Fresh off news that Ford Motor Company was raising prices by an average of $502 per vehicle, the Dearborn automaker told dealers that the company would significantly increase incentives. The goal is to keep older vehicles like the Mercury Milan and Ford F-150 moving off dealer lots while also appeasing a hurting dealer network. Ford plans on using marketing dollars to target specific regions of the US where a particular vehicle may be struggling. That may mean that in Chicago you can get $2,000 on the hood of a Milan, but in California incentives could reach $3,000. CNW Marketing Research President Art Spinella points out to The Detroit News that this selective spend approach is a lot like what new top marketing guy Jim Farley did successfully during his time at Toyota.
After looking at all the red arrows in January's "By the Numbers" report here at Autoblog, we're guessing Ford isn't the only company looking to bump incentives. How many times do Toyota, Honda, and Nissan all report down sales in the same month? At least Ford bumped prices first so the upcoming price battle could be mitigated somewhat.
[Source: The Detroit News]