Ford To Offer 0% Financing
The auto maker will offer 0% financing through its finance arm and will cover payments for up to 12 months on any new Ford, Lincoln or Mercury vehicle if customers lose their jobs. The offer will run through June 1.
Ford's shares were recently up 3.3% at $2.85 in premarket trading. The stock is up 21% so far this year but has still lost 52% of its value in the last year.
Rival Chrysler LLC began offering 0% financing, along with rebates, employee pricing and discounts up to $6,000 in January as it looked to clear out dealers' inventories and boost sales. So far, the moves haven't seemed to help Chrysler as it struggles to stay afloat.
The Big Three – Ford, Chrysler and General Motors Co. (GM) have been slammed by the recession. Chrysler and GM in particular are faltering, and President Barack Obama's administration said Monday the two auto makers' plans don't show a "credible path to viability."
Ford Vice President of Sales and Marketing Ken Czubay said the company wanted to help rebuild faith in the marketplace as consumers remain anxious about the economy.