Ford, GM Offer Fresh Incentives in Bid to Boost Sales

DETROIT May 21, 2003; Dow Jones is proporting that Ford Motor Co. and General Motors Corp. are offering up more sales incentives for consumers and dealers amid growing concern that the sluggish economy is weighing down auto sales, Wednesday's Wall Street Journal reported.

In a sales program targeted to dealers, Ford is offering payments of $500 to $1,500 to meet certain sales objectives on the Ford F-150 pickup and the Ford Explorer, two of the nation's most popular vehicles. Dealers could pocket Ford's incentives. But they tend to use the money to lure consumers, often with deals that lower monthly payments.

Savvy shoppers could press dealers for potential savings, especially late in June when dealers are working hard to meet the pre-determined sales goals.

Dealers in some parts of the country say they can earn even more cash from Ford if they move bigger numbers of passenger cars. Ford's latest incentives end June 30. A Ford spokesman said the company is using the deals to strengthen sales in May and June.

The Ford program follows General Motors' decision to fatten consumer rebates in the past few days.

In some parts of the country, dealers report GM adding $500 in Memorial Day cash discounts for consumers, bringing rebates to $3,500 for the popular Chevrolet Suburban and Tahoe sport-utility vehicles. GM has also begun promoting a previously announced program allowing qualifying shoppers to take GM vehicles for overnight test drives.

A GM spokeswoman declined to comment on the company's incentives or on Ford's program.

U.S. auto makers are struggling for ways to reconnect with car shoppers who have turned a cold shoulder to the latest 0%-financing deals. While Detroit suffers, foreign rivals who relied less heavily on discounts to drive traffic have managed to sustain sales and hold market share.