Edmunds.com said the average manufacturer automotive incentive in the United States was $US2,369 per vehicle sold in February 2005, down $90, or 3.7%, from February 2004, and down $39, or 1.6%, from January 2005.

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Overall, combined incentives spending for domestic Chrysler, Ford and General Motors nameplates averaged $3,161 per vehicle sold in February, down $125 from January 2005, and gained market share, increasing from 57.0% to 57.6% of the total U.S. market.


Chrysler increased incentives spending by $122 to $3,307 per vehicle sold in February and gained 0.9% market share, capturing 14.9% of the U.S. market, the highest since February 2001. In February Ford decreased incentives by $158 to $2,675 per vehicle sold – the fifth consecutive monthly decrease – and grew its market share by 1.5% to 18.8%. General Motors decreased incentives spending by $228 to $3,420 per vehicle sold in February, while its market share dropped by 1.7% to 24.0%, a record low.


In February, Korean automakers increased incentives spending by $50 to an average of $1,617 per vehicle sold, and gained 0.3% market share, reaching 4.4% of the U.S. market. European automakers increased incentives spending by $173 to average $1,989 per vehicle sold, and lost 0.4% market share, falling to 6.0% of the U.S. market, the lowest total since February 2001.


Japanese automakers decreased incentives spending by $30 to average $1,049 per vehicle sold in February, and lost 0.4% market share, dropping to 31.9% of the U.S. market.

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Comparing all brands, in February Mini spent the least on incentives, $21, while Porsche spent only $78 and Scion spent $116 per vehicle sold.  At the other end of the spectrum, Lincoln was the biggest spender at $5,513 in February, followed by Jaguar at $4,657 and Cadillac at $4,599 per vehicle sold. Looking at incentives expenditures as a percentage of MSRP for each brand, Pontiac spent the most, 14.6%, while Porsche and Mini each spent the least, 0.1%.


Among vehicle segments, large SUVs had the highest average incentives, $4,120 per vehicle sold, while sports cars had the lowest average incentives per vehicle, $920.


Looking at incentives expenditures as a percentage of MSRP for each segment, midsize cars were the highest at 10.2%, while sports cars were the lowest at 3.2%. Midsize SUVs have lost the most market share since February 2004, decreasing from 12.6% to 11.7%. Large cars have gained the most market share during that period, up from 5.0% to 6.3% of the new vehicle market.