Automakers Begin to Replace Employee Discounts with New Incentives
DETROIT -- Value pricing is taking the place of employee-pricing discounts and rebates among U.S. automakers. But whether it is a maintainable shift remains to be seen, reported The Associated Press.
DETROIT -- Value pricing is taking the place of employee-pricing discounts and rebates among U.S. automakers. But whether it is a maintainable shift remains to be seen, reported The Associated Press.
Consumers responded favorably to recent promotions due to the no-haggle aspect, industry analysts told AP. Now, automakers are trying to go back to their standard pricing approach, but with prices closer to the actual values of vehicle.
Ford will offer rebates on some of its 2006 models, including $500 on the Focus, Fusion, Five Hundred sedans and the Freestyle wagon, $2,000 on the Explorer SUV and $3,000 on the Expedition SUV.
To compare, the 2006 Explorer is $1,700 less than the 2005 model. Ford’s new program runs through Jan. 3, 2006.
Similarly, the base price of General Motors’ Chevrolet Malibu is $1,835 less than the 2005 model. The company plans to lower the prices on 30 of its 76 models.
According to AP, through Oct. 31, Chrysler is running a promotion with the tag line, "Better Products. Newer Features. Right Price." Chrysler said it will offer $1,500 to $5,000 cash back for most 2005 models and up to $3,500 cash back on some 2006 models, or zero percent financing for three years.
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