ALG Projects Automakers to Reach $50 Billion in Revenue in August
SANTA MONICA, Calif., Sept. 4, 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 $50 billion for the month of August, up 3.1 percent from a year ago.
ALG expects a gain of $1.5 billion in revenue for automakers. Additionally, incentive spending is projected to increase 0.7 percent year over year.
"Automakers are still deciphering a complex sales environment in 2018, where softer retail demand is being offset by continued increases in Average Transaction Prices (ATP) resulting in overall revenue growth," said Eric Lyman, ALG's Chief Analyst. "Luxury automakers, Daimler and BMW, are showing year over year declines in ATP with higher incentives, despite a resilient economy that would typically buoy premium brands. On the mainstream side, FCA continues to ride a wave of successful launches by Jeep and Ram to hit a trifecta of sales and ATP growth while reducing incentives."
ALG estimates ATP for a new light vehicle was $33,179 in August, up 1.7 percent from a year ago. Average incentive spending per unit grew by $26 to $3,757. The ratio of incentive spending to ATP is expected to be 11.3 percent, down from 11.4 percent a year ago.
Average Transaction Price (ATP)
Manufacturer August 2018 August 2017 July 2018 YOY MOM
Forecast
--- --------
BMW (BMW, $51,198 $51,578 $51,426 -0.7% -0.4%
Mini)
----
Daimler $56,953 $58,355 $56,267 -2.4% 1.2%
(Mercedes-
Benz,
Smart)
-----
FCA
(Chrysler, $34,576 $33,525 $34,405 3.1% 0.5%
Dodge, Jeep,
Ram, Fiat)
---------
Ford (Ford, $37,137 $35,652 $36,608 4.2% 1.4%
Lincoln)
-------
GM (Buick, $36,764 $36,068 $36,415 1.9% 1.0%
Cadillac,
Chevrolet,
GMC)
----------
Honda
(Acura, $28,457 $27,130 $28,085 4.9% 1.3%
Honda)
-----
Hyundai $22,184 $22,947 $22,142 -3.3% 0.2%
------- ------- ------- ------- ---- ---
Kia $22,733 $22,043 $22,540 3.1% 0.9%
--- ------- ------- ------- --- ---
Nissan
(Nissan, $27,052 $27,730 $27,586 -2.4% -1.9%
Infiniti)
--------
Subaru $28,519 $27,991 $28,516 1.9% 0.0%
------ ------- ------- ------- --- ---
Toyota
(Lexus, $31,586 $30,694 $31,659 2.9% -0.2%
Scion,
Toyota)
-------
Volkswagen $35,213 $34,754 $35,040 1.3% 0.5%
(Audi,
Porsche,
Volkswagen)
----------
Industry $33,179 $32,630 $32,923 1.7% 0.8%
-------- ------- ------- ------- --- ---
Incentive per Unit Spending
Manufacturer August 2018 August July 2018 YOY MOM
Forecast 2017
--- -------- ----
BMW (BMW, Mini) $5,679 $4,793 $5,812 18.5% -2.3%
-------------- ------ ------ ------ ---- ----
Daimler $4,915 $4,591 $5,267 7.1% -6.7%
(Mercedes-Benz,
Smart)
-----
FCA (Chrysler, $4,425 $4,447 $4,462 -0.5% -0.8%
Dodge, Jeep,
Ram, Fiat)
---------
Ford (Ford, $4,649 $4,298 $4,629 8.2% 0.4%
Lincoln)
-------
GM (Buick, $4,820 $4,948 $4,943 -2.6% -2.5%
Cadillac,
Chevrolet, GMC)
--------------
Honda (Acura, $2,064 $1,972 $1,935 4.7% 6.7%
Honda)
-----
Hyundai $2,945 $2,787 $2,946 5.7% 0.0%
------- ------ ------ ------ --- ---
Kia $4,347 $3,768 $4,313 15.4% 0.8%
--- ------ ------ ------ ---- ---
Nissan (Nissan, $3,967 $4,442 $4,068 -10.7% -2.5%
Infiniti)
--------
Subaru $1,600 $1,026 $1,621 55.9% -1.3%
------ ------ ------ ------ ---- ----
Toyota (Lexus, $2,600 $2,865 $2,633 -9.3% -1.3%
Scion, Toyota)
-------------
Volkswagen (Audi, $3,750 $3,745 $3,862 0.2% -2.9%
Porsche,
Volkswagen)
----------
Industry $3,757 $3,731 $3,779 0.7% -0.6%
-------- ------ ------ ------ --- ----
Incentive Spending as a Percentage of ATP
Manufacturer August August July 2018 YOY MOM
2018 2017
Forecast
--- --------
BMW (BMW, Mini) 11.1% 9.3% 11.3% 19.4% -1.8%
-------------- ---- --- ---- ---- ----
Daimler (Mercedes- 8.6% 7.9% 9.4% 9.7% -7.8%
Benz, Smart)
-----------
FCA (Chrysler, 12.8% 13.3% 13.0% -3.5% -1.3%
Dodge, Jeep, Ram,
Fiat)
----
Ford (Ford,
Lincoln) 12.5% 12.1% 12.6% 3.9% -1.0%
----------- ---- ---- ---- --- ----
GM (Buick,
Cadillac, 13.1% 13.7% 13.6% -4.4% -3.4%
Chevrolet, GMC)
--------------
Honda (Acura, 7.3% 7.3% 6.9% -0.2% 5.3%
Honda)
-----
Hyundai 13.3% 12.1% 13.3% 9.3% -0.2%
------- ---- ---- ---- --- ----
Kia 19.1% 17.1% 19.1% 11.9% -0.1%
--- ---- ---- ---- ---- ----
Nissan (Nissan, 14.7% 16.0% 14.7% -8.4% -0.5%
Infiniti)
--------
Subaru 5.6% 3.7% 5.7% 53.1% -1.3%
------ --- --- --- ---- ----
Toyota (Lexus, 8.2% 9.3% 8.3% -11.8% -1.0%
Scion, Toyota)
-------------
Volkswagen (Audi, 10.7% 10.8% 11.0% -1.1% -3.4%
Porsche,
Volkswagen)
----------
Industry 11.3% 11.4% 11.5% -1.0% -1.3%
-------- ---- ---- ---- ---- ----
(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
View original content with multimedia:http://www.prnewswire.com/news-releases/alg-projects-automakers-to-reach-50-billion-in-revenue-in-august-300706013.html
SOURCE ALG
