This article presents several statistics of Ford Motor Company’s distributors and dealers (collectively, “dealerships”). These statistics include the numbers of Ford’s dealerships worldwide, number of dealerships by brand, and dealership growth rates.
Ford Motor has stated that most of its vehicles, parts, and accessories are sold through distributors and dealers, the substantial majority of which are independently owned.
Let’s look at the numbers.
Investors interested in Ford Motor’s employees worldwide and diversity statistics may find more resources on this page: Ford employee number and diversity statistics.
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Table Of Contents
Definitions And Overview
O2. How Does Ford Motor Expand Its Worldwide Dealerships?
Consolidated Results
A1. Total Dealerships Worldwide
A2. Growth Rates Of Worldwide Dealerships
Results By Brand
B1. Ford Brand And Lincoln Brand Dealerships
B2. Ford Brand And Lincoln Brand Dealerships In Percentage
Individual Result
C1. Ford Brand Dealerships Worldwide
C2. Ford-Lincoln Brand Dealerships Worldwide
C3. Lincoln Brand Dealerships Worldwide
Growth Rates Of Individual Result
C4. Growth Rates Of Ford Brand And Lincoln Brand Dealerships
Conclusion And Reference
S1. Conclusion
S2. References and Credits
S3. Disclosure
Definitions
To help readers understand the content better, the following terms and glossaries have been provided.
Ford Brand Dealerships: Ford brand dealerships are retail outlets authorized by the Ford Motor Company to sell and service Ford vehicles.
They offer a wide range of new and pre-owned Ford cars, trucks, SUVs, and parts and maintenance services. These dealerships are staffed with sales professionals and trained technicians who specialize in Ford vehicles, ensuring that customers receive knowledgeable assistance in purchasing and maintaining their vehicles.
Additionally, Ford dealerships often provide financing options and special offers to facilitate the buying process for their customers.
Ford-Lincoln Brand Dealerships: Ford-Lincoln brand dealerships are automotive retail businesses officially authorized to sell and service vehicles manufactured by the Ford Motor Company, including its Ford and luxury Lincoln brand vehicles.
These dealerships offer a wide range of new and pre-owned cars, trucks, and SUVs from the Ford and Lincoln line-ups. In addition to vehicle sales, Ford-Lincoln dealerships provide comprehensive after-sales services such as maintenance, repairs, parts replacement, and warranty services, ensuring that customers receive support throughout their vehicle ownership.
These dealerships are part of Ford’s efforts to cater to a broad spectrum of customers, from those looking for practical and reliable vehicles to those seeking luxury and premium driving experiences.
Lincoln Brand Dealerships: Lincoln Brand dealerships are retail outlets specializing in the sale of Lincoln vehicles, a luxury vehicle brand of the American automaker Ford Motor Company.
These dealerships offer a range of new and pre-owned Lincoln models, including sedans, SUVs, and crossovers. In addition to vehicle sales, Lincoln Brand dealerships provide comprehensive after-sales services such as maintenance, repairs, parts replacement, and warranty services.
They are known for offering a premium buying and service experience, aligning with the luxury status of the Lincoln brand. Customers can expect personalized attention, upscale amenities, and a focus on customer satisfaction at these dealerships.
How Does Ford Motor Expand Its Worldwide Dealerships?
Ford Motor Company employs several strategies to expand its dealership network worldwide, adapting to local markets’ needs while leveraging its global brand presence. Here’s an overview of how Ford undertakes this expansion:
1. **Market Research and Feasibility Studies**: Ford conducts extensive market research and feasibility studies to understand the automotive landscape of a new region. This includes analyzing consumer preferences, economic factors, competitive analysis, and regulatory environments to ensure a new dealership’s success.
2. **Partnering with Local Businesses**: In many cases, Ford partners with existing local businesses to establish its dealerships. This approach allows Ford to leverage the local partner’s market knowledge and networks, facilitating smoother entry and operations within a new market.
3. **Franchise Model**: Ford often expands its global dealership network through franchising, allowing individual business owners to open and operate Ford dealerships. This strategy enables rapid expansion with relatively lower capital investment from Ford’s side while ensuring the dealerships are run by knowledgeable entrepreneurs about their local markets.
4. **Investing in Training and Support**: Ford invests significantly in training and supporting its dealers worldwide. This includes providing access to the latest vehicle models, technologies, sales techniques, and marketing and operational support. Such investments ensure dealers are well-equipped to represent Ford and effectively meet customers’ needs.
5. **Adapting to Local Needs**: Understanding that markets worldwide have different preferences and requirements, Ford customizes its offerings and dealership operations to suit local tastes and regulations. This might include offering specific models in demand in a region or adopting dealership designs that align with local cultural preferences.
6. **Digital Expansion**: Recognizing the importance of digital platforms in contemporary car buying journeys, Ford also expands its dealership presence through digital channels. This includes virtual showrooms and online booking systems, allowing customers to explore models, book test drives, and even purchase vehicles online, complemented by traditional physical dealerships.
7. **Sustainability and Community Engagement**: Ford focuses on sustainability and engaging with the local community in many of its new dealerships. This can include constructing eco-friendly dealerships, participating in local events, and contributing to community development projects. Such efforts help build a positive brand image and attract customers.
