Ford is out to put a lid on costly incentives

  1. Welcome to GM Inside News Forum – General discussion forum for GM

    Welcome to GM Inside News Forum - a website dedicated to all things GM.

    You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, at no cost, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, Join GM Inside News Forum today!
     
Results 1 to 4 of 4

Thread: Ford is out to put a lid on costly incentives

  1. #1
    6.2 Liter LS9 Supercharged V8
    Join Date
    Aug 2003
    Posts
    8,848
    Thanks
    187
    Thanked 14 Times in 5 Posts

    Ford is out to put a lid on costly incentives

    Ford Motor's striking market-share plunge should be over within six months, and the company is banking on new products to regain share while allowing it to cut back incentives, CEO Bill Ford said Wednesday in an interview with USA TODAY.

    Boosting market share without also boosting rebates is almost unheard-of in today's discount-crazed auto market. Toyota is an exception, gaining almost a full percentage point this year while trimming its average incentive a few dollars, according to industry tracker Autodata.

    Ford Motor has lost ground because it's been trying to sell old models against rivals' newer designs, has failed to make its newer models look different than the old ones and hasn't offered a big enough variety of cars, Bill Ford said in a blunt assessment.

    "When you're trying to compete in a car segment with an old Taurus and not a whole lot else ... it's tough" to keep sales up, even with big incentives, he said.

    Ford said he's so intent on trimming the cost of incentives that he might let Chevrolet outsell the Ford brand this year, for the first time in 17 years, rather than pouring money into keeping Ford the best-selling brand in the USA. "I don't like to lose, but I'm not going to do anything crazy," he said.

    Through October, Ford Motor's Ford brand has sold just 23,083 more vehicles than General Motors' Chevrolet brand has.

    Ford, the great-grandson of founder Henry Ford, took over the world's No. 2 car company in October 2001. Since then, its share of U.S. new vehicle sales has fallen to 19.7% from 23.2%. That 3.5-point drop is equivalent to about 500,000 fewer vehicles. In the same period, Ford's incentives have nearly doubled to an average $3,611 per vehicle, according to Autodata.

    Toyota and Honda have largely escaped the downhill spiral, holding their incentives to an average of less than $1,000 per vehicle.

    Some of Ford's market-share loss has been because Ford cut back low-profit and no-profit sales to car-rental companies and other multivehicle fleet buyers. "Heck, we own Hertz. The easiest thing in the world would be for us to say, 'OK, Hertz. You're taking 50,000 of these this month, 75,000 of these in six months,' " Ford said. "In fact we're not doing that," and the percentage of Ford products in the Hertz rental fleet has declined.

    "We have the product now to go after share where we didn't before," he said, referring to seven models being launched this fall, including the redesigned Ford Mustang, Escape hybrid sport-utility vehicle and Five Hundred sedan.

    I like Bill Ford's candor

  2. Remove Advertisements
    GM Inside News
    Advertisements
     

  3. #2
    GMI Contributor Premium Member Ming's Avatar
    Join Date
    Jan 2003
    Location
    An Alternate Timeline
    Posts
    14,692
    Thanks
    0
    Thanked 1 Time in 1 Post

    Re: Ford is out to put a lid on costly incentives

    Boosting market share without also boosting rebates is almost unheard-of in today's discount-crazed auto market. Toyota is an exception, gaining almost a full percentage point this year while trimming its average incentive a few dollars, according to industry tracker Autodata.
    Proof that a focus on putting your profits into R&D provides longer term benefits than short-lived flashy commercials and red tag sales.

  4. #3

    Join Date
    Dec 2004
    Posts
    311
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: Ford is out to put a lid on costly incentives

    Quote Originally Posted by Ming
    Proof that a focus on putting your profits into R&D provides longer term benefits than short-lived flashy commercials and red tag sales.
    Yup.

    Well, that and not announcing completely redesigned ponycars while you've still got a mountain of unsold last year's model on hand...

    Your pal,
    Meat.

  5. Remove Advertisements
    GM Inside News
    Advertisements
     

  6. #4

    Join Date
    Dec 2004
    Posts
    22
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: Ford is out to put a lid on costly incentives

    Quote Originally Posted by meat
    Yup.

    Well, that and not announcing completely redesigned ponycars while you've still got a mountain of unsold last year's model on hand...

    Your pal,
    Meat.
    I myself love the new 05 and the "old" 04 but there are still people who hate the 2005 b/c they have no sence in the muscle car era. but anyway, there is an amazingly HUGE marked for the 2005, there are so many orders for them that the orders for small town dealers havnt taken place...my point is that there is still a big market for both cars

  7. Remove Advertisements
    GM Inside News
    Advertisements
     

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Chevy Closes In On Ford!
    By nsap in forum Global Chevrolet News
    Replies: 118
    Last Post: 03-03-2005, 07:03 AM
  2. New Ford models see brisk sales
    By paul8488 in forum Ford Motor Company Discussion
    Replies: 18
    Last Post: 12-04-2004, 11:48 PM
  3. Ford Sales October 2004
    By tgagneguam in forum Ford Motor Company Discussion
    Replies: 8
    Last Post: 11-05-2004, 04:08 PM
  4. Ford offers freebies on ABC 'Makeover' series
    By PontiacJ8 in forum Competition News
    Replies: 14
    Last Post: 11-05-2004, 07:47 AM
  5. GM, Ford Pare Back on Incentives
    By nsap in forum Automotive Industry & GM News
    Replies: 6
    Last Post: 11-03-2004, 11:10 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Powered by vBadvanced CMPS v4.1.2