Question
Ford executives announced that the company would extend its most dramatic consumer incentive program in the company's long historythe Ford Drive America Program. The program
Ford executives announced that the company would extend its most dramatic consumer incentive program in the company's long historythe Ford Drive America Program. The program provides consumers with either cash back or zero percent financing for new Ford vehicles.As the manager of a Ford/Lincoln/Mercury franchise, discuss how you would expect this program to impact your firm's bottom line.
a. Assume Ford's rivals do not respond.What would be the impact on sales and profits for Ford's franchises?
b. Assume Ford's rivals respond.What is their likely response and what would be the likely impact on sales and
profits for Ford's franchises?
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