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Ford Sales in Light Vehicles Fall

For the last two years, Ford has been increasing its dominance in the light auto sales market in the United States. However, now they are finding that they are falling short of their sales goals, which could mean that the automaker could start offering more discounts in order to get more people wanting to purchase their cars. According to the statistics that were released in the first quarter of sales, in the light auto market the company held 13.6% of the market. This is short around 14% of what they had in mind as their target goal. Why has their sales have not been as good as they had hoped? 

Many of those in the market are pointing to the fact that GM was able to increase their sales in the same market by around 11%. They were offering more incentives than Ford was. In fact, Ford had lowered the number of incentives that they gave consumers by around nine percent, and this was the time in which they saw their sales start to drop. So now, Ford has to figure out just what kind of incentives that they are going to offer and just how much they can afford to offer. After all, they do not want to find that with each vehicle that they produce that they are losing more money than what it costs to make these cars. 

And it is this course of action that has many people a little hesitant to continue. After all, it was those kinds of habits that led to many automakers having to declare bankruptcy when the economy fell. Due to the high incentives that these automakers were offering, they were not able to meet the actual cost of producing vehicles. Thus, they were actually losing more on each vehicle that they were selling than what they were making. It is a slippery slope, though Ford is going to have to tackle this in order to be on top once again.