Shark number one is Ford, which is making a concerted effort to steal sales from its cross-town rival. Automotive News [sub] reports that Ford is rolling out a regional incentive program aimed at existing Chrysler owners. Ford is offering Chrysler owners an additional $500-$1,000 on the purchase of a new Ford to owners of Chrysler vehicles older than the 2006 model year who have had service work done at Ford dealerships in the past three years. However, Ford is keeping the program as targeted and low-profile as possible. “We’ve been very cautious and certainly not predatory with regard to this,” say Ford spokesfolks. Which is smart. Domestic buyers seem to prefer other domestics, and Ford can only benefit from the uncertainty surrounding the other Detroit firms. Still, Ford should probably consider sending Chrysler owners an update on ChryCo’s attempt to welsh on its legal liability. Meanwhile, Automotive News [sub] reports that Ford is increasing production, as it angles for Chrysler’s declining market share. Toyota is, too, says AN [sub]. Let the feeding frenzy begin!
Zombies make great chum… Chomp, Chomp, Chomp!
I bet this became an amended part of Mulally’s turnaround plan: Wait for GM and Chrysler to fail, then feed off the remains.
However, back in 2006 I bet nobody would have predicted that Ford would be the last man standing, who would be feeding off the dead zombie caucuses of the other two.
so if I’m interested in a ford vehicle and have a chrysler vehicle but HAVEN’T had service done, can I then have service done (replace windshield wipers) and then take the $1k discount?
Clever move by Ford…only target customers their dealers already have a relationship…
Ford should extend this deal to its existing customers that have a competitive brand car elsewhere in their household…one of Ford’s big gripes a few years ago was where households with a Ford F-150 also had a CamCord passenger car.
I own a 2001 Dodge Dakota that I purchased from our now-former Dodge-Jeep-Chrysler dealer (killed off by GMAC last December). The local minority-owned Ford dealer closed in March. We have no new car dealers here in my community for the first time in 60 years. I would not in a million years buy a Ford product, I don’t care how many coupons they send me. Secondly, since Ford crapped on my community as GM/GMAC and Chrysler did, why should I reward any of them with more business? Since I now have to travel one hour to buy any car, I am going to buy a Toyota next time I make a purchase. GM has taken my loyalty for granted and I’m done with them. I guess the D2.8 don’t want my business anymore.
Great news. It’s about time Ford went after the Govt2 – Ford has done the painful deeds that the others wouldn’t, and what’s their reward – their govt not only bails them out but is moving to making them even stronger. Wrong!
I thought Ford should have done this back in January … but maybe by waiting until Chrysler and GM are actually in bankruptcy they’re being cleverer than I thought.
Why would someone service a Chrysler at a Ford dealer?
The bailout of GM and Chrysler is so unfair for Ford. How would you feel if you mortgaged you house and everything you own to keep your business afloat and then when your competition collapses, the government gives them money. I have a small business and if the government bailed out my competition along the lines of GM and Chrysler, I would be really upset. By the way, quite a bit of my competition has gone under since the recession has started and because of it I am doing quite well now thank you. How do you compete with people who have access to free, limitless capital? If the President of the US got up on TV and said that he was going to support my bankrupt competition, I would close my doors in spite the following day.
What mtypex said, +1. Why in the world?
npbheights
Not only is this, in my understanding, unfair towards Ford or any other competitor, its just a continuance of the whole mortgage bailout mess.
I am assuming that the idiots that purchased homes beyond their means or with the plan to flip over and over to make money on the whole imaginary housing game got aid while the rest of us watched our loans and borrowing.
This last year has seemed a whirlwind and flurry none of us can really get our arms around.
I feel like I have all-timers while trying to play Scrabble, the Spanish edition!
The history channel has a show called “Life after people. They should have another show called “Life for a dealer after Chrysler” or simply life after Chrysler. They could visit deserted Chrysler dealership and see how it has affected the surrounding community.
“500 days after Chrysler died this dealership now has 3 foot high weeds sprouting from the pavement. A 2007 Sebring is now home to a pack of feral cats. What was once a thriving repair garage is now home for thousands of cockroaches”
3000 days after Chrysler the dealership is a mall. Some say at night before the mall closes the sounds of ghostly car horns can be heard.”
Not to be the PC police, but I would prefer if we didn’t use terms like “Welsh” as they give the impression that our friends from Wales keep their word as reliably as Chrysler.
Ford is proving to be not as dumb as GM and Chrysler. Whether it proves to be smart remains to be seen.
@mtypex
Why would someone service a Chrysler at a Ford dealer?
$19.95 oil change special.
“Why would someone service a Chrysler at a Ford dealer?”
My admin has her Chrysler Van serviced at a Ford dealer. Her brother is the lead mechanic there, so that doesn’t hurt.
Ford should by some GM debt and have a little fun… Ford must have a few lawyers hanging around that could make things fun for Obama.
In my father’s little town the CJD dealer closed up with zero notice about 18 months ago. Sheriff showed up with a bunch of haulers on behalf of the floor-plan lender and took away all the inventory. The dealer laid everyone off that day.
The only other new car dealer for 20 miles in any direction was the local (unaffiliated with the CJD) Ford dealer, which promptly hired a bunch of the Chrysler techs, put up a sign announcing that they could work on CJD’s and started pulling all kinds of service work that would have gone to the CJD dealer.
I don’t know if this is a common story, but I can’t believe that it is unique.
As it should. Capitalism is alive and well. Great news.
Dave:
Ford has done the painful deeds that the others wouldn’t, and what’s their reward”
Well let’s see. They borrowed a bunch of money before the credit markets collapsed. How hard is that? And they borrowed so much that they put themselves at risk – unless they plan to use Uncle Sam’o(bama) as a safety valve. They have not closed dealers (just normal attrition which everyone was doing before BR). They haven’t told the Unions to FO and die. In short they haven’t done any of the things the B&B here have recommended.
“Ford is offering Chrysler owners an additional $500-$1,000 on the purchase of a new Ford”
See response above. How can Ford afford to do this? they are not making a profit. They have to pay interest on that money to their lenders – unless we (taxpayers) turn into their lenders.
See response above. How can Ford afford to do this? they are not making a profit. They have to pay interest on that money to their lenders – unless we (taxpayers) turn into their lenders.
Sadly, since the government is basically giving free money to both Chrysler and GM to compete with Ford, this may come true. But what is worse, Ford giving rebates using borrowed money it may be able to pay back, or Chrysler giving money from our tax dollars that will never be payed back?
I said it before and I’ll say it again. If I ran Ford, I would make the biggest stink/advertising campaign ever about the government financed competition. I would let people know that we’re trying to succed without using tax money. The fact that Ford has been rolling over this whole time is very troubling.
It shouldn’t be “welsh” on a deal. It should be “Welch” as in Jack Welch, former GE CEO who didn’t hire Nardelli to replace him. Nardelli thought it was a done deal, so he went away, wound up a Home Depot and the Chrysler.
Hence, “Welch” on a deal.
Well, not really, but close enough for me, and it keeps the vowels in Wales where they are most needed.