List of News and Information about incentives on 4WheelsNews.com
News and Information about incentives
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The battle for dominance in the market for large, luxurious body-on-frame sports utility vehicles is already heating up even before Ford commences sales of its new Lincoln Navigator SUV. This comes as GM decided to offer a trade-in deal that sees $5,000 off a new Cadillac Escalade.
Ford is all set to begin sales of the new Navigator SUV sometime next week. It is a massive improvement over the current iteration. There is also a massive step-up in price, with the new Lincoln Navigator having a manufacturer’s suggested retail price (MSRP) of $72,055. As a new generation vehicle that boasts of being a far cry from the current version, the Lincoln Navigator is attracting a lot of attention, and that could potentially translate to huge sales.
On the other hand, GM is offering the Cadillac Escalade for the 2018 model year. While it is not an outgoing model, the 2018 Cadillac Escalade hasn’t received major enhancements since the 2015 model year. Although the Cadillac Escalade is expected to remain a dominant force in its segment, its sales superiority is being challenged heavily by the new Lincoln Navigator. In short, GM will be having its hands full defending its position in the luxury SUV segment until it rolls out a new generation -- or even a major update -- of the Cadillac Escalade.Read the entire article $5,000 discount is offered for trade-ins of Lincoln Navigator for 2018 Cadillac Escalade
Incentives of up to EUR10,000 can be had by Audi customers who are willing to trade-in their older diesel vehicles to new Audi units that are compliant with the Euro 6 standard. This comes as Audi offers enticing trade-in incentives to clients owning diesel cars compliant only with emission standards Euro 1 through Euro 4.
Audi’s delicious trade-in bonuses come as the premium carmaker, along with other German carmakers, agreed to a series of environmental measures with the government of Germany, which are all aimed at reducing nitrogen oxide (NOx) emissions from diesel vehicles by the end of 2018.These German carmakers were also urged to employ self-financed competitive measures to provide incentives for the shift from pre-Euro-5 diesel vehicles. As for Audi, its program was created to help accelerate the replacement of older diesel vehicles with modern and more eco-friendly cars.
In compliance with recent National Diesel Forum, Audi is offering incentives to all drivers of diesel cars with the emission standards Euro 1 through Euro 4, regardless of the model or brand, as long as the customer trades in for an Audi vehicle. Attractive conditions are also being offered for customers who are changing over to a late-model used Audi. Financed by Audi AG, these incentives are granted directly through the Audi dealerships, with customers not needing to make separate applications. The incentive offer is only available through December 31, 2017.Read the entire article Audi is dangling EUR10,000 trade-in incentives for Euro 1 to 4 diesel vehicles in Germany
Hyundai Motor Group exceeded analysts’ expectations by posting a 1% increase in U.S. sales for April 2015 – a feat it accomplished by offering bigger incentives for the Hyundai and Kia brands. Hyundai Motor America reported a 3% increase in sales to 68,009 units – breaking April records. Meanwhile, Kia Motors America posted a 1% decrease from the record set last year with 53,282 units sold.
Nevertheless, it’s still its second-best sales for April. In a statement, Bob Pradzinski, vice president of sales at Hyundai’s U.S. sales arm, said that it has set records for April six years straight as it enters the spring selling season. He said that this momentum is expected to continue with the launch this spring of the hybrid and plug-in hybrid versions of the Sonata midsize sedan.
However, Hyundai posted these gains at a cost. Last month, Hyundai spent $2,710 for each car on incentives, about 48% higher than April last year, according to TrueCar Inc. Kia also increased its incentives per car by 26% to $2,758. Throughout the industry, per-car incentives had only risen by 1% in April as carmakers like Ford and GM limited their expenses and benefit from the expanding market for trucks and crossovers.Read the entire article Higher incentives drove Hyundai Group to achieve 1% US sales gain in April 2015
General Motors’ top executives, including chief executive Mary Barra, were awarded shares in the company as part of a long-term incentive plan, according to filings with the United States Securities and Exchange Commission. Barra was awarded 79,639 restricted shares that will vest annually over three years starting February 2016, up from the 50,015 shares granted in February 2014.
The value of common shares will depend on the value of GM stock when sold. But using the closing price of $37.62 for GM shares on Feb. 13, 2015, Barra's total stock award would have a value of around $3 million. Counting her salary of $1.6 million, Barra is expected to receive a total of $14.4 million including stock awards.
GM is expected to give that amount to Barra when its issues its proxy statement, which historically occurs in April. On the other hand, GM president Dan Ammann was awarded 29,865 shares, valued at $1.1 million based on Friday’s share price.Read the entire article GM top execs were granted shares as part of incentive program
BMW outsold Mercedes-Benz in the United States in 2014. But behind that, BMW also outspent Mercedes in the US in terms of incentives. In fact, while both German luxury carmakers increase their incentive spending, BMW was shelling out over $670 per vehicle more than Mercedes. Both carmakers also managed to break their previous sales records in the US.
