As Ford Quality Rises, Dealer Income Shrinks

Frank Williams
by Frank Williams

Ford isn't wasting any time bragging about their bought and paid for surveys claiming that their quality is now on par with Toyota's. However, as the Detroit News reveals, FoMoCo's newfound reliability has dealers losing money on warranty work. The National Automobile Dealers Association estimates Ford dealers currently lose $30 on every new car they sell; they make up the difference through financing, add-ons, service and warranty work. [U.S. car dealers earned $7.7b on warranty repairs last year.] With warranty work shrinking, they'll have to earn more money elsewhere. To that end, Ford's introducing a line of aftermarket accessories called "Customs" focusing (so to speak) on "high-profit items like custom wheels and electronics." So in addition to paint protection, window etching and LoJack, Ford dealers will be hawking factory-authorized customization. Pimp my profits?

Frank Williams
Frank Williams

More by Frank Williams

Comments
Join the conversation
4 of 27 comments
  • HEATHROI HEATHROI on Apr 11, 2008

    well the couple of ford dealerships I went to add a couple of things (in a fools errand to made the focus go faster) one oufit told me putting a new header on would invalidate the warranty (and to basically piss off) and the other on being told I wanted the svt suspension parts from Ford Racing "we don't handle that stuff"

  • Nino Nino on Apr 11, 2008

    I have to say that Ford (the company) has been responsive to complaints I've had over the years while the dealers not as much. But even that attitude from the dealers is changing, much more so than dealers peddling the General's products.

  • Quasimondo Quasimondo on Apr 11, 2008
    well the couple of ford dealerships I went to add a couple of things (in a fools errand to made the focus go faster) one oufit told me putting a new header on would invalidate the warranty (and to basically piss off) and the other on being told I wanted the svt suspension parts from Ford Racing “we don’t handle that stuff” I know of very few dealers that are willing to perform aftermarket installations, even on factory racing parts. You should check the fine print in your warranty to see if the installation of parts does void it out.
  • Areitu Areitu on Apr 12, 2008

    N85523: You're sittin' here, you're talkin' in circles! You're talkin' like we didn't go over this already!

Next