Ford said it won’t raise prices on its new cars.

The No. 2 auto maker, reacting to General Motors’ recent 2.9% price increase on new cars, also unveiled a new cut-rate auto loan program. Ford mentioned GM by name in its announcement, an unusual move apparently designed to give Ford’s loan program some extra mileage. The new program, which offers 7.9% rates on three-year loans, covers the Ford Escort, Tempo, Mustang and Thunderbird and the Mercury Lynx, Topaz, Capri and Cougar.