• by Erik Sass  @eriksass1, March 14, 2008

The celebrations may have been premature.

Earlier this week, the American Family Association declared victory after a two-year boycott of Ford, which it accused of condoning homosexuality in ads and supporting organizations that want to legalize gay marriage. But Ford quickly fired back, saying there was no such agreement, and any ad cutbacks were for purely financial reasons.

According to the AFA, headed by chairman Donald Wildmon, Ford conceded to all its key demands: no advertising in gay media, no promotions that donate part of a vehicle's cost to gay organizations, no supporting groups that campaign for gay marriage or civil unions, no supporting gay events like "pride" parades.

In an odd twist on the usual PR line, Ford responded by claiming poverty, citing financial woes for ad cutbacks. In a statement, spokesman Jim Cain added: "We are committed to treating everyone fairly and with respect, including our dealers, customers and employees."

He also promised that "Ford will continue to market its products widely to attract as many customers as possible and make charitable contributions to strengthen communities to the extent business conditions allow."

Some gay-rights activists voiced suspicions that Ford was simply using its financial difficulties as an excuse to drop gay media, finding a face-saving way of meeting the AFA's demands without appearing to cave. But an examination of the company's ad spending, and its continuing support of some gay groups, suggests otherwise.

Ford has certainly taken it on the chin in recent years. In 2007, total sales fell 13.6% compared to 2006, and on March 3 of this year, the company said its overall light vehicles sales fell 6.6%, with cars down 9.3%, indicating that the slide is continuing into 2008. It also announced plans to slash 2008 production by 10%, to 730,000.

The company says it still supports organizations that campaign for gay marriage and civil unions, including the Human Rights Campaign--one of the main objects of the AFA's ire. Volvo, a Ford company, is still listed by the HRC as a corporate donor in its "silver" category.