DETROIT -- Ford Motor Co. said on Wednesday it has raised cash incentives on some slow-selling vehicles, including mid-size and large sport-utility vehicles, to reduce swollen inventories.
The new rebates from Ford, which range from $500 to $1,000, cover its Explorer and Expedition SUVs, Ranger pickup truck and Focus sedan, the automaker said.
Ford is also offering interest-free financing for terms of up to 60 months on the two SUVs, spokesman Dave Reuter said.
The second-largest U.S. automaker, which later on Wednesday is expected to report a drop in U.S. sales for May for the 12th straight month, has said rising gasoline prices have hurt sales of its profit-making SUVs.
Ford increased incentives to reduce inventories of unsold vehicles and to remain competitive in the market, Reuter said.
The automaker raised discounts on Expedition by $1,000 to a total of $5,000, while the rebates on the four-door Explorer were raised by $500 to a total of $3,500.
The discounts on Focus sedan and Ranger were also increased by $500 to a total of $2,500 and $2,000 respectively.