By employing these strategies, Ford Motor Company successfully expands its dealership network worldwide, ensuring that it can meet the automotive needs of consumers in various regions while adapting to local market dynamics.
Total Dealerships Worldwide
Ford Motor’s total number of dealerships globally has decreased from close to 12,000 in 2013 to 9,500 as of the end of the fiscal year 2023. The decrease represents a drop of nearly 20% over the last ten years.
In short, Ford Motor had only about 9,500 dealerships globally by the end fiscal year 2023. This figure represents a 20% reduction from the 12,000 locations in 2013.
Growth Rates Of Worldwide Dealerships
Ford has registered mostly negative growth rates for its worldwide dealerships in the majority of the periods shown. For example, the growth of Ford’s worldwide dealerships has amounted -4% annually on average between 2019 and 2023.
The continuous decrease in Ford’s worldwide dealerships can be attributed to several factors. Firstly, like many of its competitors, Ford is investing in online sales capabilities, reducing the need for physical dealership locations.
Secondly, Ford’s commitment to electrification involves a different sales and service model. Electric vehicles generally require less maintenance than traditional internal combustion engine vehicles, which can reduce the need for traditional dealership service departments.
Thirdly, maintaining physical dealership locations is costly. To streamline operations and improve profitability, Ford may opt to reduce its physical footprint. This is part of a broader cost-cutting strategy to remain competitive in a rapidly changing automotive landscape.
Ford Brand And Lincoln Brand Dealerships
The definitions of Ford brand and Lincoln brand dealerships are available here: Ford brand dealerships, Ford-Lincoln brand dealerships, and Lincoln brand dealerships.
Of the total dealerships globally, the majority of them are Ford brand dealerships, as shown in the chart above.
Ford-Lincoln brand and Lincoln brand dealerships make up only a small portion of Ford Motor’s global dealerhips.
Ford Brand And Lincoln Brand Dealerships In Percentage
The definitions of Ford brand and Lincoln brand dealerships are available here: Ford brand dealerships, Ford-Lincoln brand dealerships, and Lincoln brand dealerships.
In terms of percentage, Ford brand dealerhips made up 90.7% of Ford Motor’s global dealerships as of the end of the fiscal year 2023, according to Ford’s 2023 annual report.
Ford-Lincoln brand and Lincoln brand dealerships consisted of just 5.3% and 4.0% of the total as of fiscal year 2023.
Ford Brand Dealerships Worldwide
The definitions of Ford brand dealerships are available here: Ford brand dealerships.
Ford Motor had about 8,600 Ford brand dealerships globally as of the end of fiscal year 2023, according to the 2023 annual report.
This figure has significantly decreased since 2013, down from 11,000 locations in 2013 to just 8,600 as of 2023. The decrease represents a drop of 20% over the last ten years.
Ford-Lincoln Brand Dealerships Worldwide
The definitions of Ford-Lincoln brand dealerships are available here: Ford-Lincoln brand dealerships.
Ford-Lincoln brand dealerships amounted to just 500 locations as of the end of fiscal year 2023, the lowest level ever measured over the last ten years.
This figure has reduced by nearly 50% since 2013, down from 900 locations in 2013 to just 500 as of 2023, according to Ford’s annual reports.
Lincoln Brand Dealerships Worldwide
The definitions of Lincoln brand dealerships are available here: Lincoln brand dealerships.
Ford Motor’s Lincoln brand dealerships are the only dealerships that have seen an increase in the global number. For example, the Lincoln brand dealerships has almost doubled since 2013, up from nearly 200 locations in 2013 to 385 as of the end of fiscal year 2023.
Growth Rates Of Ford Brand And Lincoln Brand Dealerships
The definitions of Ford brand and Lincoln brand dealerships are available here: Ford brand dealerships, Ford-Lincoln brand dealerships, and Lincoln brand dealerships.
Among the different types of dealerships, only the Lincoln brand has recorded positive growth in most periods. On average, the number of locations for Lincoln brand dealerships has grown by 14% annually since fiscal year 2019.
On the other hand, Ford brand and Ford-Lincoln brand dealerships have recorded mostly negative growth rates in most periods, suggesting that their locations have been declining.
On average, Ford brand and Ford-Lincoln brand dealerships have decreased by 4% and 10%, respectively, per annum since fiscal year 2019.
Conclusion
Globally, Ford’s total number of dealerships have decreased over the last ten years, from 12,000 locations in 2013 to just 9,500 locations as of the end of fiscal year 2023, representing a decline of 20%.
However, when we looked at the brand breakdown, we saw that Ford Motor’s Lincoln brand dealerships have nearly doubled from 200 locations in 2013 to 385 as of 2023. The Lincoln brand is the only brand that has seen its locations increasing over the last ten years.
Of all the different types of brand, Ford brand dealerships have made up the majority of Ford Motor’s total locations, contributing to 90.7% of the total or 8,600 locations as of the end of fiscal year 2023.
References and Credits
1. All financial figures presented in this article were obtained and referenced from Ford’s SEC filings, earning releases, annual reports, investor presentations, etc., which are available in the following location: Ford shareholders page.
2. Pexels Images.
Disclosure
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