Automakers weren’t as generous with consumer incentives in October as they were in September, but shoppers can expect a new round of deals as manufacturers, particularly General Motors and Ford try to end the year with a flurry, analysts told the Associated Press (AP).
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Industry-wide, incentives averaged $US2,781 per vehicle in October, down 11% from the $3,120 average in the previous month, AP said, citing research firm Autodata Corp. Detroit’s Big Three automakers far outspent their Asian rivals – $3,730 vs. $1,347 – but continued to lose market share to the foreign brands.
Overall new car and truck sales were off 7% in October from a surprisingly strong September, but were up 2% from a year ago, the report noted. October’s results topped most forecasts, which anticipated a huge falloff following September’s heavy, incentive-induced demand.
Observers reportedly say part of the reason for the decline in incentives last month was the arrival en masse of 2005 models, which generally carry smaller discounts.
At GM, the average incentive outlay last month was $4,051, the highest of any major automaker but $289 less than September, AP said, adding that its October sales were off 5% from a year ago and its US market share was 25.4%, down from 27.3% in October 2003.
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By GlobalData“GM will likely strive for market-share targets at year-end, which we believe will translate into even more deals, most likely in December,” Merrill Lynch analyst John Casesa said in a research report cited by the news agency.
Casesa reportedly said Ford’s new car sales, off 5% last month, should begin to improve with the recent debut of several new models, including a new high-profile sedan. Ford’s average outlay on incentives per vehicle last month was $3,425, down from $3,808 in September.
“Ford’s car sales have likely bottomed out and should recover following the September launch of the new flagship Five Hundred, which replaces the aging Taurus,” Casesa told the Associated Press.
