• Business Week, Monday, April 21, 2008 10:15 AM

As sales for SUVs and pickup trucks have taken a steep turn for the worse, automakers are scrambling to tailor their marketing and incentive efforts region by region.

In areas of the country where truck sales remain relatively strong-- like Texas--additional advertising and marketing money can be a better investment than in depressed markets. Demand in down markets is limited to people with a practical need to replace a worn-out vehicle and who may need help with financing. Advertising could have little effect.

The truck markets that are hardest hit are those most affected by the burst housing bubble, like Florida and California; plus regionally depressed areas, like the Gulf Coast or industrial Michigan. In response to falling trade-in values for pickups and SUVs, Ford, for example, has redirected its incentive money into cash-back incentives, as opposed to low interest rates. The cash is aimed at helping customers who owe more on the trade-in than it's worth.

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