Ford plans to offer low-interest loans to encourage sales of the new version of its iconic Mustang sports car when the vehicle goes on sale this autumn, according to a newspaper report.
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Steve Lyons, president of Ford’s “blue oval” division, told the Financial Times that such schemes could last from six to 12 months.
“We will probably launch with modest incentives but they’ll probably be interest rate programmes,” he told the paper.
The FT said the disclosure is a further sign that Detroit’s executives accept they are unlikely to sell a planned wave of new products in the US this year without resorting to some level of consumer financing incentives and is also another indication that, while incentive levels have moderated in recent months, US consumers still expect deals from carmakers.
Jesse Toprak, director of Edmunds.com pricing and market analysis, told the Financial Times Ford needed to offer some incentives on the new Mustang because the US sports car market was becoming more competitive.
He reportedly said: “There will be many loyal purchasers of the Mustang who’ll buy without any incentives but the goal is to keep market share in the sports car segment so in order to stay competitive you have to lure buyers from your competitors.”
The FT noted that the new Mustang, the first new version of the car in a decade, accounts for less than 5% of Ford’s total US sales but the carmaker considers the vehicle vital to its efforts to attract customers to its full range because of the Mustang’s resonance in US motoring culture.
Art Spinella, president of Oregon-based automotive forecaster CNW Marketing, told the paper: “I think the Mustang will do very well so I’m a little surprised they’d be putting incentives on so quickly. But they obviously want a very strong start to the vehicle.”
The FT noted that Ford has sold more than eight milllion Mustangs since the model was launched 40 years ago. Edmunds.com said the current model accounts for 27% of the US market for two-door sports cars priced less than $35,000, the report added.
Ford has pledged to sell the basic Mustang, equipped with a V6 engine, for less than $20,000, making it one of the most affordable sports cars in the US, the Financial Times (FT) said.
