Ford's Incentive Response - Litited 0% 60 Month Financing

DETROIT April 1, 2003; Joseph White writing for the WSJ reported that Ford Motor Co. , responding to rival General Motors Corp.'s (GM) latest discount offers, said it will offer 0% financing for 60 months on several models, including the Ford Explorer sport-utility vehicle and Ford F-150 pickup trucks.

In addition, Ford will promote a "$5 a day" lease on its Mustang coupe and Ford Ranger small pickup.

That promotion alludes to company founder Henry Ford's 1914 decision to pay his workers $5 a day, a substantial pay hike at the time and a move widely credited with spurring the growth of the American middle class. Mr. Ford's reasoning was that with higher wages, his workers could afford the cars they built. Ford is celebrating its centennial this year.

The Mustang and Ranger leases will be 48-month contracts requiring a 10% down payment. Annual mileage is limited to 12,000.

However, Ford isn't matching GM's across-the-board 0%, 5-year financing deal. For example, Ford's popular SuperCrew F-150 truck will have only a $2,000 discount and 2.9% interest for 60 months