Ford sales chief says customers feel pinch

The credit crisis pummeling Wall Street is going to make an already tough car market that much more challenging, said Jim Farley, head of sales and marketing for Ford Motor Co.

"The credit issue is becoming a big deal for them as consumers," he told reporters during a dinner Monday night. "It will affect our industry."

Many consumers have seen their credit scores fall even though nothing about their finances has changed, Farley said. Leasing is no longer an option for many customers, and they can't access their home equity to help finance auto purchases.

"It's just more pressure on the customer," he said.

Ford is responding by offering more generous loyalty incentives to existing customers, trying to lure them back into showrooms with extra cash. But Farley said the market is proving too difficult for some dealers, many of whom have been under profit pressure in recent years.

Analyst Erich Merkle of Crowe Horwath said the credit crunch is definitely affecting sales in the United States.

"It's going to continue to constrain sales for the foreseeable future," he said. Detroit News