Here’s the death clause:
“Because the Company relies heavily on its dealers for success, it reserves the right to cease doing business with any dealer who is not contributing sufficiently to such success. Similarly, the Company recognizes that its dealers look to it to provide competitive products and programs and that, if it does not do so, any dealer may elect to cease doing business with the Company.”
Of course, they can void their dealer agreement. However, if they demanded the franchise conduct 1 or more multi-million dollar upgrades to conform to the agreement along the way, and they were always compliant, they’ll have to bought-out at FMV, they can’t just stop sending them cars. And don’t forget that some mom-and-pop / single point dealers have dealer agreements that were executed 50+ years ago, and aren’t subject to amendments.
Long-and-short, set your Westlaw notifications for Ford and Ford Franchisees, and we’ll see how it all plays out.
Yeah but Tesla had no dealers to begin with. These small business tyrants aren’t going down without a fight. I honestly think Ford might end up taking an L on this one without the government getting involved somehow.
Ford is starting a new business…with no dealerships.
yes i’m sure business at Förd will go swimmingly.
I could see it. You underestimate how many people would prefer getting a root canal to car negotiation.
oh on the consumer side i think it would be a godsend. i’m just pessimistic on if the grubby little bastards at the dealerships won’t sabotage it somehow.