• Apr 17, 2009
Is that 'B' as in bankruptcy or 'B' as in bailout? Probably 'B' as in both. Regardless of the buzzword you choose to slap on the respective situations General Motors and Chrysler find themselves in, it's not good, and Ford realizes this fact just as clearly as the rest of us. In response, the Blue Oval has embarked on a new plan to pick up as much market share as possible.

In an internal memo sent to Ford dealers in New York, the automaker laid out a new incentive that would pay current owners of Dodge, Chrysler or Jeep vehicles an extra $1,000 – in addition to whatever Customer Cash, Bonus Cash and 0% APR is already available – to trade in their current rides for a new SUV, pickup or crossover from Ford.

As pointed out by Detroit News columnist Daniel Howes, this tactic is a bit of a slippery slope for Ford. Although the Dearborn-based automaker has yet to seek out or accept any financial assistance from the government, a bankruptcy at either General Motors or Chrysler could put a major dent in Ford's own perilous financial footing. Still, Ford will take all the sales it can get.

[Source: Detroit News]


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  • 35 Comments
      • 5 Years Ago
      Well from their perspective I could see why they are doing it I mean some one needs to profit. Although Market share should be nabbed from foreign marks in order for it to be seen as a win.
      • 5 Years Ago
      They have to walk a fine line. They don't want to piss off GM loyalists enough that, when they can no longer buy a Pontiac, they just say "well screw it, if it's not GM, I may as well buy a Honda." But there's nothing wrong with marketing their adherence to "a great tradition of private enterprise" or some other thinly veiled reference. I also think they've been quiet about it because of the very real possibility they will ask for a loan in the Fall.
      • 5 Years Ago
      They need to be working on conquests from Toyota and Honda, not GM and Chrysler.
      • 5 Years Ago
      Good move by Ford, but they should have included sedans too, what with the new Fiesta, Fusion, Taurus, and Mustang. That would have made the deal a whole lot better. Overall, though, this is still a very clever and good marketing move!
      • 5 Years Ago
      When GM and Chrysler fail Ford will pick a lot of market share. Especially large work trucks like F250, F350 and F450 .
        • 5 Years Ago
        Well if they take their suppliers down with them, it might affect Ford too. Where will Ford get their parts supplies from in that scenario to build cars?
      • 5 Years Ago
      I wish Ford would count on quality product (Mondeo, Euro Focus, Falcon) for conquest sales rather than electronic gimmicks, ugly appliances, and their rivals bankruptcy.

      But remember, FORD is the one that said if GM goes bankrupt, they will be forced too as well.
      • 5 Years Ago
      On the plus side, at least someone in Detroit gets that sales are the real way out of this mess, and that real competition still works. This is no time for soft ball.
        • 5 Years Ago
        I predict if Ford runs ads saying "buy our cars because we didn't declare bankruptcy", the Obama administration will come in and hammer them. The Feds didn't throw all that money into keeping the big 3, suppliers and car loan initiators and backing the warranties of the big 3 to have Ford undercut their efforts by implying the other two are already nonviable.

        And I'm not saying it's fair either. But that's reality.
      • 5 Years Ago
      Probably because Ford's car sales are doing relatively OK, what they can't for the life of them move any Explorers.
      • 5 Years Ago
      That is the problem right now. In order to sell cars the domestic manufacturers need to throw insane incentives on the hood to move any vehicle. You can buy a Fusion almost anywhere with $6,000 off and 0% financing for 72 months. That is also eligble for the Ford makes you payments if you lose your job deal.

      Ford will not be able to stay out of bankrupcy for long if it has to continue to give its cars away. It is also killing the residual value of any car you buy from a domestic manufacturer.
      • 5 Years Ago
      Why would Ford limit this deal to buyer os trucks, SUVs and crossovers? Why no love for the sedan?
        • 5 Years Ago
        Sean... what got Chrysler, Ford, and GM into trouble is that they banked on SUV's having strong sales for eternity. They were trying to tap what they believed was an insatiable demand. Also, the Big 3 are / were being subsidized by the government to produce gas-guzzling vehicles. Go figure, they failed. It was poor planning and insight by both our government, and the Big 3.
        • 5 Years Ago
        They got us in this mess? No. Idiot consumers and idiot lenders got us in this mess. A $40,000 family car costs the same amount as a $40,000 SUV.
        If someone wants to buy an SUV or 4-door truck to go back and forth to work they'll do it whether or not there are extra incentives.
        The problem is people buying things they can't afford, the problem isn't WHAT they are buying.
        • 5 Years Ago
        I was wondering the same thing. SUVs and trucks are freakin' lame. Most people don't need them, and it was that whole mess that got GM and Chrysler into trouble in the first place.
        • 5 Years Ago
        Because profits are fatter.
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