Incentive costs will top price increases, Ford says - Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars
Ford Forum Ford Forum

» Auto Insurance
» Featured Product
ยป Wheel & Tire Center

Go Back   Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > Latest Ford News and Racing News > Ford Worldwide News
Register Home Forum Active Topics Photo Gallery Auto Loans Garage Mark Forums Read Auto Escrow

FordForums.com is the premier Ford Forum on the internet. Registered Users do not see the above ads.
Reply
 
LinkBack Thread Tools Display Modes
Old 05-20-2003, 07:02   #1 (permalink)
Registered User
 
Stacy94PGT's Avatar
 
Join Date: Feb 2001
Location: The Hills of North Georgia,USA
Posts: 7,859
Incentive costs will top price increases, Ford says

Tuesday, May 20, 2003
By Bill Koenig / Bloomberg News

DEARBORN -- Ford Motor Co., the world's second-biggest automaker, won't be able to raise prices enough this year on Ford, Lincoln and Mercury vehicles sold in the U.S. to make up for the amount it spends on incentives.

Sales will fall short of "0% net pricing," Ford said in a slide available the company Web site. In January, Ford said it was planning for break-even net pricing, defined as prices after the amount that it spends on rebates and low-interest loans.

Competition on incentives "is even more intense" than executives expected, Chief Operating Officer Nick Scheele said at the start of an analyst meeting. Increased cost-cutting "will make up for" the increased incentive costs, he said. "It's an adjustment, not a detour."

The automaker also said an "escalation of competitive marketing incentives will lead to net pricing below" 1 percent for Ford-brand cars and trucks sold in Europe this year, according to the slide. In January, Ford said net prices in Europe would rise 1 percent.

General Motors Corp., the world's largest automaker, has been extending incentives to revive U.S. sales. Ford's bigger rival is waiving remaining lease payments for customers who buy another of its new models.

GM so far this month has given more than 300,000 discount coupons to employees and is offering six-year vehicle loans at 1.9 percent. It had an 8.6 percent drop in sales in the first months of 2003.

Ford reiterated its forecast for full-year earnings of 70 cents a share. The company had first- quarter net income of $896 million, or 45 cents a share. It had a net loss of 54 cents in 2002.

Ford spokeswoman Jennifer Flake confirmed the authenticity of the slide.
__________________
Stacy94PGT
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.

My next Ford.....
Stacy94PGT is offline   Reply With Quote
Sponsored Links
Advertisement
 
Reply

  Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > Latest Ford News and Racing News > Ford Worldwide News



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Ford family celebrates 100 years of cars Stacy94PGT Ford Worldwide News 0 06-10-2003 05:46
FORD TOUGH: The pressure's on for Bill Ford Jr. to finish first Stacy94PGT Ford Worldwide News 0 06-10-2003 04:52
'Henry had the dream' Stacy94PGT Ford Worldwide News 0 03-28-2003 05:58
A CENTURY OF VISION: Fords built city, changed the world Stacy94PGT Ford Worldwide News 0 03-12-2003 07:17
Ford Product-Led Transformation: 2003 RPO83 Trans | Driveline 0 07-22-2002 06:48

Powered by vBadvanced CMPS v3.2.2

All times are GMT -7. The time now is 09:54.



Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0
Garage Plus vBulletin Plugins by Drive Thru Online, Inc.