Ford Fires Latest Shot in Price War,
Monday January 6, 1:03 pm ET,

DETROIT (Reuters) - Ford Motor Co. (NYSE:F - News) launched a new consumer incentives program on Monday, matching a move by crosstown rival General Motors Corp. (NYSE:GM - News) that carried Detroit's price war into the new year.

As with GM, which introduced new incentives on Friday, Ford said it is raising cash rebates by $1,000 to a total of $3,000 on some vehicles.

The world's second-largest automaker also said it is cutting loan rates by one or two percentage points on several vehicle lines.

But Ford also scaled back on the availability of interest-free loans. The company had offered zero-percent financing for up to five years on the four-door version of its popular Explorer sport utility vehicle in December. Under the new program, which runs through February, that vehicle will only have zero percent for three-year loans.

Auto sales have been a pillar of support for the wobbly U.S. economy ever since GM rolled out zero-percent financing offers and bigger than usual cash rebates after the attacks of Sept. 11, 2001.

Ford and the Chrysler side of DaimlerChrysler (NYSECX - News; XETRACXGn.DE - News) have largely matched GM's offers, including the interest-free loans. But they have been reluctant players in a pricing battle that has eroded their profitability.

"It's a big effect on the bottom line," James Padilla, who heads Ford's North American operations, told reporters on Monday.

Ford Chief Operating Officer Nick Scheele, in comments at Detroit's international auto show on Sunday, said incentives were becoming a growing factor in auto sales worldwide, not just in the U.S. market.

"It's in Europe as well and in Japan," Scheele said. "Incentives are a way of life."

 

I hope they match it. I ordered 12/31 so any increas in the incentives will be a help. It looks like they have come out with a $500 package discount in some areas but who knows what the new incentives will be.

 

does anyone know where these areas are or has anyone seen them at the dealers yet?

 

I sure hope the incentives at least match the current ones that expire today. I ordered my new truck 12 weeks ago today and it has been off the train and sitting in the auto yard in Toledo for 1 week as of today. If not, I may rethink just keeping my 01.5. I guess we'll find out soon. :

 

Call your dealer and tell them to call the yard and ask them to mark it "hot". I do this all the time. When my last truck was built it got from mexico to centreville, Ill. railyard in exactly 7 days and they loaded it and brought it out right when it came off the train 8)

 

They didn't respond... &gt; <br><br>At least they extended the previous offer though... So still only $1,000...

 

Funny thing, my truck made it to the dealer yesterday afternoon, just in time for the current incentives to expire. It took one week from the time it was unloaded at the auto yard to reach the dealer appx. 120 miles away. Like rebby said at least they extended the $1000 cash back but not the holiday bonus $500. The dealer forgot to order the tow package and it will be at least Friday before they can get the Mopar hitch installed and the truck prepped. I assume this will be the same hitch as the factory one. Luke S, do you or anyone else with this same experience know if the hitch will be the same as the one installed at the factory? &gt;