Ford Slashes Finance Rate

DETROIT, March 5 Reuters is reporting that the Ford Motor Co. is slashing finance rates on most of its vehicles in a bid to prop up sales and stay competitive with cross-town rival General Motors Corp.

In a statement released late Monday, Ford said it was cutting its finance rate on 48-month loans to 2.9 percent from 3.9 percent and lowering the rate on 60-month loans to 3.9 percent from 4.9 percent.

Some Ford models, including the Focus sedan and Windstar minivan, will be offered at even lower financing rates under the new incentives program which will remain in effect from March 6 through April 8, Ford said.

The cuts by the world's No. 2 automaker match discounts announced by GM last Friday and continue an incentives battle started by GM after the Sept. 11 attacks in New York and Washington.

GM, the only Detroit automaker to book a profit last year, and Ford both have limited offers of zero-percent financing on 36-month loans and are using cash rebates as well as cheap financing to help pump up sales.