Motorola Ends Franchise Tie With Ducommun Unit

Ducommun Inc. said that it will lose about $25 million in sales because Motorola Inc. has decided not to renew a franchise agreement with Ducommun’s largest operating division, Kierulff Electronics. The franchising agreement expires in the spring of 1987.

Kierulff sells Motorola semiconductor and computer system products at 17 locations nationwide. Ducommun spokesman Mark Jorgensen said Motorola products account for less than 6% of the company’s sales, which totaled $417 million for the 1985 fiscal year, Jorgensen said.

There was no explanation for Motorola’s decision, but Jorgensen speculated that the reason for the cancellation was a belief by Motorola that its products were “over-distributed.” Two other distributors of Motorola semiconductors were also canceled, Jorgensen said.

No layoffs are planned as a result of Motorola’s action, Jorgensen said, and negotiations are under way with other companies “to fill that void in the very near future with expanded franchises.” About 50% of Kierulff’s business is generated through similar franchising agreements, Jorgensen said.