And more are likely to come, analysts and industry observers say. As sales slow, new vehicles are stacking up at assembly plants and on dealership lots. On Dec. 1, the Big Three automakers each reported a decline in November sales, and Ford and DaimlerChrysler took steps to trim production to control swelling inventories. At the same time, automakers are pumping their consumer incentives to historic highs. I advertise them every time I have them,'' said Mike Case, new car and truck sales manager at Ron Clark Ford.
Manufacturers decide what units to put the money on and mainly they do it to spark sales.
That's the only reason they do it,'' he said. Case noted that the 0.9 percent financing advertised in the Sunday Amarillo News-Globe is offered through Ford Motor Credit, but Ford Motor Co. buys down the interest rate for the buyer. They're the ones who paid the difference,'' Case said. Although incentives and special financing can cut deeply into automakers' profits, they now loom so large in car sales that some dealers think they may be here to stay. A big part of our business is incentive driven,'' he said.