Edmunds.com: Automaker Spending Flat Despite -- and Perhaps Contributing to -- Soft Sales

SANTA MONICA, Calif. — December 3, 2007 — Edmunds.com estimated today that the average automotive manufacturer incentive in the U.S. was $2,309 per vehicle sold in November 2007, up $135, or 6.2 percent, from October 2007, and up $21, or 0.9 percent, from November 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 $3,188 per vehicle sold in November 2007, up from $3,104 in October 2007. From October to November, European automakers increased incentives spending by $442 to $2,415 per vehicle sold; Japanese automakers increased incentives spending by $147 to $1,162 per vehicle sold; and Korean automakers increased incentives spending by $484 to $2,017 per vehicle sold.

In November, the industry's aggregate incentive spending is estimated to have totaled approximately $2.77 billion, up 3.75 percent from October. Chrysler, Ford and General Motors spent an aggregate of $1.89 billion, or 68.5 percent of the total; Japanese manufacturers spent $527 million, or 19.1 percent; European manufacturers spent $235 million, or 8.5 percent; and Korean manufacturers spent $108 million, or 3.9 percent.

Source: Edmunds.com

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