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ALG finds Automakers Poised to Reach $45 Billion in Revenue in April

Average transaction prices likely to rise 2.7 percent

SANTA MONICA, Calif., (May 1, 2018) - ALG, the industry benchmark for determining the future resale value of a vehicle, projects U.S. revenue from new vehicle sales will reach $45 billion for the month of April, down 3.8 percent from a year ago with currently 24 selling days compared to 26 in April 2017.

ALG expects a loss of $1.7 billion in revenue for automakers versus 2017. Additionally, incentive spending is projected to increase 8.5 percent year over year and decrease 1.6 percent month over month.

"Cooling incentives on a month over month basis and the continued rise in Average Transaction Prices are putting the auto industry on track for another year of solid performance metrics," said Eric Lyman, ALG's chief industry analyst. "Automakers are becoming increasingly dependent on light trucks, as evidenced by Ford's recent announcement to pull all but two passenger cars from their lineup, which bolsters revenue and ATPs across the industry. Additionally, the impact of higher interest rates and economic volatility have not negatively impacted robust ATPs."

ALG estimates ATP for a new light vehicle was $33,515 in April, up 2.7 percent from a year ago. Average incentive spending per unit grew by $293 to $3,736. The ratio of incentive spending to ATP is expected to be 11.1 percent, up from 10.5 percent from a year ago.

Average Transaction Price (ATP)

Manufacturer Apr. 2018 Forecast Apr. 2017 Mar. 2018 YOY MOM
BMW (BMW, Mini) $52,576 $52,103 $52,147 0.9% 0.8%
Daimler (Mercedes-Benz, Smart) $61,650 $61,679 $61,582 0.0% 0.1%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat) $34,281 $32,931 $33,957 4.1% 1.0%
Ford (Ford, Lincoln) $37,032 $35,751 $37,149 3.6% -0.3%
GM (Buick, Cadillac, Chevrolet, GMC) $36,254 $36,571 $34,976 -0.9% 3.7%
Honda (Acura, Honda) $27,745 $27,182 $27,857 2.1% -0.4%
Hyundai $22,442 $22,545 $22,571 -0.5% -0.6%
Kia $22,931 $22,699 $22,999 1.0% -0.3%
Nissan (Nissan, Infiniti) $27,256 $27,359 $27,634 -0.4% -1.4%
Subaru $27,814 $27,764 $27,921 0.2% -0.4%
Toyota (Lexus, Scion, Toyota) $32,107 $31,064 $32,119 3.4% 0.0%
Volkswagen (Audi, Porsche, Volkswagen) $36,570 $34,187 $35,888 7.0% 1.9%
Industry $33,515 $32,638 $33,207 2.7% 0.9%

Incentive per Unit Spending

Manufacturer Apr. 2018 Forecast Apr. 2017 Mar. 2018 YOY MOM
BMW (BMW, Mini) $5,484 $4,424 $5,595 23.9% -2.0%
Daimler (Mercedes-Benz, Smart) $4,691 $4,557 $4,775 2.9% -1.8%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat) $4,685 $4,359 $4,579 7.5% 2.3%
Ford (Ford, Lincoln) $4,183 $4,114 $4,167 1.7% 0.4%
GM (Buick, Cadillac, Chevrolet, GMC) $5,489 $4,238 $5,667 29.5% -3.1%
Honda (Acura, Honda) $1,652 $1,809 $1,556 -8.7% 6.1%
Hyundai $2,961 $3,135 $2,875 -5.5% 3.0%
Kia $3,894 $3,247 $3,858 19.9% 0.9%
Nissan (Nissan, Infiniti) $3,788 $3,903 $3,772 -2.9% 0.4%
Subaru $1,172 $957 $1,199 22.4% -2.3%
Toyota (Lexus, Scion, Toyota) $2,291 $2,346 $2,347 -2.4% -2.4%
Volkswagen (Audi, Porsche, Volkswagen) $3,537 $4,008 $3,618 -11.7% -2.2%
Industry $3,736 $3,443 $3,795 8.5% -1.6%

Incentive Spending as a Percentage of ATP

Manufacturer Apr. 2018 Forecast Apr. 2017 Mar. 2018 YOY MOM
BMW (BMW, Mini) 10.4% 8.5% 10.7% 22.8% -2.8%
Daimler (Mercedes-Benz, Smart) 7.6% 7.4% 7.8% 3.0% -1.9%
FCA (Chrysler, Dodge, Jeep, Ram, Fiat) 13.7% 13.2% 13.5% 3.2% 1.4%
Ford (Ford, Lincoln) 11.3% 11.5% 11.2% -1.8% 0.7%
GM (Buick, Cadillac, Chevrolet, GMC) 15.1% 11.6% 16.2% 30.7% -6.5%
Honda (Acura, Honda) 6.0% 6.7% 5.6% -10.5% 6.6%
Hyundai 13.2% 13.9% 12.7% -5.1% 3.6%
Kia 17.0% 14.3% 16.8% 18.7% 1.2%
Nissan (Nissan, Infiniti) 13.9% 14.3% 13.7% -2.6% 1.8%
Subaru 4.2% 3.4% 4.3% 22.2% -1.9%
Toyota (Lexus, Scion, Toyota) 7.1% 7.6% 7.3% -5.5% -2.3%
Volkswagen (Audi, Porsche, Volkswagen) 9.7% 11.7% 10.1% -17.5% -4.1%
Industry 11.1% 10.5% 11.4% 5.7% -2.5%

(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.)