Ford plans lower spiffs in 2nd half

DETROIT — Ford Motor Co. is planning lower incentive spending on U.S. nameplates in the second half of 2008.

The average per-vehicle spending is likely to drop in part because of new-model launches this summer and fall, top executives say. Ford also expects the economy to strengthen in the second half of the year.

"We really feel good about those new products we have coming — that the new, fresher product will have less incentives," CFO Don Leclair said in an interview. "So on average there will be less incentives because we've got more of the newer products in the second half."

The 2009 Ford Flex, a seven-passenger crossover, and the 2009 Lincoln MKS, a sedan dubbed Lincoln's flagship, are slated to go on sale this summer.

This fall, Ford also will introduce the re-engineered and restyled 2009 F-150. Until the updated pickup goes on sale, Ford likely will need higher incentives in that segment to stay competitive and clear out old models.

If the economy improves in the second half, demand is likely to strengthen and keep overall industry incentive spending in line, Leclair said.

But the industry's first-half prospects are hard to predict, CEO Alan Mulally said.

"Everybody is making a different assessment about what the real volume is going to be in the economy," Mulally said.

Above all, he said, Ford will continue to balance its incentives and production "with respect to the real demand and the competition and the competitiveness of your product."