Automakers Trimmed September U.S. Incentives 3.5 Percent, Autodata Says
Automakers, while beating estimates for industry sales, reduced spending on incentives for U.S. customers in September by 3.5 percent to an average of $2,653 per vehicle, according to Autodata Corp.
Ford Motor Co., the second-largest U.S. automaker, cut spending on discounts and promotions by 6.6 percent from a year earlier to an estimated $2,845 per vehicle, Woodcliff Lake, New Jersey-based Autodata said yesterday in an e-mailed statement. Chrysler Group LLC’s incentives fell 5.7 percent to $3,425. Nissan Motor Co. reduced discounts by 5.7 percent to $2,748, according to Bloomberg.
Industrywide light-vehicle sales ran at a seasonally adjusted annualized rate of 13.1 million in September. That’s the fastest pace since April’s 13.2 million and exceeds the 12.8 million rate that was the average of 14 analysts’ estimates. Toyota Motor Corp. and Honda Motor Co., which returned to full output last month for the first time since Japan’s tsunami in March, boosted incentive spending during the month.
“There will be temptation for automakers to pump up incentives to grab that market share that was lost over the summer,” Dan Montague, an analyst at the Autofacts forecasting unit of PricewaterhouseCoopers LLP, said yesterday. “Incentives will rise, there’s no question about that. But there won’t be any type of incentive war like what we’ve seen in the past.”
Honda, the second-largest Japanese automaker by U.S. sales, increased spending by 6 percent to $2,337 per vehicle. Toyota raised incentives 5.5 percent to an estimated $2,238, Autodata said. General Motors Co. boosted incentives 1.9 percent to $3,289 per vehicle.
Through September, industrywide average spending on U.S. incentives fell 9.6 percent to $2,498 per vehicle.
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →