DOW JONES NEWSWIRES
Average per-vehicle incentives from U.S. auto makers fell 2.4%
in October from September, following a traditional pattern at this
time of year, as older and more heavily discounted models no longer
make up the bulk of new cars sold, according to Edmunds.com.
Jessica Caldwell, an analyst with the car-shopping website, said
about 47% of the cars sold in October were of the 2010 model year,
compared with 63% the prior month.
The industry gave out an average $2,498 for each vehicle sold
last month. The number was also down 6.4% from last year.
Industrywide, U.S. incentives totaled $2.3 billion, down 6% from
September.
Among the top six auto makers, General Motors Co. and Ford Motor
Co. (F) spent more on incentives on a sequential basis, while
Chrysler Group LLC, Honda Motor Co. (HMC, 7267.TO), Nissan Motor
Co. (NSANY, 7201.TO) and Toyota Motor Corp. (TM, 7203.TO) spent
less.
Edmunds analyst Michelle Krebs said GM's 2010 models typically
are discounted by $2,245 more than GM's 2011 models, while Toyota
offers only $793 more for a 2010 model year. She said that explains
why the Japanese auto maker is having a harder time clearing out
its old inventory, saying only 45% of new Toyotas sold in October
were from the newer year.
Among vehicle segments, premium sports cars again had the
highest average incentives, followed by premium luxury cars.
Subcompact had the lowest, with sports cars next.
Last week, Edmunds projected four of the six major auto makers
are expected to see sales rise from a year ago, as consumers are
drawn to new models. A few auto makers already released their U.S.
sales figures, which suggested the industry had a solid month. For
example, Hyundai Motor Co. (HYMLY, 005380.SE) and Volkswagen AG
(VLKAY, VOW.XE) reported U.S. sales jumped 38% and 18%,
respectively, from a year ago.
The major auto makers will be releasing their October results
later Wednesday.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com