The Ford Motor Co. announced new incentives last Wednesday for the 2007 lineup. The automaker is also offering auto purchasers cash back on the just-launched 2008 Ford Taurus and Mercury Sable sedans.
The 2008 Ford Taurus was previously called the Five Hundred. Ford CEO Alan Mulally determined that Ford's strategy to redesignate new cars in the lineup with new names beginning with the letter F - as in Focus, Fusion, and Freestyle - was not a clever marketing move. The new F names were not as popular to be associated with Ford in the United States, and purchasers were confused by the name changes.
Mulally believed the Taurus had strong brand equity. Changes made to the new Taurus include enhanced , newly styled front end, signature three-bar chrome grille, and the 263 hp 3.5 L Cyclone engine from the Edge.
The Mercury Sable, the Taurus sedan twin, was revived from the Mercury Montego. Changes to the new Sable include a new front end, 3.5 L Cyclone engine from the Edge, and the replacement of the continuously variable transmission (CVT).
The offers, available through the ninth of July, are part of Ford's 'Summer Drive' sales event nationwide. According to the Dearborn-based company, the offers include zero-percent financing for 36 months on 2007 Ford, Mercury and Lincoln vehicles, or up to $2,500 cash back on select models; and an additional $2,007 cash on 2007 trucks and sport utility vehicles, excluding the Ford Edge, Freestyle and E-Series van, and the Lincoln MKX.
The automaker is also is putting money on the hood of 2008 models, including a $1,500 cash rebate on F-Series SuperDuty regular cab and super cab pickups or $1,000 on crew cab models. Additionally, Ford is offering $1,000 cash on 2008 Ford Escape and Mercury Mariner compact SUVs. That is a bit of a surprise because the redesigned vehicles have been available only a few months and are selling well. Ford's offer of $500 on the Taurus and Sable, launched in the previous week, is a semaphore that even the most recent vehicles often need discounts right out of the gate.
"They're not even at the dealerships yet, (but) $500 is a pretty nominal amount," said analyst Erich Merkle of IRN Inc. in Grand Rapids. "June is going to be a weak month for the industry as a whole, and Ford has really been much weaker than the industry on average."
Ford spokeswoman Jim Cain said that the moves are not unusual. "We've launched lots of vehicles with a cash incentive," he said. "Every year, you have model year end clearance, and the traditional time to begin is around the Fourth of July."
Aside from its summer offers, Ford is also backing auto industry's aim to boost environment friendly lineups. Ford and the Chrysler Group, trying to reinforce their green credentials as pressure intensifies for them to manufacture more fuel-efficient vehicles, said last Wednesday that they had joined a group calling for mandatory reductions of greenhouse gas emissions.
The two domestic automakers joined the General Motors Corp. in the United States Climate Action Partnership - a group of large U.S. businesses and environmental groups. The group has called on Congress to establish a target for reducing carbon emissions and a national program to accelerate technology research, among other ideas.
"Now is the time for advancing a national approach to climate change where all of us - individuals, industry and government - take action toward reducing emissions of greenhouse gases," said Tom LaSorda, Chrysler Group's president and CEO.
Ford said that its decision to join is part of its commitment to reduce the country's reliance on foreign oil and reduce carbon emissions.