BMW's average incentive spending per sale jumped 32 percent or $1,198 last year to $4,910, according to Autodata. On the other hand, average incentive spending per sale at Mercedes, excluding Sprinter, climbed 11 percent or $433 to $4,237. The incentive gap between BMW and Mercedes also widened from 2013, when the former was spending an average of $3,712 and the latter an average of $3,804.
The reversal in the average incentive spending also translated to a reversal in the No. 1 and No. 2 posts. Jesse Toprak, chief analyst for Cars.com, remarked that BMW’s extra boost of incentive spending in December allowed it to sell enough volume to surpass Mercedes for the full year.Read the entire article BMW outguns Mercedes-Benz both in sales and incentives in the US in 2014
Sergio Marchionne, chief executive of Fiat Chrysler Automobiles NV as well as FCA US, believed that incentive spending in the United States has not gotten out of control. He said that he believed that the auto industry as a whole is healthy and there is no need to sacrifice profits just to gain market share – just like before the financial collapse of Chrysler and General Motors in 2009.
He noted that there are two signs that indicate the state of health of the industry -- incentives and inventory levels. “We’re miles away from 2009,” he quipped. Marchionne also said that that the auto industry may have, on some instances, over-reacted on recalls. He said that in a lot of ways, the “all-encompassing issue to the airbag issue may have been overkill.”
FCA’s top honcho said the National Highway Traffic Safety Administration and the auto industry will be able to find an equilibrium over the next 12 to 18 months. He, however, said that that the costs incurred for the recalls will be ultimately passed on to consumers.Read the entire article Sergio Marchionne says US incentive spending is not out of control
The Russian government plans to allocated RUB10 billion (EUR150 million) next year in a bid to extend an incentives program for new auto purchases, according to Industry and Trade Minister Denis Manturov. The Russian economy has taken toll from Western sanctions imposed over the Ukraine crisis as well as falling oil prices that has weakened the local currency.
This has led to higher inflation that has forced Russians to put off making large purchases. Manturov also said that the government has allocated another RUB2.9 billion for the program this year.
He quipped in August that Russia would allocated RUB10 billion to finance the incentives this year. Under the current program, those who scrap or trade their old vehicles could avail of at least RUB40,000 in discount when purchasing new passenger cars or at least RUB350,000 when buying commercial vehicles.Read the entire article Russia to allocate 150 million euros for 2015 auto incentive scheme
The incentives that the Russian government is providing for new-vehicle purchases could go beyond 2014, according to the Industry and Trade Ministry citing industry minister Denis Manturov. The ministry, however, provided no details of possible additional funding of the scheme.
Russia has already allotted RUB10 billion ($244 million) to fund the trade-in program that will last until to the end of 2014, as part of an effort to support the auto industry as it tries to go through a current economic slump. In fact, the Russian auto market has seen vehicle sales falling.
Auto sales in Russia dropped 20 percent and 26 percent in August and September, respectively, according to the Association of European Businesses lobby group. Russia’s already slumping economy is suffering further from western sanctions over the current conflict in Ukraine as well as from consumer delaying making large purchases – all resulting to lower demand for vehicles.Read the entire article Russia’s car purchase incentive scheme could be extended into 2015
Despite the fact that it doesn’t expect high volume sales, Volkswagen will not offer any sales incentives for the e-Golf a.k.a. the electric version of the Golf. As a result, there will be no batter-hire scheme like that offered by Renault for its electric models, or any system of credits that gives owners access to combustion-engined cars for longer trips, available for the BMW i range.
The first deliveries of the e-Golf arrived at the end of August in the United Kingdom, and the electric car will be available for 25,845 GBP after the Government’s 5,000 GBP low-CO2 grant. Still, Volkswagen will offer the e-Golf for 229 GBP a month on a PCP plan.
According to the manufacturer, the e-Golf customers are likely to be fleets and sales will be in the hundreds rather than the thousands. For those who don’t know, the e-Golf uses an electric motor that produces 115 hp (85 kW) and 270 Nm of torque.Read the entire article VW will not offer special sales incentives for the e-Golf in the UK
Cadillac does not have any plan to trim its sticker prices or offer sweeter incentives to sell more vehicles in the United States, brand chief Johan de Nysschen told Automotive News in an interview. De Nysschen said that Cadillac should be willing to leave behind its traditional customer base as it tries to woo higher-end consumers it is currently appealing to by offering a revitalized vehicle lineup.
