a Honda
dealer by end of year.

If a dealer provides service and pays a franchise fee yearly, how does profit
improve closing a shop, even selling one car a year? I miss the financial model
somewhere.

 

[krw]

It has to be more profitable than selling none.

No, it really isn't. It costs Ford money to keep dealerships open.

The Dodge and Chevrolet dealers near me were closed. The nearest dealers are now
about 45 minutes away from me, which is a PITA for getting factory authorized
service, or even looking at the car to buy. Anyone living in the nearby area,
maybe 3k-4k people, is a LOT less likely to buy those brands. Subaru and Suzuki
have dealers in 15 minutes, Ford has two within 15-20 minutes, I can't imagine
that Dodge and Chevrolet are selling well, particularly since the Chevrolet
dealer was a huge multi-acre setup with large showroom, and it will be a Honda
dealer by end of year.

Yes, that was a purely political move. Certainly dealerships that turn cars
are profitable for the manufacturer. Ones that don't aren't.

If a dealer provides service and pays a franchise fee yearly, how does profit
improve closing a shop, even selling one car a year? I miss the financial model
somewhere.

The district sales and service managers still have to visit the dealerships.
There are books to be kept. Advertising, though some of that is regional
dealerships' responsibility. Quite a lot of expense.