FORD VEHICLE RESALE VALUES RISE $1,300 ON AVERAGE FROM 2009 TO 2010 MODEL YEAR

Ford Motor Company vehicles, bolstered by improved quality, fuel economy and popular redesigned models, recorded the largest increase in residual values from the 2009 to the 2010 model year among full-line manufacturers.

The projected resale value of Ford, Lincoln and Mercury vehicles after 36 months in service increased by $1,310 per vehicle from 2009 to 2010 models, more than any other full-line automaker. This calculation is based on the straight average of all trim levels of each nameplate from ALG's January/February 2010 Residual Value Forecast with volume being weighted against R.L. Polk new vehicle registration data.

"We are very pleased that the quality and fuel economy our products are delivering is reflected in our residual values," said Ken Czubay, Ford vice president, Marketing, Sales and Service. "We know future trade-in value is a very important factor to customers when they are shopping for a new vehicle."

Ford already held a residual value advantage over its U.S.-based rivals. With the improvement in the 2010 model year, Ford narrowed the gap with leading Asian automakers, including Toyota.

Some Ford vehicles have now surpassed competing vehicles from Toyota in average residual values. The 2010 Ford Fusion midsize sedan, for example, is expected to be worth $687 more than the 2010 Toyota Camry after 36 months in service. And the residual value of the 2010 Ford Flex full-size crossover commands an $1,800 premium over the Toyota Highlander.

A steady stream of new products has helped boost Ford's residual values. For example, the redesigned 2010 Ford Taurus's projected average resale value after 36 months in service is $4,862 more than the 2009 Taurus. The Taurus was redesigned inside and out and features a host of new features and technologies.

"The ultimate measure of the health of an automotive brand is its residuals," said Waldek Raczkowski, Ford residual business analyst. "We have great new products with good quality, fuel economy and technology. We are pricing our vehicles properly and setting our volumes appropriately to meet market demand. This adds up to a significant increase in residual values."

The 2010 Ford F-150 earned the 2010 ALG Residual Value award in the Full-Size Pickup category, and the 2010 Ford Taurus and 2010 Ford F-Series Super Duty received Kelley Blue Book's kbb.com Best Resale Value awards for the full-size car and full-size pickup categories respectively.

In addition, Ford's improved products and brand image is translating into higher residual values. Compete Inc., a Massachusetts research firm that studies online car shopping, says Ford has surpassed Toyota in customer consideration for the first time since it began tracking such data in 2002. Compete data show Ford surpassed Toyota in customer consideration in September, October and November.

Special Tax Break for New-Vehicle Purchases This Year

A glimpse of the sun in an otherwise overcast economy? The Internal Revenue Service announced recently that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns.

If you’re thinking about buying a new car, truck or SUV, this deduction could enable you to buy now and get cash back later on your tax return, an attractive incentive.

This is particularly good news for Ford shoppers. One of the industry’s most respected nameplates, Mustang, brings a sleek new entry to the table while Taurus, one of the most successful Ford cars in recent history, makes a stunning return to the showroom. The newest gas sippers, the 2010 Ford Fusion and Fusion Hybrid, share the title of the most fuel-efficient midsize sedans in America.* These are a few of the Ford family highlights.

The deduction applies to any new vehicle purchased after 2/16/09 and before 1/1/10.

Naturally, there are some restrictions and exceptions. To get all the facts, contact the IRS or consult your tax advisor.**

The point is simply this: It’s a great time to buy that Ford you’ve had your eye on.

*EPA-estimated 23 city/34 hwy/27 combined mpg, Fusion S I-4 automatic; 41 city/36 hwy mpg, Fusion Hybrid. Actual mileage will vary. Midsize class per R. L. Polk & Co. **The tax benefit to a purchaser will depend on individual tax circumstances and may be reduced or eliminated based on the purchaser's modified adjusted gross income. Customers should consult their tax advisors or the IRS to confirm processes and the amount of tax deduction that they may claim. For more information, log onto www.irs.gov.

