After declining for several months, the average cost of incentives offered by the six major automakers to move their cars off dealer showrooms is headed back up, according to the latest analysis by Edmunds.com.
|
True Cost of Incentives for the “Big Six” Automakers |
|||
|
Automaker |
May 2007 |
April 2007 |
May 2006 |
|
Chrysler Group |
$4,050 |
$4,250 |
$3,668 |
|
Ford |
$3,040 |
$3,021 |
$3,209 |
|
General Motors |
$2,963 |
$2,813 |
$2,761 |
|
Honda |
$1,399 |
$1,069 |
$922 |
|
Nissan |
$2,083 |
$1,955 |
$2,553 |
|
Toyota |
$1,140 |
$1,027 |
$886 |
Chart prepared by Edmunds.com
“The summer incentives hike has started. In previous months, we have seen year-over-year declines in incentives spending, but this month the trend reversed,” Jesse Toprak, Executive Director of Industry Analysis for Edmunds.com, said in a prepared statement.
“Automakers typically enjoy the highest sales volumes during the summer months in part because of the generous offers intended to match customers to remaining inventory – and the incentives only get bigger as the end of the current model year approaches,” he added.
According to Edmunds.com, combined incentives spending for domestic manufacturers averaged $3,258 per vehicle sold in May 2007, down from $3,269 in April 2007. From April to May, European automakers increased incentives spending by $483 to $3,510 per vehicle sold; Japanese automakers increased incentives spending by $156 to $1,374 per vehicle sold; and Korean automakers decreased incentives spending by $233 to $1,524 per vehicle sold.
In May, the industry’s aggregate incentive spending is estimated to have totaled approximately $3.7 billion, up from $3.3 billion in April. Chrysler, Ford and General Motors spent an aggregate of $2.5 billion, or 67.3 percent of the total; Japanese manufacturers spent $736 million, or 19.9 percent; European manufacturers spent $367 million, or 10 percent; and Korean manufacturers spent $107 million, or 2.9 percent.
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