11-23-2006, 03:14 AM
Ford to Change Pricing Strategy
The Daily Auto Insider
Wednesday, November 22, 2006
November 2006
Ford plans to shift to "clear pricing" ââ¬â setting prices to where they would be without incentives ââ¬â on all Ford, Mercury and Lincoln vehicles by 2008, The Wall Street Journal reported, citing John Felice, general marketing manager for the Ford brand.
The move is an attempt to decrease reliance on incentives by aligning sticker prices more closely with actual transaction prices, the story said.
Felice said the new system will allow Ford to "step away from the heavy incentives" while also helping to boost resale values, which is a key "element that influences consumer perception" about quality.
Ford has already been gradually shifting the price of its vehicles downward, the story said. For example, the company recently launched its redesigned Ford Expedition with a starting price below $30,000.
also somewhat related to Ford,
Ford will cut back production at its Louisville Assembly Plant, where it makes the Explorer and Explorer Sport Trac, the Associated Press reported.
Demand for the Explorer has decreased over the past three years, and the vehicle's sales rate is well below the plant's capacity, the story said.
The Daily Auto Insider
Wednesday, November 22, 2006
November 2006
Ford plans to shift to "clear pricing" ââ¬â setting prices to where they would be without incentives ââ¬â on all Ford, Mercury and Lincoln vehicles by 2008, The Wall Street Journal reported, citing John Felice, general marketing manager for the Ford brand.
The move is an attempt to decrease reliance on incentives by aligning sticker prices more closely with actual transaction prices, the story said.
Felice said the new system will allow Ford to "step away from the heavy incentives" while also helping to boost resale values, which is a key "element that influences consumer perception" about quality.
Ford has already been gradually shifting the price of its vehicles downward, the story said. For example, the company recently launched its redesigned Ford Expedition with a starting price below $30,000.
also somewhat related to Ford,
Ford will cut back production at its Louisville Assembly Plant, where it makes the Explorer and Explorer Sport Trac, the Associated Press reported.
Demand for the Explorer has decreased over the past three years, and the vehicle's sales rate is well below the plant's capacity, the story said.