GM is fighting back with a new round of costly incentives. Up to $4k rebate on 03' Silverados. Could this be a sign that competition is only going to get more intense with the release of the new F-150? BET ON IT. And also bet on a handsome rebate on this new F-150 04' series. THEY HAVE TO. It's that simple.

 

I don't know. When your truck is the #1 selling motor vehicle on the planet, you don't HAVE to do anything. I look for Ford to have no incentives at first...to see just how well they can do with the newest version of the F-150.

 

If they don't have to then why have they been for over a year? I was told that we can expect to see incentives on the new F-150.

 

The truck they've been offering incentives on for over a year has been out since late 1996. This is an all new product that is supposed to be revolutionary in the industry. For them to release it and offer big incentives on it from the start would seem to show lack of confidence in their new product. Personally, I don't look for any worthwhile incentives this year on the '04.

However, I hope you are right. If they do offer incentives that are really nice, I might just buy one myself.

 

It's tough to predict what Ford will do when they launch these trucks, but I suspect we'll see small incentives right away - perhaps $1,000 or so. While the new F150 may be the best truck on the market, the auto industry is under a lot of pressure and people are buying according to their wallets...which is why we have the incentive war going on in the first place. A guy might test-drive the Silverado and the new F150 and think the F150 is definitely a better truck, but in the current economy they might think to themselves "sure, the F150 is better, but is it really $4,000 better?"

If this launch was less important, Ford could just sit around and see how well the trucks sell without incentives - but the F150 is too critical to Ford, and they can't afford to do that. This launch is extremely important to Ford...in fact, I don't think I'd be exaggerating to say that the future of the company rests on it. Ford's profits come from their trucks and SUVs, and the F150 is perhaps the biggest cash cow out there...and if F150 sales slip, Ford will have to start pulling money out of product development, because they can't cut spending on supplied parts much more and the unions won't let them cut their labor costs. I work at an auto supplier, and our president just handed down the order not to pursue any more Ford business - because Ford is squeezing their suppliers so hard that we aren't able to make a profit anymore on Ford jobs. I know of at least one other supplier that has done the same, and there isn't much more money Ford can get out of suppliers unless they start going to Korea or China for supplied components (not that they aren't already). Anyway, if Ford has to pull money out of product development that'll put their future profits at risk.

Right now the "Big 3" are having an incentive war, which puts Ford in a lose/lose situation - they can't afford to give up sales (their union contracts don't allow them to close plants), and their price structure means that they are less profitable (the incentives hurt Ford much worse than they hurt GM). Their two main hopes right now is that the economy picks up soon, and that the F150 is a good enough seller that they maintain or increase sales while reducing their incentives (to perhaps half the current levels).

As I mentioned, I would expect to see small incentives either at launch or very soon after - and as sales results come in, they'll probably adjust those incentives accordingly. I suspect (and it's only a guess) that they'll come out with about $1,000 in incentives, and then the level will gradually be increased until it levels off at perhaps $1,000 less than whatever GM is offering at the time. In a way, GM has Ford backed into a corner - and the only way Ford can get out of it is through good engineering & design, because they can't get out of it by competing on price.

LK

 

ok guys lemme give my 2 cents...i drive an 00 f150 reg cab slammed with harley rims, screens and a system. i love my truck. it just so happens i sell new chevys...... the rebates are great and everything.... but if you want to know how to really buy a car..... pay invoice.......here at chevy we have "holdback"..holdback it the cushion of commission the dealership gets. iit means even if you buy a truck for invoice (the number the dealership supposably owns the truck for) the dealership still makes at least a grand. what the smart thing to do is buy your vehicle for invoice... the dealer still makes a little.... and then use your rebate.. that will put you at 3-4 grand under invoice.most regular salesmen will be hesitant to do this for you, as they know from the get go they wont be making more than 150-250 bucks so they might give you crappy service.if you were to pay sticker they make 800 to 1000 on you... the salesmans comission is 20-27 percent of the dealerships gross profit, the best way to buy a car these days iis online... they will email you a list of cars that fit your specs and will usually provide the invoice over email...i know the internet managers here sell like 25 cars a month a peice, but they give away all 25...where as i sell 10-15 but i make at least 500 a piece,anyways just my 2 cents

 

one more thing those rebates get paid back to the dealer by gm so dont let them fool you intol thinking you cant get it under invoice