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.