Edmunds.com calculates that the average automotive manufacturer incentive in the US was $US2,580 per vehicle sold in June 2006, up $206, or nearly 9%, from May 2006, but down $265, or 9%, from June 2005.

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The industry’s aggregate incentives spending is estimated to have totalled approximately $4.0bn in June, up from $3.5bn in May.


Chrysler, Ford and General Motors spent an aggregate of $2.9 billion, or 73% of the total; Japanese manufacturers spent $684 million, or 17%; European manufacturers spent $287 million, or 7%; and Korean manufacturers spent $136 million, or 3%.


“Last year at this time, the domestics were responsible for 83% of the total incentive spending, and their market share was about ten points higher too,” noted Edmunds head analyst Jane Liu.


“This reflects a 12% decrease in incentives spending and a 16% decrease in market share year over year.”

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Combined incentives spending for domestic manufacturers averaged $3,465 per vehicle sold in June, up from $3,122 in May 2006. Compared with last month, Chrysler’s incentives spending was up $100 to $3,768 per vehicle sold; Ford’s incentives spending was up $438 to $3,647 per vehicle sold; and General Motors increased its incentives by $424 to $3,185 per vehicle sold.


From May to June, European automakers decreased incentives spending by $186 to $2,813 per vehicle sold; Japanese automakers increased incentives spending by $42 to $1,290 per vehicle sold; and Korean automakers increased incentives spending by $17 to $1,822 per vehicle sold.


Among vehicle segments, large SUVs continued to have the highest average incentives, $4,605 per vehicle sold, followed by large trucks at $4,183. Sport cars had the lowest average incentives per vehicle sold, $743, followed by compact cars at $876.


“Fuel economy continues to play a major role in vehicle purchase choices,” added Liu. “The gas guzzlers need a lot of help moving off dealership lots.”