The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-04-03
DEALER REVOLT
AT IRON RULE
FACED BY FORD
Reduced Profit, AutoCratiC
Control Bring Unrest,
Reports Indicate.

Rg Times Special
NEW YORK, April 3.-The clouds
Of rebellion are gathering on the
front line Of Henry Ford's sales or
ganization. There is revolt among
the dealers in many centers, says
the Business Week in its current is
sue, adding that estimates of defec-
ton from the Ford dealer ranks
vange high, especially in the south
nd middle west.
1.-The focal point Of the current
urmoil," says the Business Week.
is the Ford price reduction, which
-as accompanied by decrease IN
.ealer discounts from 20 per cent
20 I7l5 per cent. Ford prices were
reduced SIS to $50. but the lower
discount placed over 90 per cent OF
he reduction upon the dealer, to be
AIKEN from his already meager
ross profit.
This action, following long years
of absolute domination by the fac
.ory and followed, in turn, by re-
newed efforts to regulate the deal
er's business according to factory
wishes, seems to have been the
spark which set off the rebellion
long smouldering in the Ford dealer
ranks.
Policy Brought Success
serruo e,,,,.4o,,.o,,4o1 diFfic,,I+,, no
tween Ford and his dealers has
always been that Ford refused to
consider them the independent mer-
chants that they are, in theory. He
consistently refused to cultivate
them, to cater to their wishes, to ask
their advice. He considered them
in the same category as his factory
organization. He retained absolute
control, his word was law and he,
and he alone, could decide what to
do, when and how TO do it."
''This policy has been a financial
success. Ford has made money. His
employees are paid unusually well.
Ford dealers consistently have en-
joyed a highly satisfactory sales
volume. The autocratic spirit with
which Ford activities are carried
out, however, has made the work
irksome to most Independent souls
who come under his influence.
Workers Accept Oppression"
Factory workers complain of
conditions in Ford plants. but they
continue to mob his employment Of
fees because of the high wages he
pays. His dealers beWan the OPP
preston which has been their lot.
but accepted it and asked for more
because of the strength of the de-
mand for Ford cars.
Nov. apparently. conditions have
changed. Ford faces stronger and
better organized competition than
ever before. His dealers will not be
able to sit at their desks and ac-
cept orders during 1880; they will
have to work, and work hard, for
business.
Under these changing conditions
the Ford franchise does not look so
attractive. The more depressing ele-
ments of the work come to the sur
face and influence the dealers &C
ton"
Objections Set Out
specifically" adds The Business
Week. "many Ford dealers object to:
ND Roadmen who tour the country
and report all violations of factory
rules and enforce strict discipline
upon the dealer organization; %
reduced discounts by which the
possible margin for net profit has
been reduced to approximately in
E visibility; 90 treating contracts as
scraps of paper as was done with
the demand upon dealers to sign
riders to their franchises accepting
17ik per cent discount at the peril
tof their business lives; "a IRON
bound, factory-Set quotas which fire.
quently have little relation TO sales
possibilities in dealers territory, but
are never below them; 90 inclusion
of Lincoln cars and Ford trucks, in
quotas for localities where sales of
either may be practically imposSi-
BILE; CO. failure of factory to con-
slider dealers needs in distributing
- asss-zsd colors; Cd having to buy
equipment from rec
ord source regardless of
heed or price OF equipment;
bry exercising authority over
of money to be spent for
omS garages and similar in
nts IL the business.
here NAV be other objections
ch a more careful survey would
teal. These are enough to sug-
est that reported unrest in the
ford organization is no. entirely I'M
justified; that there are obvious
changes which might be made"