FOR IMMEDIATE RELEASE
Edmunds.com Reports True Cost of Incentives for June: Minivans Subsidized at Near Record Levels
SANTA MONICA, Calif. — July 3, 2007 — Edmunds.com, the premier online resource for automotive information, estimated today that the average automotive manufacturer incentive in the U.S. was $2,483 per vehicle sold in June 2007, up $92, or 3.85 percent, from May 2007, and down $132, or 5.05 percent, from June 2006.
Edmunds.com's monthly True Cost of IncentivesSM (TCISM) report takes into account all automakers' various U.S. incentives programs, including subvented interest rates and lease programs, as well as cash rebates to consumers and dealers. To ensure the greatest possible accuracy, Edmunds.com bases its calculations on sales volume, including the mix of vehicle makes and models for each month, as well as on the proportion of vehicles for which each type of incentive was used.
According to Edmunds.com, combined incentives spending for domestic manufacturers averaged $3,200 per vehicle sold in June 2007, up from $3,139 in May 2007. From May to June, European automakers decreased incentives spending by $230 to $3,108 per vehicle sold; Japanese automakers increased incentives spending by $163 to $1,484 per vehicle sold; and Korean automakers increased incentives spending by $39 to $1,554 per vehicle sold.
In June, the industry's aggregate incentive spending is estimated to have totaled approximately $3.8 billion, up from $3.7 billion in May. Chrysler, Ford and General Motors spent an aggregate of $2.6 billion, or 67.2 percent of the total; Japanese manufacturers spent $823 million, or 21.4 percent; European manufacturers spent $322 million, or 8.34 percent; and Korean manufacturers spent $119 million, or 3.1 percent.
"Of the 'Big Six' automakers, only Honda and Toyota have higher incentives than they did this time last year," stated Jesse Toprak, Executive Director of Industry Analysis for Edmunds.com. "The competitiveness of the marketplace seems to be catching up with the Japanese heavyweights."
|True Cost of Incentives for the "Big Six" Automakers|
|Automaker||June 2007||May 2007||June 2006|
Among vehicle segments, minivans had the highest average incentives, $3,900 per vehicle sold, followed by large trucks at $3,864. Sport cars had the lowest average incentives per vehicle sold, $1,038, followed by compact cars at $1,047. Analysis of incentives expenditures as a percentage of average sticker price for each segment shows minivans averaged the highest, 13.8 percent, followed by large cars at 13.2 percent of sticker price. Sport cars averaged the lowest, 3.6 percent, followed by luxury sports cars at 3.8 percent of sticker price.
"The flood of popular crossovers is taking its toll on the minivan segment — minivan incentives are at near record levels," commented Edmunds' AutoObserver.com Senior Editor Michelle Krebs. "It will be interesting to see how the minivan story plays out, with Ford and GM getting out of the market and Chrysler on the eve of introducing its new models."
Comparing all brands, in June Mini spent the least, virtually nothing, followed by Scion at $68 per vehicle sold. At the other end of the spectrum, Cadillac spent the most, $7,682, followed by Lincoln at $5,430 per vehicle sold. Relative to their vehicle prices, Cadillac and Saab spent the most, 16.7 percent and 16.1 percent of sticker price, respectively, while Mini spent essentially nothing and Scion spent just 0.4 percent.
About Edmunds Inc. (http://www.edmunds.com/about/)
Edmunds Inc. publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive consumer information, launched in 1995 as the first automotive information Web site. Its most popular feature, the Edmunds.com True Market Value®, is relied upon by millions of people seeking current transaction prices for new and used vehicles. Edmunds.com was named "Best Car Research Site" by Forbes ASAP, has been selected by consumers as the "Most Useful Web Site" according to every J.D. Power and Associates New Autoshopper.com Study(SM), was ranked first in the Survey of Car-Shopping Web Sites by The Wall Street Journal and was rated "#1" in Keynote's study of third-party automotive Web sites. Inside Line launched in 2005 and is the most-read automotive enthusiast Web site. CarSpace launched in 2006 and is an automotive social networking Web site. AutoObserver.com launched in 2007 and provides insightful automotive industry commentary and analysis. Edmunds Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit.