Autofacts Reports First Dip in Record Rebates This Year
2 October 1997
Autofacts Reports First Dip in Record Rebates This Year
DETROIT, Oct. 2 -- Amid record-setting automotive rebates
again last month, Asian brands reduced cash incentives by almost 10 percent in
September compared with both August 1997 and September 1996, producing the
first reversal of an upward spending trend in nearly a year, according to The
Autofacts Group, a division of Coopers & Lybrand Consulting.
The last time Asian brand rebates declined year over year was in October
1996. Last month, average cash discounts available on Asian cars and trucks
dropped below levels offered by Big Three brand vehicles for the first time in
two years.
"Certain Asian brands are cutting incentives faster than others with
Toyota in a particular hurry to shut the incentives door," said Suzanne
Kinsler, managing associate at Autofacts. "Nissan, Mitsubishi and Mazda,
however, remain near the top of the cash incentive rankings, behind luxury
brands such as Lincoln, Cadillac, Saab and Jaguar," she said.
A slight increase in cash promotions -- up 3 percent month over month --
from the Big Three brands, specifically Plymouth and Eagle, Ford and Mercury,
and Chevrolet, held the industry average incentive at only slightly below --
about 1 percent -- August's record levels.
For the industry in total, September was another record month with an
average rebate 19 percent ahead of 1996. However, the rate of incentive
increase has cooled to a pace last seen in April, before the super-hot
escalation of the past summer.
Overall, cash incentives from the Chrysler Corp., Ford Motor (less
Lincoln), and Chevrolet/Geo were up significantly year over year. On the car
side of the market, sluggish sales have resulted in all-time record rebates.
Deals have become more lucrative this year on full-size and sports cars,
although amounts have started to level off.
Small-size car rebates are continuing to climb while, at the other
extreme, luxury cash deals are harder to find this year than last. For truck
buyers, full-size pickups and full- and mid-size vans have been more
aggressively discounted this year than last.
The Autofacts Group, a division of Coopers & Lybrand Consulting, is a
leading global automotive forecasting and planning company. It provides
automotive databases and reports, forecasts, competitive analyses, strategic
planning, market research, and systems and management consulting. Regional
coverage includes North America, South America, Western Europe, Eastern Europe
and Asia-Pacific.
One of the world's leading professional service firms, Coopers & Lybrand
L.L.P. provides globally integrated services for enterprises in a wide range
of industries. The firm offers its clients the expertise of more than 16,000
professionals and staff in offices in 100 U.S. cities, and through the member
firms of Coopers & Lybrand International, more than 74,000 people in 142
countries.
SOURCE Coopers & Lybrand L.L.P
