3 Subcompacts Also on Expanded List : Ford Offers $1,000 Continental Rebate

Ford Motor Co. said today it is offering a rebate of $1,000 on its Lincoln Continental luxury model, and has expanded rebate offers on three subcompact models whose sales have lagged.

The rebates are the first offered by the auto maker on the luxury model, which has been in short supply since it was introduced in December, 1987.

Ford spokesman Ray Windecker said the Continental rebates do not reflect problems in selling the cars, but are in response to General Motors Corp.’s offer of as much as $2,000 on Cadillacs.

Ford also said it expanded rebates on the Escort, Festiva and Tracer models, in response to a slowdown in sales of the small cars. The Escort rebates were raised to $750 from $500, the Festiva rebates go to $400 from $300 and the Tracer’s rebate was increased to $1,500 from $1,000.

The rebate on the Tracer is particularly generous since it is about 20% off the $8,672 base price of the car.

Industry subcompact sales are down about 12% so far in 1989, while overall car sales are down about 8%.

Ford said the new rebate programs run indefinitely. Analysts said the timing of the rebates is unusual inasmuch as Ford’s current program expires in two weeks.