SouLRioT
07-05-2005, 01:26 PM
http://quote.bloomberg.com/apps/news?pid=10000006&sid=aqwU66oa1plE&refer=home
July 5 (Bloomberg) -- Ford Motor Co., the second-biggest U.S. automaker, will match General Motors Corp. and DaimlerChrysler AG's Chrysler in offering an incentive through Aug. 1 that gives all buyers the same discount as employees, a spokesman said.
The program, called the ``Ford Family Plan,'' will begin tomorrow and apply to 2005 models, spokesman David Reuter said in an interview. Earlier today, GM said that its program, which contributed to a 47 percent increase in June U.S. sales, will be extended to August 1. Chrysler, which like Ford didn't match GM's program in June, begins its offer tomorrow.
``GM is forcing the others to roll it out, and it just stresses the competitive pressures that have been brought to bear in the market,'' said Wil Stith, a portfolio manager at MTB Investment Advisors in Baltimore, who helps manage about $2 billion in fixed-income assets including Ford and GM debt. ``The gains could be fleeting, but it was a good ploy from GM.''
GM and Ford, the two biggest U.S. automakers, have tried several new programs this year to reverse market share losses to competitors such as Toyota Motor Corp. and Nissan Motor Co. Ford has lost U.S. market share for 28 straight months, and declining sales prompted Ford to twice lower its earnings forecast this year, most recently on June 21. Ford's first quarter profit fell 38 percent.
The company now expects full-year profit, excluding some one- time costs, of $1 to $1.25 a share compared with an original forecast of $1.75 to $1.95 in January. Ford doesn't make forecasts for net income. On May 5, Standard & Poor's cut its ratings on Ford debt to junk status, BB+.
Mustangs Not Included
Under the Ford offer, customers will be offered reduced prices and cash rebates. For example, the XLT version of the Ford Escape sport-utility vehicle will have a discounted price of $23,335 compared with the normal $26,070, Reuter said. Customers will be offered an additional $2,000 off, putting their final cost at $21,335, he said.
Dealers are being notified today of the plan's details, and the first advertisements will go out tomorrow, Reuter said. The program doesn't apply to Ford Mustang and GT cars and the hybrid Escape sport-utility vehicle, he said.
GM's June employee discount offer helped lift U.S. industry sales for the month to an annual rate of about 17.5 million cars and trucks, from 15.4 million in June 2004 and 16.7 million in May, according to AutoData Corp. of Woodcliff Lake, New Jersey.
Ford's sales in June rose 0.7 percent. Its U.S. market share fell to 17.2 percent from 19.8 percent a year earlier.
GM shares rose 18 cents to $34.91 at 2:57 p.m. in New York Stock Exchange composite trading. They have fallen 13 percent this year. Ford rose 9 cents to $10.40.
July 5 (Bloomberg) -- Ford Motor Co., the second-biggest U.S. automaker, will match General Motors Corp. and DaimlerChrysler AG's Chrysler in offering an incentive through Aug. 1 that gives all buyers the same discount as employees, a spokesman said.
The program, called the ``Ford Family Plan,'' will begin tomorrow and apply to 2005 models, spokesman David Reuter said in an interview. Earlier today, GM said that its program, which contributed to a 47 percent increase in June U.S. sales, will be extended to August 1. Chrysler, which like Ford didn't match GM's program in June, begins its offer tomorrow.
``GM is forcing the others to roll it out, and it just stresses the competitive pressures that have been brought to bear in the market,'' said Wil Stith, a portfolio manager at MTB Investment Advisors in Baltimore, who helps manage about $2 billion in fixed-income assets including Ford and GM debt. ``The gains could be fleeting, but it was a good ploy from GM.''
GM and Ford, the two biggest U.S. automakers, have tried several new programs this year to reverse market share losses to competitors such as Toyota Motor Corp. and Nissan Motor Co. Ford has lost U.S. market share for 28 straight months, and declining sales prompted Ford to twice lower its earnings forecast this year, most recently on June 21. Ford's first quarter profit fell 38 percent.
The company now expects full-year profit, excluding some one- time costs, of $1 to $1.25 a share compared with an original forecast of $1.75 to $1.95 in January. Ford doesn't make forecasts for net income. On May 5, Standard & Poor's cut its ratings on Ford debt to junk status, BB+.
Mustangs Not Included
Under the Ford offer, customers will be offered reduced prices and cash rebates. For example, the XLT version of the Ford Escape sport-utility vehicle will have a discounted price of $23,335 compared with the normal $26,070, Reuter said. Customers will be offered an additional $2,000 off, putting their final cost at $21,335, he said.
Dealers are being notified today of the plan's details, and the first advertisements will go out tomorrow, Reuter said. The program doesn't apply to Ford Mustang and GT cars and the hybrid Escape sport-utility vehicle, he said.
GM's June employee discount offer helped lift U.S. industry sales for the month to an annual rate of about 17.5 million cars and trucks, from 15.4 million in June 2004 and 16.7 million in May, according to AutoData Corp. of Woodcliff Lake, New Jersey.
Ford's sales in June rose 0.7 percent. Its U.S. market share fell to 17.2 percent from 19.8 percent a year earlier.
GM shares rose 18 cents to $34.91 at 2:57 p.m. in New York Stock Exchange composite trading. They have fallen 13 percent this year. Ford rose 9 cents to $10.40.