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Ford extends 0% financing
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October 29, 2001: 5:54 p.m. ET
No. 2 automaker follows GM and Chrysler in extending costly incentive program.
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NEW YORK (CNNmoney) - Ford Motor Co. and Toyota Motor Corp. Monday followed General Motors Corp. and Chrysler Corp. in extending its zero-interest incentive offer on new vehicles.
The incentives have proved popular with car buyers, who have reportedly been flocking to showrooms since their introduction in late September, but they are costly to the automakers.
Ford (F: down $0.45 to $16.21, Research, Estimates) already blamed part of its third-quarter loss on the cost of the incentive program, and warned that its fourth quarter probably won't be profitable in the current incentive environment.
Still, with both GM (GM: down $2.64 to $42.76, Research, Estimates) and the Chrysler unit of DaimlerChrysler AG (DCX: down $0.96 to $36.71, Research, Estimates) announcing their incentive programs would extend beyond their original Oct. 31 expiration date, Ford was left with little choice but to follow. Ford's program now runs through Nov. 20.
Toyota also extended its incentives through Nov. 30, U.S. spokeswoman Diana DeJoseph told CNN. The incentives had been set to expire Wednesday.
Ford said its extension applies to Ford, Lincoln and Mercury brands, but not Ford's other nameplate such as Mazda, Volvo, Jaguar and Land Rover.
"Customer response has been fantastic and has increased our vehicles sales," said a statement from Jim O'Connor, president of the company's Ford Division. "Extending this program is a short-term action that will continue our sales momentum."
Ford initiated some changes in its incentive program. It will not offer zero-interest financing after Oct. 31 on the Escape, the compact sport/utility vehicle which has been a strong seller. And the zero-interest option will only be available for three-years on 2001 car models, rather than being offered for up to five years as was done previously.
But the carmaker will still offer below-market financing on four- and five-year financing for 2001 and 2002 model cars and trucks included in the offer, as well as the zero-interest incentive being available for three-years on most 2001 and 2002 models.
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GM was the first of the Big Three to offer the zero-interest incentive on Sept. 19, and Ford followed the next day, with Chrysler about a week later. On Oct. 17, GM announced an extension of the program into November, with Chrysler following suit last Friday. 
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