It's a no-brainer
Forced to choose, Jersey dealer picks Toyota, sends Ford packing

By Amy Wilson
Automotive News / July 04, 2005


Dealer dilemma

Here are 4 reasons Autoland gave up its Ford franchise.

1. Toyota wanted more room.
2. Ford wouldn't accept reduced space for its brand.
3. Autoland lacked real estate to expand.
4. Autoland's Ford sales have dropped sharply in the past decade.




One of the East Coast's biggest auto dealers is giving up his Ford franchise to make room for his burgeoning Toyota business.

Donald Toresco, who sold Fords for 23 years, was wrapping up a Ford clearance sale last week at his enormous Autoland store in Springfield, N.J., near New York City. Toresco turned the franchise back over to Ford Motor Co. because Toyota wanted a bigger piece of his highly trafficked suburban real estate.

"In a face-off with Toyota, Toyota crunches Ford," said Sheldon Sandler of Bel Air Partners, a Princeton, N.J., investment firm specializing in dealership acquisitions. "No surprise to anybody, but here's real living proof."

The clearance sale made for a public ouster of the Ford name. Radio and newspaper advertisements say: "Autoland is giving back its Ford franchise."

That language didn't go down well at Ford Motor headquarters.

"Frankly, the wording here in this ad is not what you'd like to see," said Ford spokesman Dan Bedore.

The demise of Autoland Ford underscores the challenge Ford faces from foreign brands in the Northeast and West Coast. Ford's falloff has been especially steep in those markets, already rife with domestic dealers.

Autoland, about 20 miles west of Manhattan via the Lincoln Tunnel, is on Route 22 - a busy commercial corridor bulging with stores, restaurants and more than a dozen car dealerships. Autoland's Ford real estate was too valuable to devote to a brand with declining sales and market share, Sandler said.

About nine months ago, Toresco scaled back his Ford business after Toyota pressed for more space, according to a source. Ford representatives objected to the reduced presence and told dealership officials they had to restore the space, find a buyer for the point or resign the franchise, the source said.

With the dealership's expansion possibilities on Route 22 limited by surrounding development, Toresco chose Toyota over Ford.

Toresco did not respond to numerous requests for an interview last week. But a customer service representative at his dealership confirmed that Autoland was dumping Ford to expand the Toyota franchise

 

That will never happen in Texas. Texas is Ford country.

 

Money talks, even in Texas, or is that especially in Texas.

Clint

 

The public's preception is that Toyota can do no wrong. That however is far from the truth! This past month's Consumers Reports had an interesting report buried on page 49(August 05). It states that some of Toyota/Lexus engines have a problem with sludge build-up. The engines listed were installed in 1997-2001 models with either the 3.0L V-6 or the 2.2L 4cyn. Consumers say the the automaker initially blamed the problem on poor care and resisted covering costs.

If the sludge problem had been on a Ford product it would of made Consumer's cover and newspaper headlines as well. By the way on Consumers Report it also informs the readers (page 11) the following recalls from Toyota;

01-04 Toyota SUVs and pickups

Front suspension problems could hinder steering and cause crash.

Models: 774,856 vehicles including 01-02 4Runner,01-04 Tacoma, and 02-04 Sequoia and Tundra. Hazard exists because front suspension lower ball joint could wear excessively and become loose,resulting in increased steering effort. If the lower ball joint separates completely,driver could lose steering ability.

Here I thought the Japan's trucks were made by super humans and only American trucks had problems! Go figure!

One should ask themselves if this were Ford or GM would it make headlines?
Or would it be overlooked as in Toyota's case
Fred

2005 Ford F-150 Lariat 4x4

 

While it is true that many people will swear by brands for their reliability, it can be agreed that no one manufacturer produces flawless vehicles.

The suspension and sludge problems you are bringing up are commonly known flaws that Toyota enthusiasts are well aware of. The simple truth is that the suspension problems typically occur after a very prolonged period of time. It is also much less common than you make it out to be. I work on these "flawed" vehicles everyday and I have seen only one case where the problem persisted (on a vehicle with over 300,000 miles).

Please don't trust what you hear from Consumer Reports.

You may be right that Toyota's problems don't make headlines because they are trying to preserve their reputation for making quality vehicles. While I don't necessarily agree with it, I still believe they make the highest quality vehicles (with the least amount of flaws) on the road.

 

I can understand why a dealer would give up Ford rather than Toyota. If you have limited capacity, you sell what gives you the most profit per unit. You can sell Toyotas with smaller discounts and rebates so the per unit profit is more.

