Ford Piles on Dealer Incentives to Boost U.S. Sales

Ford Motor Co. is offering U.S. dealers special incentives to increase year-end sales.

Escape

The program offers dealers between $100 and $600 for each Fiesta and Focus small cars, Fusion midsize sedans, C-Max small MPVs and Escape compact crossovers, according to Bloomberg News. The news service cites a memo that cautions dealers not to pass along the bonus to customers.

The incentive payments increase as a dealer's sales volume rises. Critics say the plan, which encourages generous trade-in allowances and deep discounting, sacrifices profitability and cheapens the Ford brand.

Bloomberg notes that Ford's small-car sales have plunged since U.S. fuel prices fell below $3 per gallon. Last month the company's domestic sales dropped 2% in a market that expanded 6%, according to Autodata Corp. Ford's small-car sales in October dropped 12% in a segment that expanded 6%.