After Slower-Than-Expected April Sales, Ford Launches New Incentives on Its SUVs and Minivans

DEARBORN, Mich. May 6, 2004; The AP reported that after slower-than-expected April sales, Ford Motor Co. has launched new incentives of $1,000 plus no-interest financing on its sport utility vehicles and minivans.

The program is called "The Choice" and gives buyers alternative incentives on the vehicles.

Buyers of the Explorer, Excursion and Expedition SUVs and the Freestar minivan can get a $1,000 rebate plus no-interest financing. They can choose the continuing incentive of a $3,000 rebate or a no-interest five-year loan. And they can get an additional $1,000 rebate if they finance through Ford's lending arm.

Ford's U.S. vehicle sales fell an unexpected 4.6 percent in April from a year ago as an aging car lineup continued to hurt business. The nation's No. 2 automaker said car sales fell 8.8 percent from April 2003, while truck sales fell 2.4 percent.

Industrywide, sales rose 0.8 percent from April 2003. Some analysts had forecast an increase of up to 5 percent, based on the economic recovery and the tax-refund season. Instead, high gasoline prices and the lack of new incentives apparently slowed demand, they say.

The average incentive at General Motors Corp., Ford and DaimlerChrysler AG's Chrysler unit was $3,961 in April, down from $4,033 in March, according to a report Thursday in The Detroit News.

Vehicle inventories are above the desired 60-72 days at the domestic Big Three, according to auto analyst Rob Hinchcliffe of UBS. Ford's inventories were 91 days, GM's 88 days and Chrysler's 83 days, he said.

"Bloated inventory requires either more sales or less production," analyst Gary Lapidus of Goldman Sachs told the Detroit Free Press.

GM's Truckfest promotion offers a $1,000 rebate plus zero-percent financing on loans of up to five years on 2004 GM trucks. It also has rebates of up to $3,500.

Chrysler has a $1,000 loyalty bonus to returning customers who buy 2005 Chrysler 300 Series sedans. It also has a $1,000 rebate to 2005 minivan buyers, plus $1,000 to those buying any 2005 Chrysler or Dodge model who finance the purchase through Chrysler.