Ford, Mercury Adjust $60 More From Stickers

The Ford Motor Co. is set to cut $60 more from its sticker prices on its current auto lineup. This will be done while enhancing standard options on vehicles. Ford and Mercury vehicles’ stickers will be adjusted to attract more customers and at the same time curb incentive spending.

According to Ford, “Being competitive in today's marketplace requires competitive content and competitive pricing. We believe we have an outstanding plan to stabilize and regain sales and market share." The automaker along with General Motors and Chrysler Group, are dependent upon sales incentives like employee pricing promotions, cash rebates, and interest-free loans to further the promotion of the vehicles.
One of the primary reasons behind the adjustment of sticker prices is that when consumers shop on the Internet, they might not be aware of all the sales incentive programs. This could make the American models seem less competitive than they really are.
Ford will also be selling Ford Edge and Lincoln MKX without cash rebates. According to Cisco Codina, group vice president of North American marketing, sales and service, “But it will be low enough to attract retail customers without added cash on the hood.” He added, "Our intent is to have good leases and good pricing. We don't plan to have any visible cash on those vehicles."

The 2007 Ford Edge is powered by all-new 265-horsepower 3.5-liter V6 mated to a 6-speed automatic transmission. The vehicle features an intelligent all-wheel-drive system with MacPherson struts in the front and a four-link independent rear suspension to boost handling and drive feel. The interior features a center console that can hold a laptop computer. The vehicle also boasts of its panoramic Vista Roof, a segment-first MP3 audio jack and six-way power-heated adjustable front seats. The Lincoln MKX crossover, on the other hand, is built more like a car than a truck. However, it offers more space for cargoes as well as higher seating position of SUV. The crossover shares its basic structure with its siblings – the Ford Edge and the Lincoln MKZ. It is built at Ford's Oakville Assembly plant in Ontario, Canada.

Through the announcement of the vehicles’ prices was held in abeyance, it is expected that the Ford Edge will carry a base in the mid-$20,000 range while the Lincoln vehicle in the mid-$30,000 range.

In connection with Mercury lineup, the 2007 Milan will carry a base in the mid-$20,000 range and the 2007 Mariner will be priced a bit higher. The Mercury Milan, midsize sedan built on the Ford CD3 platform, is deemed the upscale version of the Ford Fusion. It is equipped with LED taillights, front and rear fascia designs and refined interior. The Mariner, conversely, uses upgraded Mercury car parts to enhance its appearance and performance. The vehicle can be likened to the Ford Escape however it is also equipped with stylistic differences like the monotone cladding, European-style turn signal repeaters, two-tone interior and the exclusive waterfall front grille.

The strategy of Ford to price its lineup closer to expected transaction prices is aimed at reducing heavy incentives that minimize resale values. Nonetheless, cash rebates can't always be avoided. As a fact, the 2006 Ford Fusion sedan was introduced carrying a $1,000 cash incentive. Codina added the automaker expects to sell 120,000 units of the Edge annually. He did not give a volume projection for the MKX.

“The Edge can achieve that level of sales in part by hanging on to consumers leaving SUVs. They often are looking at crossovers, and the Edge can help keep buyers who once drove Ford Explorers in Ford showrooms,” Codina noted. "We have a huge owner base as it relates to mid-sized SUVs, and the migration is from that to this. So that's also encouraging for us."