I wanted to replace my old Toyota PU with a new Tundra but I bought a nicer and much better equipped Ford for about the same price even though it stickered for $5,000 more. The Toyota dealer was also arrogant and offered me almost nothing for my T-100 (sold it to the first person who looked at it for double their offer).

 

I am breaking down your post, not to be picky, it’s just that you posted a lot of concepts.

Quote:

Originally Posted by kev7706

While it is true that many people will swear by brands for their reliability, it can be agreed that no one manufacturer produces flawless vehicles.

Obvious, and we all agree.
I’ve even had problems on Mercedes, and Cadillac that can be attributed to design, if not flaws, then weak points.

Quote:

Originally Posted by kev7706

The suspension and sludge problems you are bringing up are commonly known flaws that Toyota enthusiasts are well aware of. The simple truth is that the suspension problems typically occur after a very prolonged period of time. It is also much less common than you make it out to be. I work on these "flawed" vehicles everyday and I have seen only one case where the problem persisted (on a vehicle with over 300,000 miles).

Not completely, check the Toy forums. They disagree with that, although ‘brand loyalty’ is so high that they will excuse almost any problem, and say it’s not a big thing. Halo effect.
I think that as a person with a vested interest “ I work on these” you might not be the most disinterested observer… Not calling you on it, but it must be considered.
And all the Ford problems are magnified many, many times over. That’s just the way it works.

Quote:

Originally Posted by kev7706

Please don't trust what you hear from Consumer Reports

You can take that to the bank. Sadly, they are the biggest supporters of Toyota.
It’s nothing to do with quality, good or bad. It’s the ‘anything but American’ mindset of the left.

Quote:

Originally Posted by kev7706

You may be right that Toyota's problems don't make headlines because they are trying to preserve their reputation for making quality vehicles. While I don't necessarily agree with it, I still believe they make the highest quality vehicles (with the least amount of flaws) on the road.

Halo effect. Toyota GOOD, American BAD. Notice even Japanese cars with American badges are considered bad.
As to the highest quality cars, maybe in certain specific categories. Even there I question it. They don’t have near the quality for the dollar as some ‘Rice Burners’ made in Canada, for example. And if dollars don’t count, don’t even think of comparing them to Mercedes, Cadillac, Lexus, Infinity, (I know, but they aren’t badged as Nissan and Toy, and that’s what you are comparing.)
Even Honda gets better marks among many consumers.
Toyota is a good car. But it’s not a great car. If it cost 70% as much, out the door, then it would be a great car. For what you pay for them, it’s barely above average.
Would I drive a Toyota? Sure, I’ve owned about 6 including 4 trucks.
Nothing wrong with them, and much right about them. But the idea that they are ‘handed down by God’ which is what most editors, and hype people seem to think is absurd.
Again Halo principle.
Afraid we get a bit of it here on the Ford forums too. Oh well, it makes life interesting.
Chris

 

Don't forget, this was a business decision, not one driven by the relative competitive strengths of the products. Walk into a Toyota Dealership, offer them invoice for a Tundra Crew Cab, and you'll get laughed out of the door. Priuses are sold in relation to MSRP (as in how much over), not invoice. The list goes on, but the fact of the matter is Toyota's gross profit per unit is so far over Ford's it's not even true. If the dealer were averaging the $2500-$3500 gross profit/unit on Fords as he was Toyotas (I'm guessing- could even be higher than that), he would have found the dirt to build a new facility.

 

You can go to the Ford website and build your truck and it will give you MSRP and dealer invoice (doesn't make sense to me) and you can go to the Toyota webcsite and they give you the MSRP only but with a warning that the dealer sets the price. That tells me that Ford's dealer invoice is their real MSRP as they tell the retail customer where the negotiating starts. Many Toyota dealers add dealer packs to their retail price and negotiates down to the MSRP. Hugh difference in profit margins between the two brands.

 

From experiance, you don't pay sticker at most Toyota places. You pay sticker PLUS.
That leads to false comparisons. If two models of car have the same sticker price, they are compared to each other in reviews. But one might sell for 60% of sticker, and the other for 120%.
So they should not be compared. The problem is, that would require thinking and research on the part of the reviewers. Not gonna happen.
Chris

 

My latest new Toyota purchase was 1200 below whatever you wanna call 'invoice'... pays to go in on a cold rainy day in November.

I told them they could keep the dealer added on cargo extender... so it was thrown in to.

Clint

 

Depends what it was...but I'm holding a bit of scepticism there. Unlike Ford, Toyota will go after a dealership for selling too cheap- there are no firesales in the land of Toyota, because Toyota sez so (cheapens the brand).

 

Chris, since youve owned multiple Toyotas and now own an F-150 what has your experience been with each and how do you feel they compare in terms of reliability/quality? Thanks