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Chrysler chopped incentive spending in May

by Bill Cawthon on

In May, Chrysler reduced customer incentives by $986 per vehicle compared to the same month last year. It also trimmed $223 from its April spending. The company spent an average of $3,115 on each sale compared to $4,101 in May 2009 and $3,338 in April of this year.

Reduced incentives were generally the story across the board although Ford and Nissan did announce beefed-up, late month programs. According to, Ford trimmed its spending by $569 to $3,042, the lowest of the Detroit automakers, while Honda cut $97 from its May 2009 payouts and $229 from its April 2010 incentives. Nissan cut $357 from its May 2009 offers, coming in at $2,321, the highest of the Asian automakers. Nissan also cut $153 from its April incentives

Hyundai made the biggest cut, dropping to $1,738, $1,047 less than its May 2009 deal sweeteners and $29 less than it paid out in April.

Toyota bucked the trend, spending $458 more than it did last year, but it did cut $160 compared to what it spent in April.

General Motors, trying to build retail sales, added $68 to its May 2009 package and a whopping $438 to its April incentives to become May’s big spender with average incentives of $3,739 per vehicle.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.

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