Lexington, KY - At a time when hundreds of car dealerships around the country are closing their doors, consolidating brands or laying off employees, one longtime Kentucky dealer is expanding his operations in Central Kentucky.
Bill Collins Ford Lincoln Mercury is merging its Lexington facilities into one state-of-the-art dealership located next to the Brannon Crossing shopping center on Nicholasville Road in Jessamine County. "Lexington is a great market, a growing market," says company president Kevin Collins, whose father founded the dealership that bears his name in 1959. Fixed operations began in mid-January at the new two and a half acre facility. Vehicle sales are expected to begin by the end of the month or in early February, according to Collins, who is also chairman of the Kentucky Automobile Dealers Association.
The dealership's sales department has been located in the old Man O' War Ford building on Nicholasville Road in Lexington while the service department was some distance away in a separate facility off Tiverton Way, which Collins admits was "a terrible way to operate a business." Now, both will be together in the new location "like a normal dealership should be designed," says Collins. In addition, and for the first time, the dealership will have its own body shop, which is usually a reliable profit center. Collins Ford Lincoln Mercury continues to operate its original dealership on Bardstown Road in Louisville, billed as the nation's "largest Ford dealership under one roof."
Collins' apparent gamble, that the national economy and the automobile industry will rebound soon, has impressed Ronald Jackson, President of the Kentucky Automobile Dealers Association, which is based in Frankfort. "I think it is encouraging for the industry and for Central Kentucky to see a dealer with enough confidence to make such an investment," said Jackson.
Despite tight economic times, Collins thinks he has benefited from good timing. "We were able to purchase the land and secure financing at a good rate before the financial crisis got dicey," he said. Still, some might question why he is plunging head first into a new, expensive business venture in the midst of the worst financial crisis in decades. "We believe Ford Lincoln Mercury products and the parent company that build them are on the right path," suggested Collins. "Even though we are in very difficult times, we have great faith in Ford Motor Company to provide excellent products, with great quality, reliability, durability, styling and price point to meet the needs of consumers," he stated.
Try telling that to Kentucky residents, many of whom have lost their jobs or are fearful of losing them. But Collins believes vehicles will wear out eventually or prove to be inefficient and customers will want to buy again. So, he continues to push the company slogan: "Price sells cars. Service keeps customers."
"It's not going to be easy," he said. "We've been in the automobile business for 40 years and we've seen a few difficult times and we'll do it the same way that we did it in the past. We'll be responsive to what consumers want."
As America heard during the recent auto industry bailout hearings in Washington, Ford appears to be in better financial shape, relatively speaking, than General Motors and Chrysler. Ford may be able to come back sooner than the other members of the Big Three who seem to be teetering on the brink of bankruptcy. "I think [Collins] recognizes that if there ever was a good time to buy one of his cars it's probably now. People can get a better deal than they ever could have imagined a year ago," said Jackson.
Having shut down factories across North America and laid off hundreds of thousands of workers, Ford, GM and Chrysler are now trying to weed out weak car dealers in various markets. Since all automakers are producing fewer cars, trucks, vans and SUVs, they don't need as many places to sell them as before. But every time a dealer quits business it can be a blow to a community. Kentucky auto dealerships are often among the most important businesses in a city or town, the biggest radio, TV and newspaper advertisers and community leaders, whether it's sponsoring Little League teams or leading a local blood drive. A self-assured, expanded car dealership like Collins Ford Lincoln Mercury certainly stands out in the crowd. "We'll just have to do it one day at a time, one vehicle at a time, one customer at a time," said Collins.
Collins feels that with the new Jessamine County operation he can give his customers a much better sales and service experience, build a stronger base and weather the sick economy. It's a roll of the dice he can't afford to lose.