The average auto manufacturer incentive in the United States was $US2,408 per vehicle in January 2005, up $43, or 1.8%, from January 2004, and down $104, or 4.2%, from December 2004, according to Edmunds.com.
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The firm’s monthly True Cost of Incentives report, which considers all manufacturers’ incentive offers, said combined incentives spending for domestic Chrysler, Ford and General Motors nameplates averaged $3,286 per vehicle sold in January, down $41 from December 2004.
This is the fourth consecutive month that Chrysler and Ford have decreased incentives.
Chrysler lowered incentives spending by $140 to $3,185 per vehicle sold in January, and gained 1.0% market share, capturing 14.0% of the US market. Ford decreased incentives spending by $91 to $2,833 per vehicle sold in January, while its market share fell by 0.1% to 17.3%. General Motors decreased incentives spending in January by $141 to $3,648 per vehicle sold in January, while its market share dropped by 2.5% to 24.7%.
In January 2005, Korean automakers decreased incentives spending by $286 to an average of $1,567 per vehicle sold, the group’s lowest level since November 2003. European automakers increased incentives spending by $35 to average $1,816 per vehicle sold and Japanese automakers increased incentives spending by $2 to average $1,078 per vehicle sold in January.
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By GlobalDataFrom December to January, Japanese manufacturers gained 1.3% and Korean manufacturers gained 0.3% market share while European manufacturers lost 0.9%, totalling 32.3%, 4.1% and 6.4%, respectively. This was a record high for the Japanese manufacturers.
In the same period, domestic manufacturers lost market share, declining from 57.6% to 57.0%.
“Honda, Nissan and Toyota consistently gain market share when Chrysler, Ford and General Motors decrease their incentive spending,” noted Edmunds data analysis chief Jane Liu.
Comparing all brands in January, Mini spent the least on incentives with $63, while Porsche spent only $77 and Scion spent $106 per vehicle sold.
At the other end of the spectrum, Lincoln was the biggest spender at $5,224 in January, followed by Cadillac at $4,755 and Pontiac at $4,471 per vehicle sold.
Looking at incentives expenditures as a percentage of MSRP for each brand, Pontiac spent the most, 18.2%, while Porsche spent the least, 0.1%.
Among vehicle segments, in January, large SUVs offered the highest average incentives, $4,169 per vehicle sold, while sports cars had the lowest average incentives per vehicle at $1,115. Considering incentives expenditures as a percentage of MSRP for each segment, large cars were the highest, 12.0%, while sports cars were the lowest, 4.0%.
Midsize SUVs have lost the most market share since January 2004, decreasing from 13.8% to 12.0%, while large cars have gained the most market share during that period, up from 4.8% to 6.3% of the new vehicle market.
