Pickup Price Wars Are Costing Ford Big

Before you go, we thought you'd like these...
Before you go close icon

The new 2014 Chevy Silverado has touched off an old-fashioned Detroit price war. Photo credit: General Motors.

Price wars can be great for consumers. But they can be hard on automakers.

General Motors  began rolling out its all-new Chevy Silverado this past summer, and reviews -- and sales -- have been strong. Discounts are part of the pickup business, but GM has tried to be stingy, to keep sale prices high and profits strong.

But Ford  wasn't in the mood to play along. Ford jacked up its incentives on the F-150 to almost $5,000 per truck last month. Those fat discounts might hurt Ford's profits, but from a sales perspective, the strategy worked: Ford posted a nice sales gain in September, while GM's sales fell -- and the General had some explaining to do. 

Now, GM is responding with its own discounts. As Fool contributor John Rosevear explains in this video, the stakes are high. How will Ford respond? And how will Ford and GM react when other automakers wade in with discounts of their own?

Retire rich by buying great stocks now
The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "
3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

The article Pickup Price Wars Are Costing Ford Big originally appeared on Fool.com.

Fool contributor John Rosevear owns shares of Ford and General Motors. You can connect with him on Twitter at @jrosevearThe Motley Fool recommends Ford and General Motors and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

People are Reading