Ford Again Attempts to Taper-Off Incentives

02 August 2006

The Ford Motor Company, currently reeling from an unexpected $123 million (€96.36m; £65.83m) second-quarter net loss, on Monday ended its Drive On Us national incentive promotion.

But much as it might wish to go 'cold turkey' incentive-wise, this is not something America's second largest indigenous automaker dare risk in the light of its 2006 unsold vehicle inventory.

However, regional promotions are still de rigueur, according to company spokeswoman Whitney Drake. Ford will now slice its clearance promos into regional efforts, such as a sale customized to the US Southwest. Details of these regional promotions were not forthcoming, however.

Ford is set to launch its 2007-model lineup of vehicles and hopes to shift product by offering lower sticker prices rather than variable incentives, Drake says. Some price tickets could be $4,000 lower, such as on the Expedition SUV range for example.

However incentives are unlikely to disappear completely and will lurk unsung as a backstop for Ford's 2007 range, should it be necessary.

Data sourced from Wall Street Journal Online; additional content by WARC staff