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AMD kills off ATI brandname, finally
On Thu, 07 Oct 2010 16:20:33 -0400, Bill Davidsen wrote:
wrote: On Mon, 20 Sep 2010 10:58:35 -0400, Bill wrote: Yousuf Khan wrote: On 19/09/2010 6:33 PM, zzzzzzzzzz wrote: On Sun, 19 Sep 2010 15:04:00 -0400, Yousuf wrote: On 10-09-16 11:41 PM, zzzzzzzzzz wrote: How so? It's going to be rough existing on only Lincolns. The market is quite small and ageing fast. Ford will most likely replace the Mercuries with Fords. Huh? Almost all Mercurys *were* Fords with deferent trim (sometimes not even that). LM dealers cannot sell Ford models. That's what I'm saying. If Mercury disappears as a brand, then Ford the corporation will likely give the former Mercury brand dealers, Ford brands to sell instead. I hear that Ford wants to close 500 dealerships. I would suspect they are Mercury dealers. 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. 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. |
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