The manufacturer has to pay for all the warranty work that a service shop does. Also all those incentives and rebates that you see advertized comes out of the pocket of the automaker. GM/Ford/Chrysler/Honda/Toyota etc.. are required by the franchise agreements to guaranty the dealership makes money off of every car it sells. If the car goes out below invoice, the maker has to pay the dealership the difference. Also the manufacturer pays for all the marketing and advertizing including the local commercials.

Reducing the number of dealer's cuts out some of these expenses. Not to mention if you are cutting brands and downsizing you do not need as many outlets to sell your product.

The good news is that Ford sales are going up and Ford is expected to increase production in the next 2 quarters. That means that some of these dealers can become Ford/Lincoln Stores and ulimately get back in business.