FORD ADDS NEW REMOTE START FEATURE, HEATED STEERING WHEEL TO WARM CUSTOMERS

Ford, responding to increasing consumer demand, is heating up its vehicle lineup with winter-weather options including a factory-installed remote start system and heated steering wheel.

The remote start system will debut on the 2011 Ford Super Duty next spring and eventually will be offered across the Ford, Lincoln and Mercury lineup. Also next year, Lincoln will begin offering customers a heated steering wheel option, which will be available first on the new 2011 Lincoln MKX.

Ford has been offering a dealer-installed remote start kit since the late 1990s that has proven popular with customers. The kits rank as one of the top three Genuine Ford Accessories sold nationally for the past five years. In the past year, sales have increased 40 percent since Ford started installing the dealer remote starter kits at modification centers located near assembly plants.

The new factory-installed remote start, when integrated with the available automatic climate control system, measures the temperature and quickly creates a comfortable atmosphere with heating or air conditioning, heated or cooled front seats, and the front and rear defroster if needed.

“When you jump in a Ford car or truck, no matter the weather, it’s ready to go,” said Lisa Boran, a technical expert with Ford Body and Security Electronics. “We’ve been able to integrate these two features to improve upon the traditional remote start system.”

Improved emissions performance
Customers can also feel good about their decision to preheat or precook their ride, says Ford powertrain engineers and emission experts. Although remote start systems have been given a bad emissions rap in the past, it’s not true that leaving a car at idle pumps more hydrocarbons, CO and nitrogen oxides into the air.

John Shanahan, manager, Ford Powertrain Feature Calibration, explains: “The vast majority of a vehicle’s emissions are made during the drive-away after the car is started. Once the catalyst is warmed up, it will convert up to 99 percent of the engine-out emissions into less harmful gases. With remote start, along with getting the passenger compartment comfortable, you’re warming the catalyst while the vehicle is in neutral with lighter loads on the engine. We employ engine control features that maximize the catalyst warm-up, even if the engine is only idling. This will result in a more active catalyst when you drive away.”

That warmed-up catalyst can represent up to a 75 percent emissions reduction, depending on how cool the catalyst is and how hard the driver accelerates those first few times after a typical engine start.

Hot wheels
The heated steering wheel option coming to the Lincoln lineup is also about responding to customer needs, said Cole Buccafurri, Ford’s feature and branding manager. “Market research told us that a heated steering wheel was something our target Lincoln customer was definitely interested in,” he noted.

Throw aside the market research, the biological fact is that the human body functions better when it’s warm. The body’s initial response to cold is to preserve heat by reducing the blood flow to the hands and feet. For those who live in a winter-weather area, it’s that familiar tingle or numbness felt when hands and feet start getting cold.

That reduced blood supply equates to reduced dexterity in the fingers and hands, for example, which can hinder performance of simple tasks, such as screwing in a light bulb, opening a door or steering a vehicle out of a tight parking spot. A warm interior and a toasty steering wheel may also eliminate the need for heavy gloves while driving, which can further reduce tactile sensitivity and dexterity.

Warm my ride
Ford currently offers two dealer-installed remote start options: a one-way system, which will remotely start the vehicle from a key fob from up to 1,000 feet away; and a two-way, bidirectional option, in which the vehicle transmits a signal back to the fob verifying the start-up.
Launching later this month is an optional system that’s compatible with the Intelligent Access with Push Button Start system available on the 2010 Ford Taurus and Lincoln MKS, soon followed by the factory-installed system.

The 2011 Lincoln MKX will be first to offer the heated steering wheel option, and when combined with the factory-installed remote start system, it will also activate the heat on the steering wheel for that warm-to-the-touch winter morning welcome.

“Ford’s vehicles are constantly becoming more advanced,” said FCSD’s Kan. “So we’re always adapting and changing our product to keep up.”