Ford Motor Co. (NYSE: F) has increased its U.S. market share from 14.3% to 14.5% over the past two 12-month periods and the company’s vice-president for U.S. marketing, Mark LaNeve, thinks the increase is due in part to Ford’s stair-step incentive program. The offer is good for buyers who qualify and who take delivery of a new vehicle by July 5, 2016.
The program, officially known as the volume growth bonus (VGB), pays escalating bonuses to dealers as sales targets are met. Stair-step programs are intended to achieve one of two goals: to increase market share or to boost sales of key models.
Ford recently introduced a 60-month, 0% financing offer on three of its top-selling models. First-quarter sales of the Edge midsize crossover are up 53% to 35,993 units, compared with the first quarter of 2015. Sales of the Explorer midsize sport utility vehicle (SUV) are up nearly 6% to 55,885 units year over year in the first quarter, and the Escape compact crossover has posted a year-over-year sales gain of 6.4% to 71,594 units.
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Combined, the three models account for 87% of first-quarter sales in the Ford’s utility vehicle segment.
A qualified buyer of a 2016 2.3-liter Ecoboost Ford Explorer can receive 60 months of 0% financing plus a $500 cash bonus or $1,950 cash back. On a 2016 Ford Edge, buyers can choose between the 60-month deal plus $500 cash back or $1,000 cash back plus a $500 Ford Credit Bonus.
A 2016 Ford Escape SE with all-wheel drive is on offer with 0% financing from 72 months plus $500 Ford Credit Bonus Cash or $2,500 cash back plus the $500 bonus cash.
Ford’s LaNeve Told Automotive News that the company will continue spending on its VGB program “as long as we think we’re getting the highest value out of spending that money.” Ford’s first-quarter sales were up 8.1% year over year, more than double the industry rate of 3.3%.
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