Ford is criticized for use of stair-step incentives on some Lincoln models

Article by Anita Panait, on September 10, 2013

In a move to support its Lincoln brand, Ford Motor Co. has commenced using a bonus program that dealers say is “confusing” and “unfair.” The dealer-bonus programs -- called stair-step incentives that entail the carmaker paying dealers more as they pass certain sales levels – are now ongoing in New York and Washington, D.C., according to memos distributed to dealers.

The stair-step incentives, which offer up to $1,500 per sale, have received criticism from dealers. The incentive programs could result to steep discounts or generous trade-ins as well as in sales drop-off once they expire. Although Ken Czubay, Ford's vice president of U.S. marketing, sales and service, denies that Ford is not running stair-step programs, sales analyst Erich Merkle remarked that the carmaker is using them selectively for Lincoln.

Don Chalmers, the owner of Ford and Lincoln dealerships near Santa Fe and Albuquerque, New Mexico, told Bloomberg News in a telephone interview that there are “some inherently unfair aspects” of stair-step programs."

He said that the programs are confusing to the market and are “not necessarily good for customer satisfaction.” He remarked that while there is “a burst of sales” at the end of a stair-step program, there also is always a payback – sales drop right after the scheme. Ford’s programs in New York and Washington cover the Lincoln MKS full-size sedan and MKX and MKT utility vehicles.

Topics: ford, lincoln

If you liked the article, share on:

Comments

Recommended

Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 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