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Winding Road

Quality Scores Buoy Ford, But Incentives Piling Up On Edge, Lincoln MKZ

Written By: Chris Paukert

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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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11 Comments

Johnny Rocket June 12th, 2007 3:12 PM Link

You can say the Edge has looks at least, but the MKX is just plain ugly. All across the board, reviews have questioned the rationale behind buying the Lincoln, as the features and materials are only marginally better than the Ford.

AC June 12th, 2007 3:23 PM Link

The problem with the Edge is that it isn’t of any real value to the consumer. The Edge is heavy at 4,100 lbs., expensive at a starting price of $25,000, and a gas guzzler. Real-world, the Edge will cost you a minimum of $27,000 out-the-door and will offer you (if all the magazines and websites are correct) around 15 mpg with a 3.5 L V-6. That is barely above the mileage of Ford’s V-8 Explorer. The Mazda CX-7 is lighter, more nimble, and cheaper. The Lincoln is just a tragedy in every way.

Don June 12th, 2007 4:09 PM Link

Weren’t these things supposed to save us from big, bad, gas guzzling SUV’s?

Guess not.

Don June 12th, 2007 4:10 PM Link

(if all the magazines and websites are correct) around 15 mpg with a 3.5 L V-6. That is barely above the mileage of Ford’s V-8 Explorer.

You’re right, AC: why bother with this heavy beast when you can get yourself a nice Explorer with a V8 that gets the same mileage or better?

Mena June 12th, 2007 5:11 PM Link

Both Ford and GM have a ways to go before they understand what consumers want in their cars. Where are they getting their market research from anyways?

AC June 12th, 2007 6:56 PM Link

Consumer Reports has reported similar complaints about the Saturn Outlook and GMC Acadia. Both of GM’s CUVs are heavy and pricey. The Acadia will run you in the neighborhood of $30K. MotorWeek Television, on the otherhand, did record an overall mileage estimate of 22 mpg. MotorWeek has a favorable number for the Edge at 20 mpg overall. It all depends on driving habits.

The Stig June 12th, 2007 8:52 PM Link

Half the problem is they botched the launch and couldn’t get product to a lot of dealers in a timely fashion before inital interest cooled off. Now fewer yet are interested due to gas price issues. Plus, just to echo previous comments, it’s overpriced and underpowered. With $3000 in incentives, resale will be dismal.

Aaron June 13th, 2007 1:12 PM Link

Wow I don’t know how the pricing is in the US but I can get an edge SEL AWD for around the same price as a loaded CR-V or RAV4, and by the time you option it out a cx7 is as much.

I’d buy the edge over all of them - not to mention over a 50+k v8 explorer. In terms of mileage, 2 folks I know with the edge both report that it gets good mileage, not sure on the specifics.

I Heart Bashers June 24th, 2007 7:43 PM Link

will the $4000 dealer incentives that Toyota is giving out for the Tundra going to hurt it’s very mediocre Tundra too Stig?

Winding Road » Archive » Dogged By Poor Reviews, Ford’s Edge Prospers Regardless June 29th, 2007 10:18 AM Link

[…] Originally tipped to sell 100,000 units, Edge projections have been bumped to 120,000 (although the Blue Oval has been piling cash on the hood even as sales climb –Ed). Howes points out that last month, the Edge outsold the Honda Pilot, Toyota Highlander, Nissan Murano, and even General Motors’ larger Lamda-based GMC Acadia and Saturn Outlook. Of course, some of those sales could be from potential Explorer customers… […]

bmwloco July 1st, 2007 4:51 PM Link

Ford is moving across from the VW dealership where I work.

I can’t wait. Bring ‘em on. ;)

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