State Board Ruling Pleases Franchises in Valley : Ford Plan for New Dealership Delayed

A state regulatory body has ruled that Ford Motor Co. may not open up a new dealership in Van Nuys at least through July and possibly longer, thus ending a yearlong dispute with a group of San Fernando Valley Ford dealers.

Claiming that a seventh dealership in the area would siphon off customers and drive some local franchises out of business, six San Fernando Valley Ford dealers protested to the New Motor Vehicle Board--which regulates car dealerships--after Ford said it would establish a new dealership at 5201 Van Nuys Blvd.

The essence of the state’s order, which was praised by both sides, defers the opening of a new dealership until July 31, 1985, and for six-month intervals until December, 1987, so long as the present dealers maintain a sales performance commensurate with sales of the surrounding areas, including Los Angeles, Orange County and the San Gabriel Valley.

“We are very pleased with the agreement,” said Steve Shuken, owner of Vista Ford in Woodland Hills.

“We felt Ford was wrong,” said Bert Boeckmann, owner of Galpin Ford and the main negotiator for the six dealers. “Ultimately we reached an agreement by which we would be measured by a different yardstick than they initially measured us.”

Boeckmann said Ford’s sales in the Valley had previously been compared with the entire Southern California market including Las Vegas.

“It’s that change of thinking that has allowed us to resolve the issue to the dealers’ satisfaction and to Ford’s as well,” he said.

Robert Harnar, Ford’s regional director of public affairs, said: “Our effort in all of this is to improve our sales and service capabilities to our customers. If the dealers match what they say in the agreement, we should accomplish that goal. If they should fall below, they have agreed not to protest another dealership. I think it’s a mutually agreeable settlement of a controversy.”