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Chrysler cuts incentives, sells more

by David Zatz on

For the month of December, according to TrueCar (as quoted by Automotive News), Chrysler dropped incentives by 9% — but sales rose by 6%. Chrysler’s average revenue per car rose by 3%.

Ford, meanwhile, bought higher sales at the cost of a 22% incentive hike — an average of $600 per vehicle. Ford blamed a large number of unsold F-series pickups from past model years.

Hyundai-Kia and Honda both raised incentives by double digits as well, with Hyundai-Kia slapping down 18% more and Honda raising incentives by 15%.  GM’s incentives rose by only 4%, resulting in a 6% cut in sales, though the average price paid per car rose slightly.

Chrysler has been following an apparent strategy of increasing profits while slowly raising sales volumes since 2009, when the company started relaunching its “re-contented” cars and trucks. In addition to slowly reducing incentives, such as rebates, Chrysler has been pulling back on fleet sales as retail sales rose.

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304


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