Ford Will Cap Sales Incentives on Cars Sold in U.S.

Ford Motor Co. CEO Mark Fields tells Automotive News the company will limit sales incentives for its cars in the U.S. because “you can only go so far” to entice customers to buy them.

Cars account for only 28% of Ford’s domestic sales so far this year, down from 37% a decade ago. Demand for large cars has collapsed from 16% to 2% over the same period. At the same time, sales of more profitable SUVs and crossover have jumped to 32% from 22%.

Ford confirmed last month it will phase out small-car production in the U.S. by 2018. That’s when it will relocate assembly of its Focus small sedans and C-Max small multipurpose vehicles from its Michigan Assembly plant in suburban Detroit to Mexico.

Ford reportedly will retool the Michigan facility to make midsize pickup trucks and Bronco SUVs. Ironically, the plant had been retooled from big SUVs to small cars nearly a decade ago, when high fuel prices triggered high demand for fuel-efficient vehicles.

But Fields emphasizes to AN that Ford won’t abandon the North American car market because “you never know where consumer demand is going to go.” He vows to keep the company’s lineup of cars in the U.S. “very fresh,” even though demand for them at the moment is at an all-time low.