Dealer OKs Ford buyout: Ron Rush Lincoln-Mercury closes; 35 workers lose jobs

Jul 08, 2008 (The Columbus Dispatch - McClatchy-Tribune Information Services via COMTEX) -- F | Quote | Chart | News | PowerRating -- Ron Rush Lincoln-Mercury has closed after 54 years in business, a victim of dealership consolidation by Ford Motor Co.

The North Side dealership, in its third generation of operation by the Rush family, accepted a buyout offer from Ford, which owns Lincoln-Mercury. The move puts 35 employees out of work.

The consolidation is in response to Ford's worsening profit margins. The company has been closing dealerships in metro areas where it has multiple car lots in close proximity. Ford purchased the remaining 26 vehicles on the Ron Rush Lincoln-Mercury lot, at 2350 Morse Rd., before closing the dealership.

"There is not enough volume to go around to make dealerships profitable," said George Pipas, a Ford sales analyst. "Our dealers opened at a point in time when we had 20 (percent) to 25 percent of the U.S. market share. Now it's more like 14 (percent)."

The combined market share for Ford and Lincoln-Mercury in central Ohio is 12 percent, said Marisa Bradley, spokeswoman for Ford.

Sales at Lincoln-Mercury dealerships nationwide have been dismal. In June, sales were down almost 24 percent from last year, according to a Ford sales report.

The year-to-date sales totals for the Lincoln and Mercury brands are down 23 percent, totaling just over 129,000 vehicles.

"There is no target," Bradley said, on how many dealerships will close. "We match the demand with what the market share is ... (and) figure out market by market."

The process is a voluntary one for dealers, Bradley said.

Even though Rush said he was still making a profit, faced with current market conditions and the offer of the buyout, he took the deal.

"It's good business," he said.

"If they ask a profitable store to close, they have to compensate us," Rush said. "Put it all together, it was a good financial decision for us."

Citing a confidentiality agreement Rush signed with Ford, he declined to comment on any details of the agreement.

The consolidation is the first for Ford in the Columbus area, Bradley said.

"This is not something you take lightly," Rush said on the decision to accept the offer.

blammers@dispatch.com

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