Ford (F): More Incentives, Bad News

One of the things Ford (F) CEO Alan Mulally wanted to do at the car company was cut the use of incentives. They can cost auto firms as much as $5,000 per vehicle. Average incentive per car runs about $2,400 for US car-makers.

Things have not worked out as Ford's US sales keep falling and the domestic car market gets tough due to a bad economy and rising full prices.

According to The Detroit News "Ford will sharply increase incentive spending this year to counter aggressive pricing by competitors and ensure that demand for older vehicles like the Ford F-150 and Mercury Milan remains strong."

Mulally's idea was nice while it lasted.

Douglas A. McIntyre