31 March 2009

Ford Motor Offers Job-Loss Insurance

As Originally Posted at Bloomberg

Ford Motor Co., adjusting incentives as the U.S. recession deepens, said it will cover payments for as long as 12 months on new vehicles for buyers who lose their jobs.

The program will also offer no-interest financing through Ford Motor Credit Co., the Dearborn, Michigan-based automaker said today in a statement. The offers start today and run through June 1, covering Ford, Lincoln and Mercury autos.

“Consumers remain anxious about the economy and their own outlook for the future,” Ken Czubay, vice president of sales and marketing, said in the statement.

General Motors Corp. plans a similar program as both automakers struggle with a 39 percent decline in U.S. auto sales this year through February. GM will allow people who lose their jobs to return autos without penalty, people familiar with the matter said yesterday.

Hyundai Motor Co. started offering payment-protection incentives in January.

Ford also said it will work through its dealers to provide support to local charities because of the recession, with details to be announced in April.

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