Amid the worst downturn for car dealers in decades, two Ford dealerships in San Diego said yesterday that they will merge operations next month and lay off an undetermined number of employees.
Pearson Ford will merge with Kearny Mesa Ford, part of Sunroad Automotive, a San Diego-based dealership group with six auto franchises in San Diego County and three in Mexico.
The merged entity will change its name to Kearny Pearson Ford and will operate from Kearny Mesa Ford's facility at 7303 Clairemont Mesa Blvd.
Pearson's dealership at Fairmount Avenue and El Cajon Boulevard will be closed and the land sold, said John B. McCallan Jr., owner of Pearson Ford.
McCallan, who has owned the dealership since 1984, said such mergers are inevitable given the tough economic climate for automakers and dealers. Financial terms of the deal were not disclosed, but McCallan described it as a merger of assets.
“We began talking to each other many months ago about the concept and, recognizing how challenging the market is, this is the best outcome for us and for our customers, too,” he said.
The combined dealerships employ about 250 people. McCallan, who will serve as managing dealer at Kearny Pearson Ford, said there will be layoffs, but the number has not been determined.
Sales of new cars and trucks countywide this year will be about 17 percent lower than last year, according to a report released last month by the New Car Dealers Association San Diego County. Sales have dropped 33 percent since the peak of the market in 2004.
In San Diego County, Ford sales dropped 25 percent over the past year; Chrysler, 42 percent; Dodge, 33 percent; Chevrolet, 28 percent; and Hummer, 50 percent.
The association projects sales will drop an additional 3.5 percent in 2009.
Wayne Meyer, president of Sunroad Automotive, said the merger will help shrink the county's Ford dealership market, which now stands at 11 dealers.
“Eliminating a dealer from the mix strengthens the remaining dealerships,” Meyer said.
Penni Crabtree: (619) 293-1237; penni.crabtree@uniontrib.com
