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GM, Chrysler not only domestic dealer cuts

November 15, 2010

As General Motors Corp. and Chrysler LLC move to close hundreds of dealerships around the country, Ford Motor Co. has closed more than 670 Ford and Lincoln-Mercury stores since the company began consolidating franchises in major metropolitan markets in late 2005.

The 670 closures represent a 16 percent reduction, leaving Ford with 3,723 stores.

"We’ve been working on that for the last three years," CEO Alan Mulally told reporters at the company’s annual meeting in May. He said the company still has too many dealers in some cities. "They’re very interested in right-sizing also, and we’re supporting that," Mulally said.

As evidenced by comparing the average number of vehicles sold annually by each manufacturer’s dealerships, Ford’s approach appears to be working.

According to a report by CSM Worldwide, Chrysler dealers averaged 207 sales last year, while GM stores averaged 222.

Ford dealers averaged 322 sales -- 45 percent more than GM and nearly 56 percent more than Chrysler, but still way behind the whopping 1,380 sales Toyota dealers average each year.