Thursday, March 24, 2005

2005 New York Auto Show

Ford plans ad blitz to boost SUV sales

Automaker will spend up to $50 million on Explorer, Expedition spring campaigns.

By Brett Clanton / The Detroit News

Ford Explorer Platinum Sport Error processing SSI file Comment on this story Send this story to a friend Get Home Delivery

NEW YORK -- Ford Motor Co. will spend up to $50 million on a two-month advertising campaign to stoke sales of its two most important SUVs, which have lost sales to competition and rising gas prices.

The Ford Explorer and Expedition will be featured in national TV ads in April and May, said Steve Lyons, president of the automaker's Ford division.

The campaign will highlight the vehicles' safety features, such as anti-rollover system and electronic stability control.

Ford hopes to improve the image of large SUVs, which have been blasted as gas-guzzling hogs prone to rollover accidents.

Ford will use the new advertisements to launch a new tagline for its family of SUVs, said Chris Feuell, Ford's SUV group marketing manager.

The campaign signals a different approach for Ford in selling large SUVs.

The nation's No. 2 automaker has mostly relied on fat rebates to attract buyers to its SUVs in the past couple of years.

"Rather than saying, 'We're not selling SUVs, let's put another $300, $500 or $700 (in rebates) on them,' we're actually taking money off of them" and making ads that focus on positive attributes of the vehicles, Lyons said during an interview at the New York Auto Show.

Explorer and Expedition sales have fallen 30 percent and 24 percent, respectively, this year, reflecting rising gas prices and a gradual shift by consumers to smaller, more fuel-efficient SUVs.

Ford has cut production of full-size SUVs in recent months as demand has fallen and inventories have risen.

"Ford has to emphasize the value of these proven vehicles and remind people that the magic is in the resale value and not in the fuel economy," said Jim Sanfilippo, an analyst with AMCI Inc.

If sales do not pick up after the campaign, the company will consider additional cuts in Explorer and Expedition output this summer, Lyons said.

Lyons said rising gas prices have hurt sales of large SUVs in recent months, breaking ranks with other Detroit automakers that have downplayed the significance of gas prices on sales.

The automaker's March sales, which are expected to increase over March 2004, might have been higher if it weren't for high gas prices, he said. Major automakers report March sales April 1.

Ford has further seen sales of its industry-leading F-Series full-size pickups soften in recent months, but Lyons said March should show stronger numbers for the trucks.

Last year, Ford sold 940,000 F-Series trucks.

You can reach Brett Clanton at (313) 222-2612 or bclanton@ detnews.com.