DEARBORN, Mich., March 31, 2009
Ford, GM Offer Plan For Jobless Consumers
Flagging Auto Giants Look To Prop Up Sales By Giving Protection To Customers Who Lose Work
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Ford said it will cover payments of up to $700 each month for up to a year on any new Ford, Lincoln or Mercury vehicle if consumers lose their jobs. The program runs until June 1. (AP Photo/David Zalubowski)
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Interactive Motor Away Things to know before hitting the road.
The offers come as auto sales have been battered by the recession and tight credit, reaching their lowest levels in 27 years.
Ford said Tuesday it will cover payments of up to $700 each month for up to a year on any new Ford, Lincoln or Mercury vehicle if consumers lose their jobs. The program runs until June 1.
Hours later, GM said it will make a similar offer. GM's new CEO, Fritz Henderson, said the company's "Total Confidence" program will make up to nine car payments of $500 each for customers who have lost their jobs through no fault of their own.
Customers must qualify for state unemployment to be eligible for the program. The program starts April 1 and runs until April 30.
Hyundai Motor Co. launched a program in January that allows buyers to return a vehicle within a year if they can't make the payments due to a job loss or disability. The company said the program helped it avoid a double-digit sales decline last month, reporting a 2 percent slide.
Dearborn, Mich.-based Ford is also offering zero percent financing on certain Ford, Lincoln and Mercury vehicles.
"Consumers remain anxious about the economy and their own outlook for the future," Ken Czubay, vice president of sales and marketing, said in a statement.
The announcements come a day after President Barack Obama said the government will back new car warranties issued by GM and Chrysler LLC, who have accepted federal assistance and are seeking more, to help boost consumer confidence about buying their vehicles.
Ford has not requested federal bailout funds.
Ford also said it would partner with its dealers to introduce a program that would help local charities affected by the economic downturn.
Ford's shares rose 13 cents to $1.83 in morning trading Tuesday. GM shares were down 32 cents to 2.38.
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- One way to preserve a standard of living in a low wage world is higher value added. We missed our opportunity to automate in the 70s due to high interest rates caused by printing money for Viet Nam. If we have invested in automation, we would have had jobs designing, producing and programming the machinery that could produce much more than any low wage country.
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- Hey vivaviva44, don' sweat it. Those talking heads will say anything if they think it will boost their ratings. I doubt if any of them has had a thought since kindergarten. Maddow, Hannity, Limbaugh, Olbermann. A social disease would be a blessing by comparison. Please don't think all round eyes are born nasty.
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- Hey tincup. Your wisdom underwhelms me. Lets look at your comments. Durability: Do you really think you will get list price if you sell your brand new HD TV? Durability. Cars last much longer than they used to, I remember when a 30,000 mile valve job was standard even on a Rolls. And the spark plugs that maybe you replace at 75.000 to a 100,000 miles? They used to be good for 20,000 miles highway. How about plastic? It's lighter than steel and contributes to fuel economy. All the new ideas? Many of them rightly government mandated for fuel economy and for crash survivability. Oil companies? They provide the raw material for the plastics you use in your daily life, from your computer to clothing. Electricity? Where do you think the energy comes from to produce it? A very large per cent comes from those oil companies in the form of natural gas or oil. As I said, your depth of knowledge is astounding.
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- THe money in the hands of the corporations and unions.Overpriced management.The government has pension plans and great wages ...So whats good for the government is'nt good for the private sector.Average shmoe is the fallguy on this one .Hyprocrites.
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- cars for the jobless, this worked so well with the "mortgages for the jobless". why does this country insist on rewarding failure? first welfare, then affirmitive action then jobless getting mortgages they can't pay now this. amazing.
Posted by jwind1 at 9:17 AM : Mar 31, 2009
Who is the failure? The financial market is forced to look to subprime and in this case the jobless for future revenue.
