DOW JONES NEWSWIRES
Average per-vehicle incentives from U.S. auto makers climbed
2.6% in December from November, but they dropped 1% from a year
earlier, according to Edmunds.com.
"Incentives have dropped back to pre-recession levels after
surging in 2009 as manufacturers tried anything they could think of
to lure customers to buy their vehicles," said senior analyst
Michelle Krebs.
She added that while the industry averages are down, spending by
Japanese auto makers, led by Toyota Motor Corp. (TM, 7203.TO),
increased. The car-shopping website Edmunds.com estimated Toyota
boosted incentives by 19% in December from last year and by 1.6%
from November.
General Motors Co. (GM) spent 16% less on incentives in December
from a year ago, while Nissan Motor Co.'s spending on incentives
(NSANY, 7201.TO) fell 1.9%. Chrysler Group LLC, Ford Motor Co. (F)
and Honda Motor Co. (HMC, 7267.TO) all spent more.
When looking at year-end averages, Edmunds analyst Ivan Drury
noted Honda, Toyota and Nissan each spent more than they did in
2008 and 2009. The Detroit Three have lowered incentive spending
and yet are expected to gain market share, Drury said.
The industry gave out an average $2,528 for each vehicle sold
last month, up 2.6% from November.
Among vehicle segments, premium sports cars once again had the
highest average incentives, followed by large cars. Subcompact cars
had the lowest, with vans next.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com