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Ford Raises Prices, Cuts Incentives As Semiconductor Chip Shortage Continues

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The semiconductor chip shortage has impacted every automaker in some way, but so far, Ford has cut more vehicles from its North American production schedule than any other automaker. Thus, FoMoCo has been forced to make some difficult decisions in recent months, focusing on using the chips it has to produce new and profitable products, while other models suffer. And now, just a few days after raising incentives on new, out-of-stock-vehicle orders, Ford is raising prices on nearly all of its models and cutting incentives on existing inventory.

Ford’s price increases affect a total of 11 models, according to a dealer letter seen by CarsDirect. Those models include the Ford EcoSport ($400 price increase on all trims), Ford Escape ($670 price increase on S trim), Ford Bronco Sport ($540 on Outer Banks and Badlands trims), Ford Edge ($500 on all trims), Ford Mustang Mach 1 ($680), Ford Explorer ($250 on all trims), Ford Expedition ($600 on all trims), Ford Ranger ($250 on all trims), Ford Super Duty ($250 on all trims), Ford Transit ($250 on all trims), and the 2022 Ford Transit Connect ($250 on all trims).

According to the same report, most Lincoln models are receiving a price increase as well, with the largest coming from the 2022 Lincoln Aviator Reserve, which is getting a $905 price jump.

At the same time this letter went out, Ford also sent another letter informing dealers that it is eliminating nearly every rebate it currently offers effective now, according to CarsDirect. The automaker said that the change is designed to simplify incentive programs based on dealer feedback.

“Retail Customer Cash, Retail Bonus Cash, FMCC Bonus Cash, Select Inventory (SIP) Cash, all Series/Trim/Package incentive level variations, and the myriad of APR offerings on most 21MY vehicles lines will be eliminated,” Ford said in the letter, replaced with a “more consistent, simplified incentive structure.”

Ford’s new program is centered mainly around a trade-in assistance incentive, which offers additional incentives on qualified trade-ins towards 2021 Ford F-150, Ranger, Mustang, Expedition, Edge, Explorer, Bronco Sport, Escape, and EcoSport models.

We’ll have more on Ford’s pricing and incentive plans soon, so be sure and subscribe to Ford Authority for non-stop Ford news coverage.

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Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. GreggT

    “Retail Customer Cash, Retail Bonus Cash, FMCC Bonus Cash, Select Inventory (SIP) Cash, all Series/Trim/Package incentive level variations, and the myriad of APR offerings on most 21MY vehicles lines will be eliminated,” Ford said in the letter, replaced with a “more consistent, simplified incentive structure.”

    In other words, one that will enhance our bottom line……

    Reply
  2. Central Jersey

    As a Ford Shareholder I want what is best for the bottom line.

    As a driver I want the lowest possible price.( share holders are x-plan eligible so this won’t be so bad )

    Reply
  3. Bob

    Ford = Idiots!

    Reply
  4. CE

    The prices were already too high for some of us regular folk, but guess it makes sense to try to make a profit on what they have to sale, as there is no profit when there is nothing to sale. The incentive thing is weird, except for models that just don’t sale at all. I’ve been getting incentive emails the last 3-4 months & couldn’t figure since the demand outstrips available vehicles from everything we’ve seen.

    Reply
  5. John Van Woudenberg

    So I ordered a King ranch back in early February and was promised a 3-year loan at 2.9% is that now not going to be available because if that’s the case I’m canceling. I have a signed contract for a trade in price and a truck price if they move either one I’ll go look at a 22 tundra

    Reply
    1. Ken D

      I’m kinda in the same boat, I wish they would announce the Tundra, if its a hybrid with something like the Ford Propower and priced similarly,….. FYI, I have financing arranged with PenFed for 1.99% for 60 months, may want to check out.

      Reply
  6. Arcee

    So…no incentives and price increases. Wow, that is some fabulous business plan. Sure, inventory is tight and demand is high. But price gouging is not cool. A new Bronco Sport was at the top of my list, but if this is the direction Ford is going I will look elsewhere.

    Reply
    1. Lou

      Looks like Jim has come up with a way to get rid of inventory even for used cars. God bless his greedy little heart.

      Reply
  7. James Clawson

    Now, they have a plan! So did the White Star Lines, but the plan did not include enough life boats!

    A failure to plan is a plan to fail!

    Ford is apparenly, rappidly heading towward bankruptcy on stockholders money!

    I ordered a new 2021 F150 but was told it would no be ready until they start taking orders for the 2022 model year. So the new car I ordered will be a year old before it is delivered! Does this make sense to anyone? I
    I suspect the passengers on the Titanic would have rather bought a ticket on a life boat!

    Reply
  8. Ken D

    I put a deposit on one over a month ago that the dealer had on order. Was supposed to arrive in 2-4 weeks and had $1500 in incentives. Soon after notified me it would be a couple or 3 months out and any incentives would be what they offer at the time of sale, not order. I’ll probably still get as they’re just so hard to find, but I’ve not owned a Ford in 20 years and been a die hard Honda/Toyota fanboy, but the hybrid with Propower is what I want for camping so I’m without options, but its doesn’t build relationships.

    Reply
    1. GreggT

      Maybe putting a deposit on one that the dealer had on order was a mistake. I picked mine up yesterday I ordered 2/15 and all the incentives in place at the time were applied.

      Reply
      1. Ken D

        I would have never gotten one if I hadn’t have done that. I’m lucky actually, the dealer had it like $7,000 discounted at the time and are going to honor it. Dealers are wanting over MSRP now, so I guess I shouldn’t complain, plus I got pretty much dead on what I wanted.

        Reply
  9. Red Devil

    Chip shortage ?? Just give me the the good old variable venturi carb with points and condenser, no computer and cut the damn MSRP price in half. My old ’79 Ford LTD with the big V-8 with points, condenser and variable venturi carb got me 27 mpg on a trip when properly tuned.

    Reply
  10. JOHN MAJDALANI

    The question is, do retail/fleet buyers have the will to ride out the computer chip shortage?

    Reply
    1. Ken D

      Its not just Ford, the local Chevy and Ram dealerships are thread bare as well

      Reply
  11. William A Most

    Almost 7 months since we ordered an F-250 Heavy Duty Pickup and about 20 changed delivery dates. They say it’s built and they are waiting on shipping instead of truthfully saying they are waiting on microchips. Now you would think Ford and all the other American manufacturers would wake up and invest in their own chip making plant so they wouldn’t be so dependent on foreign manufacturers. I’m curious though, are the foreign manufacturers that are making the chips waiting till they produce all the chips made for all the car companies at once before they start shipping any chips to any of the car companies at all? I would think they would produce so many then distribute them fairly to all car manufactures as soon as they had a few thousand made but we aren’t seeing any new vehicles arriving at any of our dealerships at all. SEAMS FISHY TO ME!

    Reply

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