• The Detroit News, Thursday, January 31, 2008 12 PM

Ford Motor will pump up incentive spending this year, target regions and older vehicles, and will give dealers more say over where and how the money is spent, sources familiar with the plan say. Key dealers were told about the plan during a meeting in Dearborn earlier this month, according to people who attended the session.

Cutting Ford's reliance on discounts and deals has been an important part of CEO Alan Mulally's turnaround strategy, which is aimed at transforming Ford into a smaller but profitable company. Ford sources say the decision to increase incentive spending does not represent a shift in that strategy.

Ford will use the money selectively to support specific models in specific markets. Moreover, instead of across-the-board bonuses designed to lure consumers into showrooms, it will target areas where it has a chance of stealing share from competitors.

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