Ford Doubles Consumer Rebate for 1997 Taurus

12/30/96

Reuters reports that Ford Motor Company announced that it had doubled the rebate it will pay to buyers of its 1997 Taurus. Analysts say the move is Ford's attempt to ensure that the Taurus remains the best-selling car in America for one more year. A Ford spokesperson said that the company will pay $1,000 to buyers of the 1997 Taurus, as of December 13. The incentive program will run through April 2.

The spokesperson, Joy Wolfe, said that Ford raised the incentive to keep prices competitive with other manufacturers: "now that the '96s are pretty well cleared out, the dealers are concentrating more on '97, and we wanted to make sure they were competitive with what other manufacturers are doing."

If the Taurus wins the coveted title of best-selling car in America for another year, it will have claimed that title five consecutive times. After the first ten months of 1996, Taurus sales preceded sales of its nearest rival--the Honda Accord--by nearly 10,000 units. Sales of last year's redesigned Taurus, however, got off to a slower-than-expected start.

Dean Witter analyst Ron Glanz said, "it's my judgment that Ford is offering rebates to keep the sales crown." Glantz indicated that Ford's $1,000 rebate on the Taurus is becoming an annual tradition, and that other manufacturers are offering even bigger rebates. He added, though, that "Honda is not offering rebates."

Wolfe said the rebate should have more impact on the first quarter of 1997 than on the current fourth quarter. Ford's plants closed for the holidays on December 20 and aren't building new cars, currently. She said the new rebate on the 1997 Taurus will cost the company less than the 1996 model incentive, which included the $1,000 rebate plus other carryover rebates: "It's fully contained within our plan for our marketing for first quarter."

Paul Dever -- The Auto Channel