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Toyota (TM) and GM (GM): May Car Sales And The Price Of Incentives

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By Douglas A. McIntyre Published
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The headlines were about unit sales. The critical issue was incentives.

GM’s (GM) May vehicles sales in the US rose almost 10% to over 371,000. The company showed increases in cars and light truck. Although it was unexpected with fuel costs high, pick-up sales did well.

Toyota’s (TM) sales were up 14% to 269,000, with one of the drivers being hybrid.

Ford (F) sales fell 7% to to 259,000. Sales of passenger cars fell. Pick-up sales were flat. The silver lining was sales of crossovers such as the Ford Edge and Lincoln MKX rose 67% from a year ago

Chrysler sales rose a modest 4%.

Increased customer incentives may have provided some of the boost. Incentives for Toyotas moved to $1,140 from $886 last May, according to Edmunds. Incentives on Chryslers moved to $4,050 from $3,668. GM’s incentives were up to $2,963 from $2.761. Only Ford dropped incentives from $3,209 to $3,040.

So, Ford dropped incentives and its sales fell. The opposite happened for the other car companies. And, Toyota is increasing incentives. Perhaps the sales number are not just based on raw demand.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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