Mexican Association of Ford Distributors

The influential Mexican Association of Ford Distributors presided by Oscar Adad is about to win an important battle to the CEO of Ford Mexico, Gabriel Lopez. It has come to the attention of the treasury and economic authorities in Mexico that Gabriel Lopez maybe violating trade laws and  employing unorthodox methods, such as breaking the one price policy, to bring death to tens of dealerships and avoid meeting the financial obligations inherent in franchise agreements that must prevail in the sector and not just distribution agreements. A clear symptom of all this, is the recent resignation of Legal Affairs Director in Mexico, Ramon Garibay, effective as of July 31st.The obvious lack of law knowledge and of the Mexican market, exhibits the CEO from Argentina, who has led the plant to try to impose his terror network policies based on unilateral decisions that explain about the poor performance of the brand in Mexico, which has lost 6 points of market share in the last 4 years to put Ford in a market share numbers of only 8.8%. Such policies include: increasing the limits on lines of credit without prior consent of Distributor, restrictions on incentive payments and cancellation of such a unilateral, multiple penalties for breach of the dealer draconian policies, investment requirements and additional costs and the most serious, written notice of termination without previous notice, regardless of the amount of investments, jobs affected and Agency seniority.

Ford offers high-tech communication...

In Mexico, unlike the U.S., Ford Motor Company has not had the success of recovery experienced in other mature and emerging markets, a strategy which allowed the manufacturer to timely, get out of imminent bankruptcy in less than three years and right in the middle of a global economic crisis, without the U.S. government bailout as used by their counterparts General Motors and Chrysler.Ford offers high-tech communication, design, equipment, product variety and quality, which positions their products among the preferences of car consumers in the world, but does not convince the Mexican consumer. In fact, the brand has been falling more and more in its market penetration, and brands like Volkswagen, Nissan, Toyota, Honda and General Motors had taken advantage of it. The reason; poor marketing policies and the lack of knowledge of the Mexican market among the brand managers in the country led by Gabriel Lopez, which adds a deteriorating plant-dealers relationship. He is obsessed with destroying the one-price policy, which would result in a further drop in sales, with a side effect of the damage and reduction of the dealer network. Will the real interest of the Argentinian is to end with the brand in Mexico and become the first major market to come out by negligence? Ford recovery in the U.S vs. Mexico:

Gabriel López, President and CEO of Ford Motor Company Mexico

The oneness, strength and leadership that has characterized the Ford Dealer Network in Mexico is becoming the main headache of the President and CEO of Ford Motor Company Mexico, Gabriel Lopez. Rumor has it, that he could be replaced soon from Detroit. Alan Mulally cannot be please with him, and his inability to improve the company numbers in Mexico, the failure of their trade policies have seriously damaged the Network and could affect more than 12,000 thousand workers, many of them, a 3rd and 4th generation in the lines of  Ford. And the Argentine, with its arrogance and ignorance of the Mexican market, far from replicating the success and record sales experienced by the global brand, has lost 6 points of share in the last two years. All of the above has made Ford lost positions in the top 5 ranking, when traditionally in Mexico was in the top 3.

Ford Motor Company in Mexico

Mexican government authorities on competition, review sanctions against Ford Mexico and other OEMs (original equipment manufacturers). 
From the weakness of the Mexican automotive market,-which now sells about 800 000 units, similar to the marketed 10 years ago, it is adduced that the car factories are looking for alternatives to improve their numbers.Some of them, proactive and committed to the market development, have opted to strengthen its policies of financial support to dealers and after-sales and service in customer benefit. However, several have taken  some adverse business positions as lowering market margins to the agencies, forcing them to operate in a situation of mere survival, others by increasing the price of their products and services above the world average, in such order, that the schism in the distributive automotive sector is reaching levels that concerns the authorities and Mexican entrepreneurs.Negatively, highlights the case of Ford Motor Company in Mexico, which is a clear example of business malpractice and lack of vision. Its President, Argentine Gabriel Lopez, seems determined to complicate things for its distributors, distorting the market, keeping away the customers and ensuring that Ford's market share goes down.During his term, Mexico is the only market in which Ford does not reflect the success of U.S. policies to grow stronger and gain market share, and  the reason is that the assembler has increased prices to the public by 30% specially when the sector is in crisis, but also that from 2008 to 2011 it loss of market share was 6 points from 14.8% to 8.8%, because they have ignored the needs and preferences of local consumers.Lopez also aims shielded from an apparent policy of the dealer suggested retail price, unleashing a fierce price competition among its dealer network, it seems the policy sole purpose is getting rid of a good part of them, without payment of compensation or settlement from the manufacturer to the marketer, obviously, businesses will be left alone in their battle, in clear detriment of the consumer.

What is happening in Mexico?

What is happening in Mexico? Public opinion in this country begins to make accusations that Ford Mexico is in clear violation of the code of ethics and global policies of Ford Motor Company. There is talk that Ford Mexico claims to its network to compete and achieve a self-destruction policy with its new "MSRP" (manufacturer´s suggested retail price), which breaks with the good practice carried so far of “one-price”. It begins to sprout up to the CEO of the plant in Mexico, Gabriel Lopez, and that dealers are winning the battle because the Network has held together and is offering a single price to the consumer, which also gives assurance to customers of the brand in Mexico. Ford is certainly making great numbers in the U.S. and its evolution is more than clear, never the less, this is not reflecting in any way in a market always important to them, like Mexico.

El Sol de México / Los Capitales

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