Ford on Tuesday said that it has increased the incentives on its new F-150 pickup, just two months after the model went on sale, including offers aimed at owners of Chevrolet and Dodge pickups, Reuters reported.
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Ford spokesman Jim Cain told the news agency the F-150 was now offered with a loan rate of between 0.9% and 2.9%, 2% lower than before.
“We’ve got the best truck in the market, bar none, and we’re feeling aggressive,” Cain reportedly added. “Our revenue management models tell us we have a volume and market share opportunity.”
Reuters said Ford also broadened a $US1,000 “loyalty bonus” it had offered to Ford pickup owners to include anyone who owned a Ford vehicle built after 1997 and is offering the same bonus to owners of Chrysler’s Dodge Ram pickups and General Motors’ Chevrolet Silverado pickups, who trade in their vehicles for a new F-150.
But Reuters noted that, uUnlike its competition, Ford is still not offering any blanket cash rebates or 0% loan deals for the F-150, which is Ford’s best-selling vehicle and a key driver of its profits.
And all the new deals exclude the four-door SuperCrew version of the truck and the old versions of the F-150, which are still being sold as Heritage models, the report added.
Reuters noted that, when the new F-150 was launched, analysts questioned how much profit Ford could get from the truck given its higher assembly costs and the cut-throat competition in the US market but Ford executives said the truck would provide a higher profit margin than the old model.
Ford sold about 36,000 F-150 trucks in September, Reuters added.
