Ford is set to close around 50 percent of its UK dealerships as it embarks on a bold strategy to streamline its commercial operations.
The move, which was announced at an investor conference today (26 January), is part of the ‘Ford 2025 dealer plan’ which the brand says hopes will build “a stronger and more sustainably profitable Ford sales and servicing network”. Between 210 and 230 stores are expected to be affected.
It is hoped that the majority of the affected dealers will remain in operation as dedicated aftersales hubs, and the firm anticipates that 90 percent of new car buyers will still be able to reach a dealership within 30 minutes.
Some of Ford’s smaller UK dealerships will be converted into standalone service centres, with Ford claiming that “customers will not be unduly inconvenienced” by the shake-up.
An official Ford statement read: “We are working together in a spirit of partnership with our dealers and their investors to build a stronger and more sustainably profitable Ford sales and servicing network for the future in the UK, which works for the mutual benefit of our businesses and for our commercial and passenger vehicle customers.”
It is the largest consolidation of a VM dealer network in UK to date, and follows similar downsizing initiatives at Honda and Vauxhall. Despite heavy restructuring over the last 20 years, Ford has concluded that “dealer network profitability is still not sustainable”.
Vehicle manufacturers are gradually exploring new ways of selling new cars. Last year saw Volvo launch the ‘UK’s most comprehensive’ online car sales service, while Mercedes activated a new digital showroom this week, which provides real-time stock availability data and a finance quote function.
At the beginning of 2019, Ford revealed the first details of its overhauled European business strategy as part of a $14bn drive to cut costs globally.