Carmakers reduced spending on incentives for U.S. customers by 19% in May 2011

Article by Christian A., on June 2, 2011

Researcher Autodata Corp. said that carmakers lowered incentive spending for U.S. customers in May by 19% to an average $2,303 per vehicle. This is the lowest levels ever reported in the last five years.

Autodata said that Ford Motor Co.'s average spending on discounts and promotions fell by 20% to $2,432, compared to the previous year. Meanwhile, General Motors Co. cut incentives by $648, or 17% from the prior year, to an estimated $3,085 for each vehicle.

Chrysler Group LLC reduced its spending by 18% to $3,002. Autodata said that industrywide light-vehicle sales recorded a seasonally adjusted annual rate of 11.8 million last May. This is the lowest sales recorded since September. It came lower than the 12.1 million pace, which is the average estimate of 11 analysts that Bloomberg surveyed.

According to GM, major cuts to incentives have prompted buyers to defer purchases. Jesse Toprak, vice president of industry trends at TrueCar.com, said that the automakers “didn't want to be the one outlier spending at normal levels” when the others were reducing their incentives.

Autodata said that what resulted from this scenario was “poor retail sales." Even Japanese brands cut spending. Toyota’s incentives fell by 27%, or $515, to an estimated $1,408 per vehicle. Honda Motor Co. cut incentives to $1,513, 29% lower than the previous year. Nissan Motor Co. cut its discounts by 28% to $2,247.

If you liked the article, share on:

Comments

Recommended

Another day, another record. Is the new Dodge Challenger SRT Demon the fastest car to date? According to some sources, the Dodge Challenger SRT Demon had just beaten the Tesla...
by - April 24, 2017
Following in the footsteps of the McLaren 570S, 540C and 570GT is the newest addition to the McLaren Sports Series -- the roofless 570S Spider. McLaren 570S was rolled out...
by - April 24, 2017
The British automaker Lotus is noted for releasing low production, limited editions of its sports car lineage. Now the Hethel-based automobile manufacturer is back at it again with its latest...
by - April 24, 2017
Earlier this week, the revamped 2018 Mercedes-Benz S-Class was revealed ahead of the 2017 Shanghai Auto Show. As expected, Mercedes Benz’s flagship model is now offered in several variants including...
by - April 24, 2017
Well, this is clearly not good news for everyone. Ever since the new BMW M4 CS rolled out in Shanghai last week, several reports about its limited production have quickly...
by - April 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries