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Scranton Ford, 118 Linden St., closed its service department Wednesday and will cease sales on Tuesday, owner Bill Rosado said.
"The dealership is being sold back to the manufacturer," Mr. Rosado said. "I negotiated what I thought was a very good deal with them. I was happy with it."
The move puts 14 people out of work. It reflects continuing transition in the automotive business, which was rocked this year as two of the nation's three automakers sought bankruptcy protection.
"This is a way to consolidate (dealerships) without a lot of pain," said David Cole, chairman of the Center for Automotive Research, a Michigan think tanks that tracks the industry. "They've wanted to reduce their footprint in metropolitan areas."
Scranton Ford's closing leaves just one Ford dealership in Lackawanna County, Gibbons Ford in Dickson City.
"Ford handled the whole thing. They are actively trying to reduce their (dealer) count through these voluntary deals," said John Grow, managing partner at Gibbons Ford. He said Gibbons and other regional Ford dealerships contributed financially to the buyout deal.
"Hopefully, I'll have more business," Mr. Grow said.
Efforts to reach a spokesman for Ford, which is based in Dearborn, Mich., were unsuccessful. The company, the only U.S. automaker that avoided government aid and bankruptcy, reported third-quarter revenue of $997 million this week, including $357 million in pretax profits.
Scranton Ford's transition did not result from poor sales, said Mr. Rosado, who declined to discuss the terms of the settlement.
"It was a very astute way to consolidate the market," he said. "It will make the company and the remaining dealers stronger."
Ford's presence at Linden Street and Franklin Avenue dates at least to 1964. Owners of Linden Ford constructed the building in 1966 that houses the current car lot and the dealership became Koerner Ford in 1968. Koerner was succeeded by Champion Ford and Tom Hesser Ford before Mr. Rosado acquired the dealership late in 2005.
Scranton Ford employed 23 full- and part-time workers. Eight of the employees will transfer to other Rosado Group dealerships, Mr. Rosado said, and 14 will be displaced.
Scranton Ford's closing demonstrates the changes the industry has experienced since Chrysler filed for bankruptcy reorganization in April and General Motors followed in May.
Chrysler, for instance, severed ties with hundreds of dealerships nationally and at least three regionally: MotorWorld in Plains Twp.; Pompey Dodge in Kingston and Ertley Dealerships in Moosic.
The industry transformation also has downsized the Rosado Group's franchise holdings. Two of its other dealership, Clarks Summit Chevrolet and Wilkes-Barre Dodge, closed last year. The company now has five dealerships, including Dickson City Hyundai.
Mr. Rosado, who leases the Scranton Ford site, declined to specify his plans for the location.
"We will be keeping control of the property," he said. "Something else will go in here. It's going to be automotive-related."
Contact the writer: jhaggerty@timesshamrock.com
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