As inventories of Ford’s Fusion continue to outpace demand — the result of a second plant brought online last year to keep up with demand for the newly redesigned midsize sedan — the automaker has been raising incentives to move more Fusions out of the lot.
Automotive News reports most dealers around the United States are offering potential Fusion owners zero-percent financing for 60 months plus $1,000 cash back, with discounts up to $3,000 available for trade-ins to those who decline the financing; lessees receive no money due at signing with no payment for the first month of the lease.
The incentives — the most generous offered since the Fusion’s new look debuted in 2012 — come as inventories of the midsize sedan climbed to 97 days as of February 1 — up from 84 days in January — while sales of midsize cars overall have declined from a peak of 200,000 since August of last year, with winter weather holding back more sales.
Though Ford is spending $2,900 in incentives on every Fusion — Toyota’s Camry and Nissan’s Altima both hold higher incentives — the automaker’s chief analyst, Erich Merkle, says the car still commands the highest transaction price in the segment, and is confident inventories will thin as winter gives way to spring:
The midsize sedan segment is the most competitive segment in the industry right now. The good thing is average transaction prices are still very healthy.