He remarked that it would take several years before those who have been attracted with German luxury brands to consider Cadillac. The marque has seen its sales in the United States drop 5 percent in the first eight months of 2014, in contrast to an eight-percent surge by the overall US luxury car market during the period.
US sales accounted for around 73 percent of Cadillac global deliveries last year. Dealers have found their lots full of inventories, as the brand logged sluggish sales across its sedan lineup. Bloated inventories have been so far blamed on Cadillac’s strategy of pricing its products vis-à-vis its German rival, saying that higher prices of its models have discouraged buyers.Read the entire article New Cadillac chief not planning to slice prices or sweeten incentives
German luxury carmakers were able to post their best sales month in eight years in August 2014 in the United States, thanks to higher discounts that BMW, Audi and Mercedes-Benz have been offering to buyers in the country. BMW was the biggest spender among the three in term of per-vehicle-incentives, hiking the figure 45 percent in August, according to researcher Autodata Corp.
Autodata also disclosed that Mercedes and Audi boosted their promotional spending by 30 percent and 71 percent, respectively. Higher incentive spending at an auto industry that driving economic growth at the US could be a cause of concern. In fact, the industry-wide average discount per vehicle had surged 5.5 percent in the first seven months of 2014.
Bigger deals allowed carmakers achieve 17.5 million vehicles in annualized sales rate in August. Akshay Anand, an analyst at Kelley Blue Book, remarked that because of increasing incentive spend, higher subprime lending, and longer loan terms, there is cause for concern and a reason why gains would slow down.Read the entire article Higher incentives allow German luxury carmakers to post record in August 2014
Russia is allocating RUB10 billion (EUR207 million) to finance incentives for new vehicle purchases this year, the country’s industry minister disclosed. The incentives represent a long-awaited relief for both carmakers and customers in a auto market hit by the crisis.
The scheme is set commence in September and is slated to end by yearend. The scrappage program is expected to subsidize the sale of over 170,000 passenger and light commercial vehicles, buses and trucks, according to Industry Minister Denis Manturov.
Under the scheme, buyers could get a discount of at least RUB40,000 (EUR825) when scrapping their old vehicles, with the discount for commercial vehicles starting at RUB350,000. Russia also implemented a state-supported scrappage scheme in 2010, offering consumers cash incentives for trading in vehicles over 10 years old.Read the entire article Russia to set aside 207 million euros to support new incentive scheme
Ford Motor Co. sold 10 percent more vehicles in July 2014 than it did in the same month last year. Ford sold a total of 211,467 vehicles in July, with 203,604 coming from its namesake brand (up 9 percent) and 7,863 coming from its Lincoln premium marque (up 14 percent). Ford said July incentives surge an average of $400 per vehicle over the same month in 2013, while transaction prices dipped $360.
Stronger sales in July comes the carmaker is in the midst of its largest product offensive so far, rolling out 16 new or refreshed vehicles this year alone. Erich Merkle, Ford sales analyst, noted that also means that a record number of products are nearing end of their life cycle.
Ford posted its largest gains on crossovers and SUVs (17 percent) while sales of cars and trucks jumped 6 percent and 7 percent, respectively. Particularly, Ford’s Fusion mid-sized sedan managed to break its own July sales record, surging 17 percent to 23,942 – thanks to higher incentives and lower transaction prices.Read the entire article Ford sold 10 percent more vehicles in July 2014 thanks to incentives
UPDATE: It appears that things are working quite well for General Motors as company's Senior Manager, Sales & Communications James R. Cain has just told us in an email that the incentives offered to recall customers did not have a major impact on their sales in April 2014.
An aggressive subsidy campaign by General Motors to appease owners of vehicle models covered by the current faulty ignition switch recall might have helped the carmaker win a 7-percent jump in sales in April. Since early March this year, GM has been offering affected owners $500 for the purchase of a certified pre-owned vehicle.
Then, the carmaker made the deal sweeter by making the owners eligible for employee pricing on a new vehicle. Those bonuses are on top of incentives for which the customer qualifies.Read the entire article GM incentives helped offset effect of recalls on April 2014 sales
Upset that Ram outsold the Chevrolet Silverado in March in the United States, General Motors wasted no time and resources to recover what it believes belongs to it – sales and shares in the US pickup truck market. The Ram sold 42,532 pickups in the month while the Silverado delivered 42,247 units.
The results prompted Chevrolet to extend its March Truck Month promotion into April, hike lease incentives and boost consumer savings on certain Silverado models. Chevrolet Vice President Brian Sweeney wrote in the brand’s Dealer Playbook for April that there will be an additional $1,000 of bonus cash on light-duty Silverado double cabs aimed that allow them to “get after the heart of the pickup market.”
