• WSJ, Tuesday, March 7, 2006 12 PM

Sales of sport utility vehicles with hybrid engines are faltering, so to counteract the trend, Ford Motor Co. will increase its marketing efforts. The plan calls for millions of dollars in marketing spending and new incentives designed to lure customers to Ford's hybrids, which use both gasoline and electricity to power the car. Ford entered the segment in 2004 with the launch of its Escape Hybrid SUV. It built 19,000 hybrids for the North American market last year and sold 17,000, accounting for less than 10 percent of total hybrid sales in the U.S. By 2010, Ford plans to produce as many as 250,000 hybrids a year. But this year sales are stalling. So far, Ford has sold only about half of the total hybrids it has capacity to make, and the company recently doubled cash incentives for buyers to as much as $1,000 a vehicle. In the first two months of this year, Ford sold only about 2,000 hybrid-equipped vehicles. To generate new interest, the company recently introduced new advertising featuring the company's chief executive, Bill Ford Jr., and Muppets character Kermit the Frog to promote its "green" image and remind consumers that Ford offers hybrids. The hybrid segment is currently dominated by Toyota Motor Corp. and Honda Motor Co., which together account for about 90 percent of the U.S. market.

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