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.