Nov. 4--Two years ago at the Los Angeles Auto Show, there were audible chuckles among hundreds of media representatives when Ford Motor Co. Chief Executive Alan Mulally said the automaker was on target to return to consistent profitability by 2009.

On Monday, Mulally was the one smiling, courtesy of a third-quarter financial report showing Ford making a profit of nearly $1 billion.

Almost buried in the avalanche of industry analysis, however, was this: Ford is doing better while offering less-alluring enticements to U.S. new-car buyers.

Santa Monica-based Edmunds.com, the automotive information site, said Tuesday that Ford incentives are lower than those offered by U.S. rivals General Motors and Chrysler.

In fact, Edmunds said Ford went from offering the most lavish incentives to offering the least costly in one year among the nation's Big Three automakers.

According to Edmunds' "True Cost of Incentives" report, the average incentive on a Ford-built car in October last year was $3,886, more than $1,000 above the industry average and higher than GM's $3,668 and Chrysler's $3,695.

In October this year, Edmunds said Ford's average per-vehicle incentive totaled $2,909, only $441 above the industry average and lower than GM's $4,277 and Chrysler's $3,219.

Jessica Caldwell, Edmunds' senior industry analyst, said Ford held the incentives line on a lineup of popular fuel-efficient vehicles -- including regular and hybrid versions of its Fusion passenger car and Escape sport-utility vehicle.

"Ford avoided some of the outrageous incentives that its competitors were offering on less-desirable products," Caldwell said. "That's really been Ford's focus for the entire year -- fewer incentives on its products.

"Also, Ford has more 2010 models and less 2009 products than (U.S. competitors). I know they heavily marketed 2009 products during Cash for Clunkers, so they have less inventory to unload. That helped them."

Other reasons cited by auto industry analysts for Ford's profitable third quarter included a boost from the federal Cash for Clunkers program, upgraded fuel-efficient vehicles in its lineup and general public good will for not going through government-aided bankruptcy protection, as did GM and Chrysler.

Edmunds noted that U.S. automakers continued to offer more incentives than their foreign counterparts.

Edmunds said incentives offered by domestic and foreign automakers totaled $2.04 billion in October. Of that total, America's Big Three spent $1.3 billion. Japanese manufacturers spent $418 million, European automakers spent $215 million, and South Korean manufacturers spent $87 million.

------

Call The Bee's Mark Glover, (916) 321-1184.

To see more of The Sacramento Bee, or to subscribe to the newspaper, go to http://www.sacbee.com/.

Copyright (c) 2009, The Sacramento Bee, Calif.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

<< -- 11/05/2009>>