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Automobile Dealer Sales and Service Agreement

 

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Title:

Automobile Dealer Sales and Service Agreement

Entities:

Ford Motor Co.; United Auto Group Inc.

Date:

2002

Size:

Preview shows 9KB of 152KB total

Price:

$63

ID:

#137829

 

 

► Corporate ► Franchise ► Auto Dealer Franchises
► Miscellany ► Fortune 100
► Consumer ► Auto & Truck Manufacturers

 

 

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AUTOMOBILE DEALER
SALES AND SERVICE
AGREEMENT

{PAGE}
[FORD LOGO] FORD MOTOR COMPANY


_________________________Region



FORD SALES AND SERVICE AGREEMENT
{TABLE}

{S}{C}
AGREEMENT made as of the ____________________________________________ day of __________________________________, _________,

by and between ____________________________________________________________________________________________________________
(Name of Entity)

___________________________________________________________________________________________________________________________
(State whether an individual, partnership or corporation) (Show name of the State in which incorporated or registered)

doing business as _________________________________________________________________________________________________________
(Trade Name)

and with a principal place of business at _________________________________________________________________________________
(Street Address) (P.O. Box)

___________________________________________________________________________________________________________________________
(City) (County) (State) (Zip Code) (P.O. Box Zip)

{/TABLE}

(hereafter called the "Dealer") and Ford Motor Company, a Delaware corporation
with its principal place of business at Dearborn, Michigan (hereinafter called
the "Company").

PREAMBLE

The purpose of this agreement is to (i) establish the Dealer as an
authorized dealer in COMPANY PRODUCTS including VEHICLES (as herein defined),
(ii) set forth the respective responsibilities of the Company in producing and
selling those products to the Dealer and of the Dealer in reselling and
providing service for them and (iii) recognize the interdependence of both
parties in achieving their mutual objectives of satisfactory sales, service and
profits by continuing to develop and retain a broad base of satisfied owners of
COMPANY PRODUCTS.

In entering into this agreement, the Company and the Dealer recognize that
the success of the Company and of each of its authorized dealers depends largely
on the reputation and competitiveness of COMPANY PRODUCTS and dealers' services,
and on how well each fulfills its responsibilities under this agreement.

It is the opinion of the Company that sales and service of COMPANY
PRODUCTS usually can best be provided to the public though a system of
independent franchised dealers, with each dealer fulfilling its responsibilities
in a given locality from properly located, adequate, well-equipped and
attractive dealerships, which are staffed by competent personnel and provided
with the necessary working capital. The Dealer recognizes that, in such a
franchise system, the Company must plan for the establishment and maintenance of
the numbers, locations and sizes of dealers necessary for satisfactory and
proper sales and service representation in each market area as it exists and as
it develops and changes. At the same time, the Company endeavors to provide each
of its dealers with a reasonable profit opportunity based on the potential for
sales and service of COMPANY PRODUCTS within its locality.



{PAGE}


The Company endeavors to make available to its dealers a variety of
quality products, responsive to broad wants and needs of the buying public,
which are attractively styled, of sound engineering design and produced on a
timely basis at competitive prices. The development, production and sale of such
products require that the Company and its manufacturing sources make large
continuing investments in plants, equipment, tools and other facilities,
engineering and styling research and development, quality control procedures,
trained personnel and marketing programs. Heavy commitments must also be made in
advance for raw materials and finished parts. For purposes of making these
investments and commitments, planning production and estimating costs for
setting prices, the Company assumes in advance an estimated volume of sales for
each of its products. Within each year, it develops production schedules from
orders submitted by its franchised dealers and its and their best estimates of
the market demand for COMPANY PRODUCTS.

In turn, each of the Company's franchised dealers makes important
investments or commitments in retail sales and service facilities and equipment,
in working capital, in inventories of vehicles, parts and accessories, and
trained sales and service personnel based on annual planning volumes for their
markets.

If satisfactory volumes for either the Company or a dealer are not
realized, each may suffer because of commitments already made and the cost of
manufacturing and of selling each product may be increased. Each dealer must
give the Company orders for the products needed to serve its market. The Company
seeks to adjust production schedules, to the extent feasible, to fill dealer
orders, and to allocate fairly any product in short supply, but inevitably both
the Company and its dealers suffer loss of profits to the extent they cannot
meet market demands. Thus, the automotive business is a high risk business in
which the Company, its manufacturing sources and its dealers can succeed only
though cooperative and competitive effort in their respective areas of
manufacturing, sales, service and customer satisfaction.

Because it is the dealer who deals directly with, and develops the sale of
COMPANY PRODUCTS to the consuming public, the Company substantially relies on
its dealers to provide successful sales and merchandising programs, competent
service operations and effective owner relations programs. To do this, dealers
must carry out their responsibilities of establishing and maintaining adequate
wholesale and retail finance plans, new and used vehicle sales programs, parts
and service sales programs, personnel training and supportive capitalization and
working capital. To assist its dealers in these responsibilities, the Company
establishes and periodically updates standards of operation and planning guides
based on its experience and current conditions. It also offers sales and service
training courses, advice as to facilities, counseling in the various phases of
new and used vehicle merchandising, parts and service merchandising, leasing,
daily rentals and facilities development. It also conducts national advertising,
promotional and other marketing programs and assists dealers in developing
complementary group and individual programs.

To enable the Company to provide such assistance, it requires dealers to
submit uniform and accurate sales, operating and financial reports from which it
can derive and disseminate analytical and comparative operating data and advice
to dealers. The Company also solicits dealers to bring to its attention through
their National Dealer Council organization any mutual dealer problems or
complaints as they arise.

Because the Company relies heavily on its dealers for success, it reserves
the right to cease doing business with any dealer who is not contributing
sufficiently to such success. Similarly, the Company recognizes that its dealers
look to it to provide competitive products and programs and that, if it does not
do so, any dealer may elect to cease doing business with the Company.

The Company has elected to enter into this agreement with the Dealer with
confidence in the Dealer's integrity and ability, its intention to carry out its
responsibilities set forth in this agreement, and its desire to provide
courteous, competent and satisfying sales and service representation to
consumers for COMPANY PRODUCTS, and in reliance upon its representations as to
the persons who will participate in the ownership and management of the
dealership.

The dealer has elected to enter into this agreement with the Company with
confidence in its integrity and ability, its intention to provide competitive
products and assist the Dealer to market them successfully, and its desire to

 

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