Ford to consolidate dealer networks

Ford Motor Co. plans to extend its North American restructuring to its retail network by consolidating dealerships in 18 major markets.

The move comes as Ford's declining U.S. market share leaves its 4,300 U.S. dealers fighting for a piece of an ever-smaller pie.

Ford officials confirmed the plan Monday as Ford stock surged back into positive territory for the year after a prominent Wall Street analyst upgraded his rating for the company's stock.

Bear Stearns analyst Peter Nesvold upgraded Ford to "outperform" from "underperform" on the promise of an accelerated North American restructuring plan that is due out next month.

"We expect (Ford) to re-emerge in September with a more aggressive turnaround," Nesvold said. "We think investors will warm up in hurry to a restructured Ford."

Spokesman Jim Cain said Ford's restructuring must extend to the company's dealer network.

"Our goal is to work with our dealers to build a business model that's profitable for them, profitable for us and sustainable across the business cycle," he said. More at Detroit News