Ford Rolls Out New Rebates

DETROIT November 16, 2005; Reuters reported that Ford Motor Co. on Wednesday rolled out a new incentive program that cuts thousands of dollars off most of its new cars and trucks.

The new incentives follow cross-town rival General Motors Corp.'s "Red Tag" sale, which allows anyone in the United States to buy vehicles at the same price employees of GM's auto parts suppliers pay. GM, which announced the deal on Monday, has led Detroit's profit-draining price war for four years.

Ford's program, called the "Keep It Simple" plan, will be available through January 3. It comes after Ford and GM suffered a 23-percent decline in U.S. October sales and lost market share to Japanese rivals.

Ford said it will display the final price of the vehicles on window stickers, offering consumers a no-haggle car buying experience. The stickers will show how the price differs from the manufacturer's suggested retail price, and will include all cash rebates.

The program includes all 2005 and 2006 models, except the Ford Fusion, Lincoln Zephyr, Mercury Milan, Ford Mustang and Ford GT.

For example, Ford said the price of the 2006 model-year Lincoln Navigator has been reduced by $6,428 to $46,747.

Ford is also, for the first time, including the hybrid versions of the Ford Escape and Mercury Mariner SUVs in the incentive program.

The Escape Hybrid will sell for $26,104, which is $1,411 less than its suggested retail price, Ford said.

(Additional reporting for Reuters by Jui Chakravorty)