just-auto.com

USA: March incentive spend up 7% year on year

By just-auto.com editorial team | 5 April 2005

Edmunds.com said the average manufacturer automotive incentive in the United States was $US2,556 per vehicle in March 2005, up $177, or 7.0%, from a year ago, and up $187, or 7.9%, from February 2005.

Overall, combined incentives spending for domestic Chrysler, Ford and General Motors nameplates averaged $3,472 per vehicle sold in March, up $311 from February 2005.

Chrysler increased incentives spending by $200 to $3,507 per vehicle sold in March, while its market share decreased by 1.3%, down to 13.6%.

After five consecutive months of lowering incentives, in March Ford reversed course and increased incentives spending by $389 to $3,064 per vehicle, while its market share decreased by 0.8% to 17.9%.

General Motors also spent more money on incentives in March, up by $312 to $3,732 per vehicle sold, while its market share recovered from the record low of February - up by 2.4% to 26.4%.

In total, domestic manufacturers gained market share in March, increasing from 57.6% to 57.9%.

In March, Korean automakers increased incentives spending by $120 to an average of $1,737 per vehicle sold and lost 0.2% market share, achieving a total of 4.2%.

European automakers decreased incentives spending by $23 to average $1,967 per vehicle sold and lost 0.3% market share, achieving a total of 5.7%. This was the lowest market share for the European manufacturers since October 2001.

Japanese automakers increased incentives spending by $62 to average $1,110 per vehicle - a record high - and gained 0.2% market share for a total of 32.1%.

Comparing all brands in March, Mini spent virtually nothing on incentives, while Scion spent only $109 and Porsche spent $177 per vehicle sold.

At the other end of the spectrum, Lincoln was the biggest spender at $5,901 in March, followed by Cadillac at $4,831 and Jaguar at $4,529 per vehicle sold.

Looking at incentives expenditures as a percentage of MSRP for each brand, Pontiac spent the most, 16.5%, while Mini and Porsche spent the least, 0% and 0.3%, respectively.

Among vehicle segments, in March, large SUVs offered the highest average incentives, $4,290 per vehicle sold, while sports cars had the lowest average incentives per vehicle at $874.

Looking at incentives expenditures as a percentage of MSRP for each segment, large cars were the highest, 11.7%, while sports cars were the lowest, 3.0%.

Luxury cars have lost the most market share since March 2004, decreasing from 3.1% to 2%, while large trucks have gained the most market share during that period, up from 14.4% to 15.2% of the new vehicle market.