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Bottom-line effect of Ford's Drive America incentive program

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Ford announced that the company would extend its most dramatic consumer incentive program in the company's long history: the Ford Drive America Program. The program provides consumers with either cash back or zero financing for new Ford vehicles. As the manager of a Ford franchise, how would you expect this program to impact your firm's bottom line? Explain.

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Solution Summary

The expected effect on sales and profits of Ford's cash back/zero financing Drive America incentive program.

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Neither cash back nor zero financing affects Ford's costs - the vehicles have already been manufactured and shipped to the dealerships. The Ford Drive America Program is an ...

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