Automakers Offer Massive Rebates to Move Surplus of SUVs
- Rebates rise, pricing deteriorates as competitors pile in
- U.S. inventory bloat also putting pressure on slowing segment
A Chevrolet Suburban sports utility vehicle (SUV) waits to be driven off the production line at the General Motors Co. (GM) assembly plant in Arlington, Texas, on March 10, 2016.
Photographer: Matthew Busch/BloombergThis article is for subscribers only.
Sport utility vehicles, overtaking sedans as the new American family car, have been so hot that automakers raced to supply the market. With inventory now piling up, profit-sapping rebates are on the rise.
Incentives on SUVs rose $704 from a year earlier to $3,663 last month, according to J.D. Power dealer data obtained by Bloomberg. That average was up 24 percent, compared with the 13 percent rise for the total market, per the Power Information Network data, which isn’t released publicly.