ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, January 10, 1996 TAG: 9601100137
SECTION: BUSINESS PAGE: B-5 EDITION: METRO
DATELINE: DETROIT
SOURCE: Associated Press
Ford Motor Co. tried Tuesday to jump-start sales of its Taurus and other models by offering buyers $600 rebates or low-interest loans on most of its 1996 cars and light trucks.
Some analysts said they expect the move to spread through the industry.
The No. 2 automaker reported last week that its U.S. sales in December were down 9.2 percent from a year earlier. Sales of the Taurus, the nation's best-selling car for four years, were off about 32 percent for the month and more than 27 percent for the new model year.
``A lot of people, we believe, are still waiting for the next shoe to drop with respect to interest rates,'' said Jack Clissold, executive vice president of Ford Credit. He said the rebates and cut-rate loans are expected to stimulate those people to buy.
Most analysts do not blame sluggish fall sales on the Taurus' redesign, although that could cause some reluctance among some potential buyers.
``If design were the only issue, they could probably live with it,'' said Joseph Phillippi of Lehman Brothers. ``I think price is the overwhelming factor.''
The Taurus costs significantly more than comparably equipped competitors such as the Chevrolet Lumina, Phillippi said.
Taurus prices start at $19,390, but most are sold at equipment levels that push their stickers to $21,000 or more.
LENGTH: Short : 36 linesby CNB