Ford's Cutback in U.S. Dealerships to Widen to 300

Sept. 10 (Bloomberg) -- Ford Motor Co., the second-biggest U.S. automaker, said it expects to reduce U.S. dealerships by about 300 this year, 50 percent more than initially intended, under a plan to eliminate excess outlets.

The company originally had expected the number to decrease by about 200 this year, spokesman Jim Cain said today in an interview. Ford had about 4,300 Ford, Lincoln and Mercury dealerships in the U.S. in January.

The reductions are occurring through a combination of closings, mergers and so-called dualing, where it combines Ford, Lincoln and Mercury dealerships in a single location, Cain said.

Ford has said it has too many U.S. dealerships, especially in metropolitan areas where they compete against each other. The Dearborn, Michigan-based automaker began the reduction program before Chief Executive Officer Alan Mulally assumed the post a year ago. Ford has said the effort is voluntary.

U.S. sales of the Ford, Lincoln and Mercury brands fell 32 percent to 2.72 million cars and light trucks last year from 4.01 million in 2000, according to Autodata Corp.

The trade publication Automotive News reported Ford's revised figure on the dealership cutbacks earlier today.

Ford shares were unchanged at $7.52 at 4:02 p.m. in New York Stock Exchange composite trading. They have gained less than 1 percent this year.