Ford Raises Incentives To Clear Growing Fusion Inventories

by Cameron Aubernon

Published: February 25th, 2014

ford raises incentives to clear growing fusion inventories

As inventories of Ford’s Fusion continue to outpace demand — the result of a second plant brought online last year to keep up with demand for the newly redesigned midsize sedan — the automaker has been raising incentives to move more Fusions out of the lot.

Automotive News reports most dealers around the United States are offering potential Fusion owners zero-percent financing for 60 months plus $1,000 cash back, with discounts up to $3,000 available for trade-ins to those who decline the financing; lessees receive no money due at signing with no payment for the first month of the lease.

The incentives — the most generous offered since the Fusion’s new look debuted in 2012 — come as inventories of the midsize sedan climbed to 97 days as of February 1 — up from 84 days in January — while sales of midsize cars overall have declined from a peak of 200,000 since August of last year, with winter weather holding back more sales.

Though Ford is spending $2,900 in incentives on every Fusion — Toyota’s Camry and Nissan’s Altima both hold higher incentives — the automaker’s chief analyst, Erich Merkle, says the car still commands the highest transaction price in the segment, and is confident inventories will thin as winter gives way to spring:

The midsize sedan segment is the most competitive segment in the industry right now. The good thing is average transaction prices are still very healthy.

#Discounts #Ford #Fusion #Incentives #Inventories #Sales #SupplyAndDemand

Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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Mandalorian on Feb 25, 2014

This has to be the best looking car with the worst powertrains. If Ford really wanted to sell these things they should drop the long paid for 3.7L V6 in, add AWD, Leather, no stupid tech gizmos and sell it for $25k.

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- 28-Cars-Later on Feb 25, 2014
  
  But then the MKZ becomes redundant... wait it already is?
  
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- VCplayer on Feb 25, 2014
  
  I wouldn't mind if they did some sort of sport/SHO version of the vehicle, but the 2.0T seems like more than enough power if you're not trying to race the thing.
  
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- CJinSD on Feb 25, 2014
  
  @VCplayer It isn't the quantity of power, it is the quality. The only engine in the Fusion that isn't hatefully awful is the 2.5, and that engine is over-matched by the obesity resulting from Ford's second rate engineering.
  
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84Cressida on Feb 25, 2014

Camry offers: 0% for 60 months, $500 bonus cash or 1.9% for 72 months, $500 bonus cash. lease: 189/month for 24 months, $2699 due at signing Fusion offers 0% financing for either 36, 48, or 6 months 1.9% for 72 months All financing offers include $1500 bonus cash, plus $500 Ford credit bonus PLUS ANOTHER $1000 competitive lease bonus. lease: $199/month for 24 months, $2539 due at signing. Remind me again how the Camry has more incentives?????

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- Sunridge place on Feb 25, 2014
  
  Camry lease has $2600 in Cap Cost Reduction in there vs $2000 in the Fusion. Camry lease you quoted is based on 12k miles per year....Fusion is based on 10k miles per year....so its not apples to apples. Depending on your residency....Camry is going as high as 0% for 72 months plus $500 bonus cash. http://www.gulfstates.buyatoyota.com/Advanced/Pages/OfferSearch.aspx Mid-size segment is cut throat on rebates. Part of it is to move inventory but the other part is just to stay competitive with everyone else. I know it goes against your Toyota worshiping to acknowledge it...but Camry is certainly up there with everyone else and above others they used to be beneath when it comes to cash on the hood.
  
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- VCplayer on Feb 25, 2014
  
  @sunridge place Yeah, this really seems like Ford bringing their prices more in line with competitors. Hey TTAC, how about an article about current industry practice regarding rebates? Segments like midsize surely have rebates "built in" to the cost of the vehicle, some insight in to how that works would be interesting. Discussing how to compare them to each other would be nice too.
  
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CapVandal on Feb 25, 2014

Off topic, of course, but FYI. Natural Gas is up to roughly $5 /1000 cubic feet this year. The winter is rapidly drawing down supplies. Some of the mothballed projects will be restarted @ that price.

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Dave M. on Feb 25, 2014

"While the Fusion seems like a nice date (rental), better to marry (buy) an Accord." My thoughts exactly. I really love the new Accord....not over styled, quite demure even...yet get sight lines, useful interior, great resale. And awesome 4 cylinder....

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- Shawnski on Feb 26, 2014
  
  TTAC readers,;Jap cars superlative, domestics crap, German cars undependable, the occasional ax grinder and what do you have, a typical banal thread. Might as well read CR, sorry I can't get ethusiastic about appliances. Honda Accord lust...a sad day. Note to domestics and Euro, quite being interesting and simply follow Japan I.e don't innovate because it's just to risky.
  
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