Jane Martinson in New York 

Ford joins dealers to sell online

Ford Motor Company yesterday joined some 4,200 American car dealers to launch FordDirect.com, an online car sales company which will compete against independent websites in the US.
  
  


Ford Motor Company yesterday joined some 4,200 American car dealers to launch FordDirect.com, an online car sales company which will compete against independent websites in the US.

The joint venture with the Ford Dealer Council, a trade body for dealers in the world's second largest car manufacturer, will allow buyers to order a customised car or truck and arrange delivery. The buyer will be referred to a local dealer for final delivery and customer service.

Wall Street analysts said the move reflected the difficulties facing websites as laws in most US states insist final referrals on car sales go to local dealers.

One US analyst, who refused to be named, said FordDirect.com was a way for dealers themselves to "keep up with the times" after initially seeing online sales as a threat.

"It would be much more efficient to just bypass the middleman but it can't be done in this country," he said.

The new company, with an independent board of directors, will be jointly owned by the dealers and Ford, although the dealers will retain control.

Jerry Reynolds, chairman of the national Ford Dealer Council, called the deal "unprecedented" as it represented "the first instance of a Fortune 500 company and its distribution channel joining forces to create an independent internet company".

GM, the world's largest car manufacturer, has expressed an interest in setting up a similar company.

It was unclear whether the website, which will start selling cars in California next month, will offer price comparisons with other manufacturers.

One attraction of independent sites, such as Carpoint and Authobytel, is their claim to feature a wide range of goods. Amazon.com announced earlier this week that it plans to offer cars and trucks on its website.

 

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