The average automotive manufacturer incentive in the US was US$2,519 per vehicle sold in March 2008, essentially unchanged from February 2008, and up $94, or 3.9%, from March 2007, according to analysts at Edmunds.com.
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“Incentives are likely to rise through the spring and summer,” said the company’s industry analysis head Jesse Toprak. “We anticipate that this will be especially true for the European automakers, as long as the euro remains strong.”
Combined incentives spending for domestic manufacturers averaged $3,424 per vehicle sold in March 2008, up from $3,384 in February 2008.
From February 2008 to March 2008, European automakers increased incentives spending by $236 to $3,067 per vehicle sold; Japanese automakers decreased incentives spending by $73 to $1,295 per vehicle sold; and Korean automakers increased incentives spending by $352 to $2,126 per vehicle sold.
In March 2008, the industry’s aggregate incentive spending is estimated to have totaled approximately $3.34bn, up 13.6% from February 2008. Chrysler, Ford and General Motors spent an aggregate of $2.3bn, or 67.7% of the total; Japanese manufacturers spent $658 million, or 19.7%; European manufacturers spent $290 million, or 8.7%; and Korean manufacturers spent $130 million, or 3.9%.
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By GlobalData“Chrysler pulled up the industry average incentives spend this month,” added Edmunds’ AutoObserver.com senior editor Michelle Krebs. “The investment in incentives seems aimed at jump-starting sales to improve the company’s bottom-line numbers. This coincides with its recent announcement of a two-week summer shutdown and other dramatic plans to reduce operating expenses.”
Among vehicle segments, large trucks had the highest average incentives, $4,368 per vehicle sold, followed by large SUVs at $4,094. Compact cars had the lowest average incentives per vehicle sold, $1,023, followed by sport cars at $1,574.
