Ford Boosts Incentives in May After April Cuts image

After cutting incentives with $300 a vehicle in April, Ford Motor raised them in May to boost domestic sales.

“We pulled back perhaps a little too much in the month of April, which is why we had a bit of a dip,” said Erich Merkle, the company’s sales analyst. “Ford boosted incentives to be in line with the industry, which remains ‘very disciplined’ in its use of discounts.”

Ford is aware that this will be the first year, after three consecutive annual gains, when the company will lose the U.S. market share because it is unable to keep up with the rising demand. In April sales fell 5.1% and its market share was down 15.4% from 16.2% in 2011.

In May ford offered $2,637 a vehicle in incentives, up 7.1% from April and 8.4% from 2011. It is estimated that rival company, General Motors, offers average incentives of $2,973 and Chrysler $3,104. Jim Cain, GM’s spokesman, said that the company is offering smaller incentives compared to Chrysler and Ford.

“GM has been consistently below key domestic and some Asian competitors and that’s certainly going to be the case in May,” Cain said in an interview. “We’ve been very disciplined.”