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Automotive Discounts Lead to the Longest Period of Gains in the Past Ten Years

1 June 2010 | Posted by: Alex M | File Under: Automotive | | No Comment

Ford - HondaNissan, Honda, and Ford all offered rebates and discounts on their cars over the Memorial Day weekend. This has lead to what analysts are calling the longest period of sales gains in nearly ten years.

Across the entire automotive industry, deliveries reached around 11.2 million light vehicles in the month of May. This number is a seasonally adjusted annual rate, and it was created from a number of estimates by different analysts. The estimates were compiled by Bloomberg.

Last year’s rate was recorded at 9.9 million. If May’s rate did actually reach 11.2 million, this would signify eight months of gains. According to Bloomberg Data, this is the first time this has occurred since June of 2000.

An analyst at Edmunds.com reports that for the past three years, the sales during the Memorial Day weekend have been higher than normal May weekends.

During the weekend, Nissan created a $500 discount for some of their vehicles. Honda also has some discounts that will run through the end of this week.

Ford initiated a number of $500 rebates for some of their vehicles, like the Focus and the Edge. They also included some of the Lincoln sedans and SUV’s, according to a Ford spokesperson, Robert Parker.

All three automakers have seen an increase in sales, though the exact percentage increased as compared to last May will have to wait for a confirmation of the past month’s sales. Increases vary from around 10 to 30%.

Both General Motors (GM) and Chrysler were in bankruptcy at this time last year, but they might have seen sales increases as well. GM may have seen an increase of around 6%, and Chrysler might have seen an increase around 20%.

Toyota did not have any sales incentives over the weekend, but Edmunds.com thinks that it still might have seen an increase of around 8%.

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