NEW YORK (CNN/Money) - Ford is holding the line on pricing of its 2003 Expedition, one of its full-size sport/utility vehicles that is a key to its return to profitability, despite including some expensive new features in the vehicle.

The company hopes that by holding the line on prices it can start to reduce the costs of incentives that helped plunge the company into the red in the fourth quarter. But Ford Chief Financial Officer Martin Inglis conceded at an investors' conference Monday that incentive costs are still higher than its earlier guidance.

The high cost of incentive and downward pressure on pricing were a major reason behind Ford's $5.1 billion loss in the fourth quarter that resulted in its first annual loss in nine years. While the company has said it believes a restructuring plan announced in January is on track to return it to profitability, analysts surveyed by earnings tracker First Call are projecting a loss of 14 cents a share in the first quarter, compared with income of 60 cents a share a year earlier.

Ford will price the Expedition between $31,295 for the base model, unchanged from last year, to $41,935 for its Eddie Bauer model, up $110. The new vehicles will include features such as a second and third row of seats that fold flat into the floor as well as independent rear suspension, which is a first in the full-size SUV category.

Ford is limiting price increases on its 2003 Expedition despite new features.

The price announcement and update on incentive costs apparently concerned investors, as shares of Ford (F: Research, Estimates) lost 62 cents to $16.05 Monday.

Ford had seen increasing competition the full-size SUV segment not only from overseas automakers but from General Motors Corp. (GM: Research, Estimates), which has seen gains in the segment lift it above sales forecasts.

The competition has continue to put pressure on pricing as well as keep the demand for incentives in place. Ford has been offering $2,500 cash back on the Expedition as well as reduced interest rate financing that includes zero interest for three-year loan packages.

Ford had seen marketing costs, including incentives, rise to 16.7 percent of revenue in the fourth quarter as it followed GM in offering broader zero-interest financing to maintain demand for auto sales in the wake of the Sept. 11 terrorist attack.

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"Although marketing costs have declined slightly, they are still running higher than anticipated than was in our base budget, and they're certainly higher than I'd like them to be," he said. While he said that incentive costs are 26 percent lower in the first quarter than they were in the fourth quarter, a new push in advertising to restore confidence in the Ford brand is keeping overall marketing costs high.

Inglis said Ford has at least started to set its own direction on incentives instead of following competitors such as GM.

"We're really focusing now on getting a more disciplined approach," he said. "We had been a little reactive to GM, and we're now back on our own path deciding what we want to do with incentives."

Inglis did not give any specific guidance on earnings, although he said the company's restructuring plan announced in January is on track and that other near-term cost savings and employee head count reduction targets should be met.