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Article: Franchise laws pose challenge for Ford.
- Article from:
- Automotive News
- Article date:
- July 21, 1997
- Author:
CopyrightCOPYRIGHT 1997 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Complex state franchise laws create an obstacle course for Ford Motor Co. as it attempts to establish factory-controlled dealerships.
The company has proposed forming two new retail corporations by merging the dealerships in Indianapolis and in Salt Lake City, and other cities are in the works. Ford would have controlling interest in the new ventures.
The company says it merely wants to experiment in a few markets to keep abreast of a revolution in auto retailing. But some dealers say Ford's plan, if broadened nationwide, would undermine the national franchise system.
At least half the states ban or restrict factory ownership and operation of ...