Ford Revives Controversial Sales Incentive Plan for 2023 F-150 Trucks

Introduction

After experiencing a 10% decrease in sales of the F-Series trucks, Ford is looking to clear out older models from their showrooms. To achieve this, the company has reintroduced a contentious sales incentive program that dealers had previously thought was discontinued.

Stair-Step Incentives

Ford has implemented what is known in the industry as “stair-step incentives” to boost sales. This strategy involves offering dealers a bonus for each 2023 model year F-150 truck they sell once they reach a specified target. The payout per vehicle increases if the dealership surpasses 120% of its sales goal.

Dealer Dissatisfaction

Dealers have expressed dissatisfaction with this tactic, as it prioritizes numbers over customer satisfaction. The fluctuating incentives can lead to confusion among both dealers and customers regarding pricing transparency.

Dealer Reactions

While some dealers are critical of the stair-step incentives, others see the potential benefits. Nick Anderson, a general manager at Chuck Anderson Ford in Missouri, believes that when implemented correctly, these incentives can be advantageous for both dealers and customers.

Conclusion

The reintroduction of stair-step incentives by Ford has sparked debate within the automotive industry. While some view it as a necessary strategy to boost sales, others are concerned about its impact on customer trust and satisfaction.