Tag: Incentives

By on September 5, 2019

A flurry of new model additions benefitted many automakers with additional sales and greater revenue last month, and none more so than Fiat Chrysler, which saw its average U.S. transaction price rise 6.2 percent, year over year. Can you guess which segments pulled in the most extra money per vehicle? Bet you can.

At the other end of the yardstick, two foreign automakers basking in the glow of a very healthy sales month saw their average transaction prices fall. (Read More…)

By on August 28, 2019

2018 Ford EcoSport - Image: Ford

Lovers of low-rent vehicles bemoaned Ford’s decision to cull its small-car herd, shedding tears at the loss of the Fiesta and Focus, and no doubt choking back a few sobs at the impending loss of the midsize Fusion sedan. Finding a five-passenger vehicle priced below $20,000 is rapidly becoming a thing of the past, they cried.

Indeed, the supply of low-cost cars is shrinking, though Nissan seems to tuned in to the laments of penny-pinching shoppers. Over at Ford, the discontinuation of the Fiesta and Focus means the three-cylinder, front-drive EcoSport S — a subcompact Indian import we’ve, um, mentioned on this website in the past — is the only Blue Oval ride with an MSRP south of $20k, though adding a destination charge pole-vaults it over that threshold.

Before incentives, that is.
(Read More…)

By on August 6, 2019

Who’s talking about the C7 Corvette these days? Precious few, that’s who, as the recent appearance of the mid-engined C8 has sucked all the attention away from the current-generation Chevrolet two-seater.

This situation, paired with the need to clear existing inventory, could be advantageous for buyers of the departing model, assuming you’re ready to shell out nearly six figures for the hottest C7s around. (Read More…)

By on August 5, 2019

Tesla has resurrected its plan to provide free, unlimited access to its supercharger stations for the automaker’s customers. While the company frequently rejiggers its product offerings, this one still came out of left field. CEO Elon Musk called the plan unsustainable when the company officially eliminated it in 2018.

However, with the manufacturer seeing increasing sales volume from the Model 3, its premium models are falling by the wayside. Tesla reported 95,200 deliveries in the second quarter, the vast majority being the Model 3. While the company managed to generate $6.3 billion in revenue in the second quarter from those transactions, weaker Q1 volumes took a bite out of its share price and it still lost money through both periods. But it lost a couple hundred million less in Q2 thanks to the uptick in sales.  (Read More…)

By on July 30, 2019

We’re now in the seventh month of declining automotive sales in the United States. However, global sales haven’t fared any better. China posted its worst-ever monthly decline more than once this year with specific brands claiming as much as 70-percent slump in sales through the first half of 2019. Things are also going badly in Europe and have been for quite some time, with June playing host to some exceedingly bad metrics.

In fact, North America has had it comparatively good since its troubles hadn’t become truly persistent until the start of this year and the monthly dip rate has been been less severe. That does not, however, make the situation in the U.S. sunshine and roses. (Read More…)

By on June 11, 2019

2019 Chevrolet Bolt EV - Image: Chevrolet

If you’re stinking rich, few things stand in the way of any purchase. For plebs consumers of lesser means, pocketbook considerations factor much more heavily into all purchases. You author, by the way, feels pretty good about stockpiling discount meat in his freezer.

When it comes to electric vehicles, limited range and higher sticker prices serve as roadblocks to widespread consumer adoption, regardless of passionate lectures from politicians and online people. There’s progress being made on both issues, but spiffing new green rides remains a go-to method of stimulating sales. A pile of someone else’s cash on the hood goes a long way to sealing a deal.

In Canada, the U.S., and other developed nations, that EV cash comes from your friends and neighbors, not the manufacturer. And if Canadian data from May shows anything, it’s that the appearance of a modest rebate does little to get buyers in the mood to go green. Go big or go home? (Read More…)

By on June 4, 2019

2019 Ram 1500 eTorque

Running a car company is hard, in case you haven’t noticed. It gets even more difficult when various and sundry world events conspire to create a jittery public or wonky cost structures. Toss in a pinch of interest rate paranoia and you’ve the perfect recipe for a very challenging industry.

Last month, sales of light vehicles in America was roughly flat compared to the same time period one year ago. This would normally not be cause for much celebration but, against a backdrop of a disastrous April, it is almost worth breaking out a case of the good stuff.