Have you asked yourself how it is the Canada can have 64 percent home ownership minus the foreclosure mess of America. Where we have 64 percent home ownership with many in foreclosure. This is a failure of a economic system, doofus, not some GOP fantasy that those who fall down deserve to be face down in the gutter. - Reply to this comment
- How about if the auto industry would offer a car that was worth what they get for it. New cars lose several thousand dollars just driving them off the lot,,,,,,,,,,,,they don't last as long as cars of the past decades,,,,too much plastic,,,,,,,,,And ALL their new ideas....you HAVE to take to a dealer for repair,,,years after you bought them,,,,,,,and any repairs....cost thousands,,,,,,,,,,,,,,,,,,,Why don't they get the oil companies to bail out the auto makers anyway........they ended up with everyone's money in just four months of 4 dollar a gallon gas last year,,,,,,,,,,,,besides the auto makers and the oil companies have business in common,,,,,,,,,Big oil better hope the auto makers don't all go electric......they might not be needing so much gas in the future.
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- Hey white male, you confuse me. Raise wages, cut prices. How do you manage that trick. The jobs go overseas because we have already priced ourselves out of the world market. And the people talking protecting jobs. That was done in 1932 and the unemployment went from 6% to 28%. Of course with a Congress where neither party will talk to the other, I wouldn't be surprised if they did a redo on dumb.
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- Hyundai has been doing this for some time and their numbers are better then anyone's.....
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- My job went to India, so I can not buy a new car
Perhaps you can sell your cars there?
Oh, that's right, those folks don't make a living wage. Oh well...... - Reply to this comment
- You know what would spur new car sales? President Obama erase Federal mandates on motor vehicle construction.
Why does Congress think they have a right to mandate all new cars have a Tire Pressure monitoring system? I can check my own tire pressure as Americans have been doing for 100 years thank you. I don't need to finance a silly system some tree huggers think Americans need. They wanted to cut American oil use......well they did. They froze the market and it is collapsing.
Europe doesn't have Federal emission systems. They figured they would make gas so expensive people drive less, and tax vehicles per engine size. Their model is more efficient. Our model with Emission systems wants everyone to drive alot thinking they pollute less doing so.
Congress should get out of the mandating things for vehicles business. THEY increased vehicle prices with mandates on vehicle manufacturers....that eventually killed the market.
I don't see how they intend to be bailing out Auto Manufacturers when they are choking them at the same time. Well the patient has died Congress. You choked them too long. Bad Congress. - Reply to this comment
- theyre getting money and their cutting jobs.....aint dat smthing
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- Seems like we have beed dumped on for so long by the by the big money companys that ,the everyday working class people dont know when someone is trying to help.Look someone has to start somewhere to dig us out of the hole. Come on give the car companys a chance. What have you done to change? Whats done is done lets get on the same band wagon and pull ourself , our country out of the hole ! Im not proud by no means , but I have hope.
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- Skeptics! All of ya! And you've good reason to be. We've all been burned whether with a car loan or other financing offers. But most people aren't skeptics - they are consumers. Most who take up these offers are only interested in the 'monthlies' and care less about the details.
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- Why not just increase wages, get rid of all of the bonuses and stock options and golden parachutes and lower the prices on cars?
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- If this program makes you want to go out and buy a Ford, remember to visit www.kardawg.com before you shop.
They're not selling anything, it's free information. - Reply to this comment
- Oh, Ford isn't going to eat up to $700 a month on each car where the buyer has lost his or her job. Read the story - Ford is OFFERING, and if Ford is OFFERING, that means it will come at a cost...to the consumer. Please, these bean counters don't give ANYTHING away and this idea doesn't come out of the goodness of their hearts.
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- LOL what a scam, if you are out of work you get sofar behind that the LAST thing you'd want is any kind of car payment.
Gezus people buy USED! - Reply to this comment
- Don't be fooled. Ford is going to be producing their new car in Mexico. They are closing plants in the USA. We need to buy American made cars ! When I bought my car I had them show me on the paperwork where it was built. It matters.
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- What's the catch? Hyundai's catch is that they only cover $7500 if the car is to be returned..... This means that each consumer would have to put down a good 50-75 percent downpayment (depending on the price of the car) and if they do need to return the car, Hyundai can take the car, re-sell it used for far more than $7500 - leaving the consumer without their hefty deposit and without a car. Not such a good deal when you read the fine print. I'll be curious to see if Ford's plan fares any better!
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