Edmunds.com reported on Friday that the average automaker incentive in the United States was $US2,566 per vehicle sold in May 2005, up $59, or 2.4%, from May 2004, and up $132, or 5.4%, from April 2005.
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The industry’s aggregated incentives spending totaled $3.8 billion in May. Domestic automakers spent $3 billion, or 79% of the total; their market share for vehicle sales was 57.4% for the month. Japanese automakers spent $530 million, or 13%; their market share was 32.0%, European automakers spent $171 million, or 4%; their market share was 6.1%. Korean automakers spent $119 million, or 3%; their market share was 4.4%.
Overall, combined incentives spending for domestic Chrysler, Ford and General Motors nameplates averaged $3,524 per vehicle sold in May, up $185 from April 2005, the highest May on record. Chrysler increased incentives spending $349 to $3,884 per vehicle sold in May — a record high for Chrysler. In the same period, the company’s market share increased by 0.6%, up to 14.4%. Ford decreased incentives spending by $47 to $2,939 per vehicle sold in May while its market share increased by 0.3% to 17.6%. General Motors increased incentives spending by $252 to $3,729 per vehicle sold while its market share increased by 0.4% to 25.4%.
From April to May, European automakers decreased incentives spending by $42 to an average of $1,877 per vehicle sold and lost 0.1% market share. Japanese automakers decreased incentives spending by $43 to an average of $1,108 per vehicle sold and lost 1.0% market share. Korean automakers decreased incentives spending by $76 to an average of $1,809 per vehicle sold and lost 0.1% market share.
Comparing all brands in May, Mini spent the least, $30 per vehicle sold, while Scion spent only $91 and Porsche spent just $269 per vehicle sold. At the other end of the spectrum, Cadillac was the biggest spender at $6,767 per vehicle sold, followed by Lincoln at $5,890 and Buick at $4,376 per vehicle sold. Looking at incentives expenditures as a percentage of MSRP for each brand, Mercury spent the most, 14.9%, while Mini and Porsche spent the least, 0.1% and 0.4%, respectively.
Among vehicle segments, large SUVs continued to offer the highest average incentives, $4,665 per vehicle sold, while sports cars had the lowest average incentives, $799 per vehicle sold. Looking at incentives expenditures as a percentage of MSRP for each segment, large SUVs had the highest, 10.9%, while sports cars had the lowest, 2.7%.
Midsize cars have lost the most market share since May 2004, decreasing from 16.3% to 15.2%, while luxury sports cars have gained the most market share during that period, up from 4.2% to 5.1% of the new vehicle market.
