`Commoditized' cars a real fear; Category killer: Regional and national deals taketoll on bid to build value.(Special Report: Power Players)(a discussion of the incentive deals offered by the auto industry in 2003)

Advertising Age, October, 2003

Byline: JEAN HALLIDAY

The year 2003 has been the year of the deal in the auto industry.

Deals, or incentives, aren't new, but they've been creeping up annually for the past few years. Consider this: The industry's average incentive per vehicle rose to $5,613 last August vs. $4,931 in August 2002, according to consultancy CNW Marketing/Research. In the first quarter of 2000, the average incentive was $1,717, CNW says.

The use of customer cash in new-vehicle transactions also has risen since at least 2000. Customer cash rebates increased from nearly 33% of all closings in 2000 to 53.3% of purchases this year through Sept. 21, according to consultancy J.D. Power & Associates.

Detroit's carmakers and the weaker second- and third-tier...

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