Quality Scores Buoy Ford, But Incentives Piling Up On Edge, Lincoln MKZ
Written By: Chris Paukert
June 12th, 2007 1:50 PM

Buoyed by a strong customer satisfaction report card from industry powerhouse J.D. Power & Associates, Ford is looking to get the message across that its products offer class-leading quality. The Ford Mustang, Mercury Milan, and Lincoln’s MKZ and Mark LT notched segment-best scores, and Ford is looking to capitalize with a new raft of print, radio, and television advertisements.
But all is not well with Dearborn’s new product lineup, at least not if cash on the hood is anything to go by. In an interesting tack, Ford recently upped its production plans for their new Edge crossover from 100,000 to 120,000 units. This was to be taken as a good sign, but the Detroit Free Press point out that on average, Ford plunked some $2936 on the hood of Edges in May—all but double the incentives that it launched with. Despite the bump in production volume, the Freep characterizes the Edge as being “slow to gain traction in the market,” so something funky may be afoot here. Similarly, the Lincoln MKZ has marked out a similar path, and it now averages about $3200 worth of incentives per unit (it launched with around $1600).
But there is some good news in all of this—the average Ford carried $2942 in incentives in May, as compared to $3269 year-over-year. Of course, that could also explain why Dearborn’s sales dropped by nearly seven percent last month…
Editor’s Note: In regards to the Edge production versus incentive dollars shell game, we imagine that the thought behind this strategy is that Ford will end up pocketing around the same money per unit in either scenario. That is to say: lower margins per vehicle, but more units sold overall = similar profits overall, with the added bonus of claiming a bigger number of units produced. Of course, there’s still the question of how these heightened incentives will affect the crossover’s resale value…
+ Detroit Free Press: Quality ratings lift spirits at Ford
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