Ford Slashing Prices In Search Of Market Share

Ford is about to unveil a new holiday promotion, which will mean price cuts for select vehicles. The question is: What could this program mean for other automakers in the USA?

Ford is slated to begin their “Friends and Neighbors” promotion today. The program, which lasts from November 3 to January 4, will allow consumers to purchase select vehicles for as much as $2,000 off, on top of existing incentives. The promotion applies to most 2014-2016 Ford vehicles. Bloomberg reported certain high-end mustangs; the Ford Raptor pickup truck and commercial grade machines such as the F-550 and F-450 van won’t be included in the discount program.

Speaking of the “Friends and Neighbors” promotion, Jeff Schuster, analyst with LMC automotive told CNBC, “We haven’t seen a program like this in quite some time. It will be interesting to see how others respond to this.”

Reports indicate Ford is undertaking this fourth quarter promotion in order to regain market share lost while it conducted a factory changeover to produce its aluminum-bodied Ford F-150 trucks. Ford market share in the U.S. sits at around 15.1 percent, down from 16 percent back in 2013.

Mark LaNeve, Ford’s vice president of U.S. marketing, sales and service was quoted in a Ford dealer guide which provided a description of the promotion. According to the dealer guide obtained by Bloomberg LaNeve told dealers, “Please use all the resources available to help make this the best sales event yet. We look forward to big sales and a strong close to the year.”

Schuster also told CNBC Ford won’t be the only automaker to introduce a program like this one. Schuster told CNBC, “I suspect GM and Chrysler have programs ready to go. They will wait and see how consumers respond and if this program is a hit, I don’t expect to see GM and FCA stand by and just watch Ford grab market share.”

Will Ford hit their goal? The blue oval automaker wants market share and they are willing to slash prices to get there. Will the Ford sales program cause other automakers to follow suit and introduce their own holiday season price cuts?