The March Truck Month promotion offered discounted supplier pricing for all buyers on 2014 Silverado trucks as well as savings of up to $7,541 on certain models. Chevrolet boosted those bonuses for this month; bringing up consumer savings on 2014 models up to $8,162 for the light-duty double cab V-8, and up to $8,974 for a 4x4 diesel Silverado 2500HD crew cab.Read the entire article GM ups incentives on Silverado after losing to Ram in March 2014 sales
Ford Motor Co. is offering increased incentives on its Fusion sedan to help clear out the rising inventories. Ford is now offering the Fusion with zero-percent financing for 60 months plus $1,000 cash back. Ford is likewise offering leases with no money due at signing and no first payment; or discounts of up to $3,000 for buyers who refuse the financing and make a trade-in.
According to dealers and analysts, Ford’s latest offers are the most generous deals on the Fusion since the current generation was rolled out in 2012. "The car is selling, but not as fast as they're building them," said Larry Taylor, owner of Beau Townsend Ford in Vandalia, Ohio. "They've buried us."
Taylor remarked that he has sold only 17 units so far this month, and still has 90 on his lot. In addition, the dealership will receive 100 in the near future. Ford had a 97-day supply of the Fusion as of Feb. 1, up from 84 days as of Jan. 1, according to the Automotive News Data Center.Read the entire article Ford is expanding Fusion incentives to clear out inventories
Running from February 5 to 28, Chevrolet and Buick-GMC’s Presidents Day promotion entails providing huge incentives to dealers, according to a summary sent to dealers. The General Motors brands are offering $500 to $2,000 cash on most models and have sweetened a lease pull-ahead agreement that will waive two months of payments up to $1,000 for lease customers.
The Presidents Day promotion features the deep price cuts on its redesigned 2014 Chevy Silverado and GMC Sierra pickups. Likewise, all V-6 Silverado and Sierra models will be eligible for the same discounted prices GM offers to employees of its suppliers. Supplier pricing is the dealer invoice price, plus destination charge and a $150 program fee.
Chevrolet plans to advertise over $7,000 discount on its double cab V-6 All Star model. GM's share of the full-sized pickup market has dropped since the launch of the redesigned Silverado and Sierra last summer.Read the entire article Chevrolet and Buick-GMC are offering dealer incentives this month
Daimler is planning to trim sales incentives on Mercedes-Benz vehicles and hike prices of some models as demand for them continues to outpace supply, chief executive Dieter Zetsche has remarked. Zetsche said that he expects "pricing to improve significantly" in 2014, adding that in every country he visits, dealers were pleading him to provide more of the Mercedes’ compact cars like the new CLA.
Daimler posted a 44-percent surge in deliveries of compact vehicles and a 43-percent hike in sales of the revamped flagship S class in the fourth quarter of 2013.
Daimler expects its operating profit from ongoing operations for 2014 to surpass the EUR7.9 billion ($10.7 billion) posted in 2013. Zetsche has vowed to reclaim the luxury-car sales crown by 2020 after losing it to BMW in 2005 and yielding second place to Audi in 2011.Read the entire article Daimler to cut Mercedes-Benz sales incentives this year
Kia posted an 11-percent gain in vehicle sales in the United States in November 2013, boosted by a 77-percent surge in sales of the 2013 Kia Soul. That boost could be the result of a last-minute one-day incentive program offered by Kia to its dealers. On Dec. 2, the last day of the November sales reporting period, Kia sent a memo to its dealers offering $1,800 in bonus dealer cash for each 2013 Kia Soul sold that day.
According to dealers, the incentive program would be the last one offered on the 2013 Soul, with subsequent sales no longer counted toward monthly stair-step incentive programs. What is more interesting is that the timing of the memo means that dealers had only a few hours to report the cars as sold to qualify for the $1,800 bonuses.
To avail of the program, some dealers told Automotive News that the short window given to them left them no choice but to report the 2013 Kia Souls as sold on Dec. 2, and then try to sell them to actual customers later.Read the entire article Kia dealers’ one-day incentive program made 2013 Soul sales go up 77%
The Spanish government has offered its fourth car incentives program in a year as part of its bid to boost vehicle sales. The Spanish government has already green-lighted the EUR70 million ($97 million) program, according to Deputy Prime Minister Soraya Saenz de Santamaria. The EUR1,000 subsidy is available for new cars having a price of EUR25,000 or less.
The subsidy must be matched by a discount from the dealership under the so-called "cash-for-clunkers" program. Buyers must also trade in a seven- to 10-year-old car in exchange for a more fuel-efficient vehicle.
According to Saenz de Santamaria, the previous three incentives programs – which have all run out – helped in the purchase of 300,000 vehicles. The fourth batch of incentives will have a duration of six months, or until funds run out.Read the entire article Spain government approves $97 million incentive program
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