Ford Motor Company (F) and General Motors Company (GM) Incentives: Good or Bad Sign?

Ford will be counting on the Fusion, Escape, and F series to win back its lost market share, which fell from 16.8% in 2011 to 15.5% in 2012. And to try to get a sales boost in 2013, Ford, too is using some incentives, offering a “3 Payments on Us Cash” deal on several vehicles, including the Focus, Escape, Explorer, and Taurus.

Bottom line
So far, the automakers have largely remembered the hard lessons they learned during the recession and have avoided handing out large incentives. On the other hand, the automakers’ discipline hasn’t yet been tested, as pent-up demand is allowing the companies to enjoy increased sales with little need for incentives so far. The only guarantee we do have is that that will not always be the case. When the market changes, and it will, investors will have to keep an eye on incentives to make sure the automakers can retain their margins and profitability. The incentives we’ve seen so far, however, shouldn’t worry investors. In fact, they should serve a nice sales boost at little cost.

For now, enjoy the ride, as both automakers look poised for a great 2013.

The article Ford and GM Incentives: Good or Bad Sign? originally appeared on Fool.com and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford. Follow Daniel on Twitter for more automotive coverage. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.

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