Ford doesn’t hit retail goal this year, insists pricing strategy will remain

Article by Christian A., on April 15, 2011

Ford Motor Co. faces pressure to offer bigger discounts as it failed to attain its retail goal this year. It had been able to raise its share of the light-vehicle market in the U.S. in the past couple of years.

Researcher Edmunds.com said that in the first three months of 2011, it had 13.6% of the U.S. retail auto market (excluding sales to fleet buyers). Ford’s filings indicated that it didn’t reach the 14.1% target that was set by Ford's board.

Autodata Corp. said that Ford's share fell as General Motors Co. increased sales incentives by 11% in the first quarter. Autodata said that Ford’s total U.S. market share dropped to 16.2% from 16.8% the previous year.

Ford had cut discounts by 9.1% in the first quarter. In a research note on April 12, Joseph Amaturo, a Buckingham Research Group analyst, said that Ford's management may have to “be more aggressive with incentives” to stop the further loss of market share.

Amaturo, who has given Ford a “neutral" rating, said that “net-price erosion" is a serious concern. CEO Alan Mulally, who is focusing on profits over market share, said that how Ford prices its products will be unchanged.

On April 13 in Detroit, Mulally said that Ford’s plan puts a lot of importance on profitable growth and that what they aim for is for production capacity to match the real demand.

Topics: ford, price

If you liked the article, share on:

Comments

Recommended

As it turned out, we’ll be seeing Toyota’s new super supermini at the 2017 Geneva Motor Show in March. It’s time we all get to meet the new Toyota Yaris...
by - February 23, 2017
Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Fireball Performance Cars has been known to make the fastest sixth generation LT1 Camaros in the world. Once again it has managed to walk the talk as it hit a...
by - February 22, 2017
The North American unit of German premium carmaker BMW is recalling around 19,000 units of its BMW i3 electric vehicle because of the risk of fuel leak. You may ask,...
by - February 22, 2017
A publication by the U.S. Patent and Trademark Office revealed that Honda is still looking into the Project 2&4 Concept. Officially unveiled during the 2015 Frankfurt Motor Show, the Project...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries