Ford matches GM's offer on interest-free loans

DETROIT, Feb 7, 2005; Reuters reported that Ford Motor Co. will match General Motors Corp.'s offer of interest-free loans for up to five years on most sport utility vehicles and some pickup trucks, the No. 2 U.S. automaker said on Monday.

Ford, which saw sales drop 5.4 percent last month, is offering interest-free loans on Explorer, Expedition and Excursion SUVs, and the four-door F-150 SuperCrew pickup truck, spokesman Dave Reuter said.

"This is keeping us competitive," Reuter said.

Ford also is giving away a Dell Inc. desktop computer with the purchase of its 2005 model-year Focus sedan, in addition to a $2,000 cash rebate on the car.

GM, which lost U.S. market share last month even as sales rose 1.1 percent, said last week it would offer interest-free loans for terms of 37 months to 60 months on most mid-size and full-size sport utility vehicles and on pickup trucks.

Ford and GM entered 2005 with high inventories of unsold vehicles and trimmed targeted production this quarter after posting weak January sales.

U.S. vehicle sales across the industry fell to a seasonally adjusted annual rate of 16.2 million units, down slightly from the 16.3 million rate a year earlier.