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ALG finds Automakers Poised to Reach $53 Billion in Revenue in March

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ALG finds Automakers Poised to Reach $53 Billion in Revenue in March

Average transaction prices likely to rise 1.0 percent

PR Newswire

SANTA MONICA, Calif., April 3, 2018 /PRNewswire/ -- ALG, the industry benchmark for determining the future resale value of a vehicle, projects U.S. revenue from new vehicle sales will reach $53 billion for the month of March, up 3.6 percent from a year ago.

 (PRNewsfoto/ALG)

ALG expects a gain of $1.8 billion in revenue for automakers versus 2017. Additionally, incentive spending is projected to increase 8.0 percent year over year and 0.6 percent month over month.

"The combination of harsh weather, stock market volatility and the Easter holiday weekend falling on the last weekend of the month stalled the usual uptick in Spring sales and led to a slight decline in year over year sales on a daily sales rate adjusted basis," said Eric Lyman, ALG's chief industry analyst. "Overall movements in incentives and ATPs remain small for March which resulted in a largely consistent level compared to last month."

ALG estimates ATP for a new light vehicle was $33,095 in March, up 1.0 percent from a year ago. Average incentive spending per unit grew by $278 to $3,750. The ratio of incentive spending to ATP is expected to be 11.3 percent, up 6.9 percent from a year ago.

Average Transaction Price (ATP)


Manufacturer

Mar. 2018 Forecast

Mar. 2017

Feb. 2018

YOY

MOM

BMW (BMW, Mini)

$52,210

$51,020

$52,224

2.3%

0.0%

Daimler (Mercedes-Benz, Smart)

$60,879

$59,437

$61,234

2.4%

-0.6%

FCA (Chrysler, Dodge, Jeep, Ram, Fiat)

$34,240

$33,079

$34,213

3.5%

0.1%

Ford (Ford, Lincoln)

$37,197

$36,014

$37,030

3.3%

0.4%

GM (Buick, Cadillac, Chevrolet, GMC)

$34,912

$36,277

$36,157

-3.8%

-3.4%

Honda (Acura, Honda)

$27,784

$27,392

$27,976

1.4%

-0.7%

Hyundai

$22,581

$22,847

$22,801

-1.2%

-1.0%

Kia

$23,033

$22,743

$23,106

1.3%

-0.3%

Nissan (Nissan, Infiniti)

$27,438

$27,565

$27,718

-0.5%

-1.0%

Subaru

$27,877

$27,872

$27,904

0.0%

-0.1%

Toyota (Lexus, Scion, Toyota)

$32,085

$31,562

$31,963

1.7%

0.4%

Volkswagen (Audi, Porsche, Volkswagen)

$35,574

$33,677

$35,406

5.6%

0.5%

Industry

$33,095

$32,754

$33,431

1.0%

-1.0%

 

Incentive per Unit Spending


Manufacturer

Mar. 2018 Forecast

Mar. 2017

Feb. 2018

YOY

MOM

BMW (BMW, Mini)

$5,324

$4,500

$5,318

18.3%

0.1%

Daimler (Mercedes-Benz, Smart)

$4,997

$4,415

$5,230

13.2%

-4.5%

FCA (Chrysler, Dodge, Jeep, Ram, Fiat)

$4,424

$4,251

$4,334

4.1%

2.1%

Ford (Ford, Lincoln)

$4,150

$4,093

$4,182

1.4%

-0.8%

GM (Buick, Cadillac, Chevrolet, GMC)

$5,082

$4,526

$5,193

12.3%

-2.1%

Honda (Acura, Honda)

$1,884

$2,159

$1,762

-12.7%

6.9%

Hyundai

$2,760

$2,172

$2,751

27.1%

0.3%

Kia

$3,886

$3,383

$3,851

14.9%

0.9%

Nissan (Nissan, Infiniti)

$4,206

$3,976

$4,104

5.8%

2.5%

Subaru

$1,390

$896

$1,351

55.1%

2.9%

Toyota (Lexus, Scion, Toyota)

$2,510

$2,154

$2,585

16.5%

-2.9%

Volkswagen (Audi, Porsche, Volkswagen)

$3,681

$3,474

$3,698

5.9%

-0.5%

Industry

$3,750

$3,472

$3,727

8.0%

0.6%

 

Incentive Spending as a Percentage of ATP


Manufacturer

Mar. 2018 Forecast

Mar. 2017

Feb. 2018

YOY

MOM

BMW (BMW, Mini)

10.2%

8.8%

10.2%

15.6%

0.1%

Daimler (Mercedes-Benz, Smart)

8.2%

7.4%

8.5%

10.5%

-3.9%

FCA (Chrysler, Dodge, Jeep, Ram, Fiat)

12.9%

12.9%

12.7%

0.5%

2.0%

Ford (Ford, Lincoln)

11.2%

11.4%

11.3%

-1.8%

-1.2%

GM (Buick, Cadillac, Chevrolet, GMC)

14.6%

12.5%

14.4%

16.7%

1.4%

Honda (Acura, Honda)

6.8%

7.9%

6.3%

-14.0%

7.7%

Hyundai

12.2%

9.5%

12.1%

28.6%

1.3%

Kia

16.9%

14.9%

16.7%

13.5%

1.2%

Nissan (Nissan, Infiniti)

15.3%

14.4%

14.8%

6.3%

3.5%

Subaru

5.0%

3.2%

4.8%

55.1%

3.0%

Toyota (Lexus, Scion, Toyota)

7.8%

6.8%

8.1%

14.6%

-3.3%

Volkswagen (Audi, Porsche, Volkswagen)

10.3%

10.3%

10.4%

0.3%

-0.9%

Industry

11.3%

10.6%

11.1%

6.9%

1.6%


(Note: This forecast is based solely on ALG's analysis of industry sales trends and conditions and is not a projection of the company's operations.)

About ALG
Founded in 1964 and headquartered in Santa Monica, California, ALG is an industry authority on automotive residual value projections in both the United States and Canada. By analyzing nearly 2,500 vehicle trims each year to assess residual value, ALG provides auto industry and financial services clients with market industry insights, residual value forecasts, consulting and vehicle portfolio management and risk services. ALG is a wholly-owned subsidiary of TrueCar, Inc., a digital automotive marketplace that provides comprehensive pricing transparency about what other people paid for their cars. ALG has been publishing residual values for all cars, trucks and SUVs in the U.S. for over 50 years and in Canada since 1981.

Contact
pressinquiries@truecar.com
Veronica Cardenas
424-258-8427
VCardenas@truecar.com

 

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SOURCE ALG

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