The average manufacturer automotive incentive in the United States was $US2,434 per vehicle sold in April 2005, up $67, or 2.8%, from April 2004, and down $121, or 4.7%, from March 2005, according to Edmunds.com.
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The industry’s aggregate incentives spending bill totaled $3.6 billion in April. Domestic manufacturers spent $2.8 billion, or 77%, of the total cost; Japanese manufacturers spent $528 million, or 14%; European manufacturers spent $178 million, or 5%; and Korean manufacturers spent $128 million, or 4%.
Overall, combined incentives spending for domestic Chrysler, Ford and General Motors nameplates averaged $3,339 per vehicle sold in April, down $133 from March 2005. Average domestic incentives have never been higher in any prior April. This month, Chrysler became the biggest spender by increasing incentives spending $28 to $3,535 per vehicle sold. At the same time, its market share increased by 0.2%, up to 13.8%. Ford decreased incentives spending by $78 to $2,986 per vehicle sold in April while its market share decreased by 0.6% to 17.3%. General Motors decreased incentives spending by $255 to $3,477 per vehicle sold while its market dropped by 1.4% to 25.0%. The combined market share of the Big Three reached an historic low of 56.1% in April 2005.
From March to April, European automakers decreased incentives spending by $48 to $1,919 per vehicle sold and increased its market share .05%, up to 6.2%. Japanese automakers decreased incentives spending by $45 to average $1,065 per vehicle sold and gained 0.9% market share, climbing to an all-time high: 33% of the U.S. market. Korean automakers increased incentives spending by $148 to $1,885 per vehicle sold and gained 0.4% market share to a total of 4.5%.
Comparing all brands in April, Mini spent only $14 on incentives, while Scion spent $136 and Porsche spent $161 per vehicle sold. At the other end of the spectrum, Lincoln was the biggest spender at $5,284, followed by Cadillac at $5,063 and Jaguar at $4,113 per vehicle sold. Looking at incentives expenditures as a percentage of MSRP for each brand, Pontiac spent the most, 15.4%, while Mini and Porsche spent the least, 0.1%.and 0.2%, respectively.
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By GlobalDataAmong vehicle segments, large SUVs continued to have the highest average incentives, $4,352 per vehicle sold, while sports cars had the lowest average incentives per vehicle at $93. Looking at incentives expenditures as a percentage of MSRP for each segment, large cars were the highest, 11.1%, while sports cars were the lowest, 3.2%.
