Construction of the 2072sq m workshop building is part of the first upgrade the Andersons Bay Rd site has had in more than two decades.
Eventually, it will feature 17 service bays, plus an interactive, glass-walled area between the showroom and workshop, equipped with an underground hoist.
"This makes everything visible to our customers.
It's just like taking your car to the doctor for an appointment and we give it a check-over with you there and diagnose it on the spot," general manager Robert Bain said.
Development of the showroom, which will combine the sales and service area, is expected to be completed by Dunedin construction company Naylor Love by November.
"That's one of the big changes, having us all under one roof," Mr Bain said.
An 85-year-old company, Dunedin City Ford has operated on the site since 1958.
About 300 people attended the workshop function last week.