(Read More…)

By on May 28, 2019

2018 Accord Sport 2.0-Liter Turbo - Image: Honda

May isn’t shaping up to be a sales winner for automakers doing business in the United States. Like past months in the current calendar, volume is predicted to decline, year over year, with the annual tally for 2019 expected to fall for the first time in years.

That’s according to a joint report from LMC Automotive and J.D. Power. Backing up the claims is a reversal of the recent trend of declining incentive spending, plus the fact that new cars are spending an increasing number of days sitting on lots. The most since the recession, in fact. (Read More…)

By on May 22, 2019

Image: FCA

Detroit City Council wrapped up a lengthy day of voting and approvals Tuesday, paving the way for a $2.5 billion Fiat Chrysler investment in two east-side assembly plants.

Part of the deal involves a complex series of land swaps benefitting both FCA and the land-rich Moroun family, plus a raft of tax incentives bound for the automaker. It’s a good thing FCA didn’t target its investment at New York City. (Read More…)

By on May 9, 2019

Image: Nissan

Pick your jaw up off the floor. As automakers struggle to offer electric vehicles deemed “affordable” by the motoring public, those buyers aren’t exactly swamping dealers with requests for EVs.

Even in the Europe Union, members of which punish drivers of fossil fuel-powered vehicles with high taxes, EVs amounted to just 2 percent of new vehicles registered last year. And yet the EU plans to drastically cut down on greenhouse gas emissions in the coming years.

New data from the European Automobile Manufacturers’ Association (ACEA) shows that the EU’s green dreams will be hard to realize without some sort of massive incentive for the purchase of electric vehicles, as right now those vehicles are only marginally popular in extremely wealthy countries. The EV “people’s car” is still a dream. (Read More…)

By on May 8, 2019

Image: Tim Healey/TTAC

You may have read a first drive review of Volkswagen’s new flagship, the Arteon, earlier today, but you probably didn’t know the automaker is already offering discounts on the liftback sedan.

We’ve spoken of the difficulties VW faces in launching a large car in a crossover-hungry market; the addition of available all-wheel drive and a carefully disguised rear hatch doesn’t take away from the fact the Arteon is *not* an Atlas. Maybe a dealer cash incentive will help move this unfamiliar metal. (Read More…)

By on May 1, 2019

Tesla Model 3, Image: Tesla

Forgive this writer for channeling Jonathan Pryce. Brush up on your secret handshake, too, as Tesla has a new version of the Model 3 customers can’t order online.

It’s a model that stands to become even more of a ghost than the U.S.-market Model 3 Standard Range, which disappeared from the company’s website after being on sale just a few days. American customers don’t apply here, as this cynical model’s sole purpose is to undercut a government EV incentive program’s price cutoff by a single dollar. A dollar, it should be said, that’s worth about 75 U.S. cents.

Who’s excited about 93 miles of range? (Read More…)

By on April 16, 2019

All-new 2018 Jeep® Wrangler Rubicon

Studies have shown that purchasing a new Jeep Wrangler is almost as stable an investment as buying gold. In terms of retaining value, the Wrangler is king, boasting a rate of depreciation that undercuts the industry average by half.

With this in mind, it’s not common to see people shopping around, sniffing out boffo bargains on hard-to-sell Wranglers polluting local dealer lots. It simply isn’t a thing. If you’re in the market for one, however, now may be a good time to start searching. (Read More…)

By on April 8, 2019

U.S. light-vehicle dealers reported an operating loss for the first time since the National Automobile Dealers Association (NADA) began collecting data in 2009. While everyone continues reporting pretax net profits, concerns are beginning to swell around their dependency on factory incentives, which are not included in operating tabulations.

NADA’s analysis of 2019’s first-quarter auto sales shows that incentive spending is down compared to the same period a year ago. The group expects above-average discipline from automakers in terms of incentive spending throughout the year. According to J.D. Power, average incentive spending per unit was down $119 to $3,821 through March 2019 — with the brunt of that going toward trucks. However, if sales remain low, spending may creep back up to help clear out languishing inventories.  (Read More…)

By on April 4, 2019

A piece you’ll see later this morning may have something to do with today’s topic. We’re talking handouts, incentives, rebates, discounts, credits — anything that can ease the financial burden of buying a new vehicle.

Specifically, that class of vehicle few people want to buy (and frankly, a class of vehicle more than a few people would rather not read about): Electric cars.

As Tesla and GM buyers face a once-juicy tax credit that’s now pared in half, and as other automakers stare down the barrel of a reduced federal incentive, we have to ask: what would it take, price-wise, to get you into one of them? (Read More…)

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