Ford to Offer No-Interest Loans on 2006 Vehicles

Ford Motor Co. said it would offer no-interest loans of as long as 72 months to help clear its inventory of 2006 model year cars and trucks as next year’s models begin to arrive.

In a move that could reignite the incentive wars that boosted sales but slashed profits for U.S. automakers last summer, Ford said the interest-free loans would be available on purchases through Sept. 5. The offer will apply to 2006 Ford, Lincoln and Mercury models except the Ford GT sports car and some F-Series commercial pickup trucks.

Ford said last week that it would reduce North American production 21% in the fourth quarter and 11% this quarter to help offset a slump in sales of the large pickups and sport utility vehicles that have been its mainstay for more than a decade.