Last post on Nov 22, 2011 at 2:06 PM
You are in the Honda CR-V
What is this discussion about?
Honda CR-V, Ford Escape, Car Safety, Fuel Efficiency (MPG), SUV
#7823 of 8533 Ford dealers, just too many
Sep 15, 2006 (7:56 am)
I was saving this article since May when this thread was (unnecessarily??) shut down. I'm about to delete it because I really don't care about a dying automaker but I think this illustrates the point several Honda people make about how many more dealers Ford has than Honda and how it may translate in to additional sales for the Escape vs. CR-V (even though someone still refuses to believe it makes a difference).
If you want to see the whole thing let me know (I highly doubt it!!).
For dealers, 63's a crowd
Fewer area Ford stores might lead to greater sales, some believe
By Rick Popely
Tribune staff reporter
Published May 17, 2006
Longtime Ford dealer John Guido worries about losing customers not only to Toyota and Honda stores, but also about having them poached by other Ford outlets.
That's because Ford has 63 dealers in an eight-county area around Chicago that includes northwestern Indiana.
"There's no question you can go five or eight miles and find another Ford dealer," said Guido, one of the owners of Arlington Heights Ford. "I'm right in the middle of a bunch of them."
Few tears were shed by Guido or others when Bert Weinman Ford, a mainstay on Chicago's North Side, closed last month. Guido says Ford could stand to lose more.
"We've got too many dealers. If we had 50, we'd all be rocking and rolling," said Guido, president of Ford's local dealer advertising group, noting that Ford sales are declining here and nationally. "With this many, it's tough."
As Ford--and GM--seek to recover from financial troubles, reducing the number of dealerships wouldn't directly help the companies get back on their feet. But there would be benefits. As domestic manufacturers try to wean consumers from discounts and sell their vehicles on their merits, that task becomes harder with so many dealers trying to outdo each other on price, said Art Spinella, president of CNW Marketing Research.
It's an issue that foreign makers like Toyota and Honda don't have to deal with because they have limited the number of dealerships.
Domestic dealers "are going to wind up selling on price, no matter what the manufacturer says," Spinella said. "If they really want to get transaction prices in line with sticker prices, they need fewer dealers.
General Motors' dealers are in the same boat as Ford's, according to Chicago Auto Outlook, a publication produced for the Chicago Automobile Trade Association. For example, there are 71 Chevrolet stores in the area, the same number as four years ago. But Chevy's retail sales here have been falling--4.2 percent last year alone, to 46,299.
Ford's dropped 4.3 percent, to 36,511. Long the No. 2 brand with Chicagoans behind Chevy, Ford now ranks third behind Toyota, whose retail sales grew 8.4 percent last year, to 42,730. Honda's were up 2.3 percent, to 34,848.
But Toyota and Honda dealer ranks are not growing. Toyota has held steady since 2002 at 29 locally and Honda has remained at 25.
So the average Toyota and Honda dealer now sells twice as many new vehicles per year as their Chevrolet and Ford rivals, making their franchises more profitable and valuable.
#7824 of 8533 Re: Ford dealers, just too many [drive62]
Sep 15, 2006 (4:58 pm)
so what does individual franchise sales have to do with this? maybe chicago is an unusual situation as far as the number of dealers go.
honda has less dealers than ford where i live, but it isn't all that far off, maybe 3:2.
#7825 of 8533 Re: Ford dealers, just too many [explorerx4]
Sep 16, 2006 (7:47 am)
In Birmingham, there are 5 Ford dealers, 3 Honda dealers. If you are willing to travel though, say 50 miles, the numbers climb for both dealers, although the ratio is about the same.
#7826 of 8533 just got 25.7 mpg...
Sep 25, 2006 (5:07 pm)
over 317 miles with our escape v6. first time i took it on a trip. it's rated at 23 mpg highway.
#7827 of 8533 Re: just got 25.7 mpg... [explorerx4]
Sep 26, 2006 (4:55 am)
That's roughly what I used to get too. I always put a couple of extra PSIs in the tires to help, did you?
#7828 of 8533 Re: just got 25.7 mpg... [explorerx4]
Sep 26, 2006 (8:25 am)
"over 317 miles with our escape v6. first time i took it on a trip. it's rated at 23 mpg highway."
Was your average speed around 65 MPH?
#7829 of 8533 Re: just got 25.7 mpg... [stevedebi]
Sep 26, 2006 (3:46 pm)
by average do you mean miles divided by time? overall about 5 and a quarter hours. we drove at 75 mph as much as possible.
#7830 of 8533 Re: just got 25.7 mpg... [explorerx4]
Sep 26, 2006 (8:43 pm)
overall about 5 and a quarter hours
With 317 miles that works out to about 60 mph.
#7831 of 8533 Re: just got 25.7 mpg... [tidester]
Sep 27, 2006 (5:17 am)
If they drive anything like us, they stopped every couple hours or so to get out, stretch, get a coke, and pee!
#7832 of 8533 Re: just got 25.7 mpg... [thegraduate]
Sep 27, 2006 (8:55 am)
True - I wouldn't drive 5 hours without a pit stop.