Dodge Ram's Market Share boosted by Incentives

Tom Ludwick
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While Ford might have grabbed a large portion of the market late last year with the introduction of the redesigned 2009 F-150, the Dodge Ram is coming up fast. The new Ram's share of the market grew to 13.4 percent in February from only 8.2 percent in December, but are Chrysler's incentives the only reason for the new truck's success?

According to Edmunds.com, the average incentive on a Dodge Ram 1500 was $6,730 last month. It seems that Chrysler's strategy to get through the recession has become "spend more to generate revenue." Further proof lies in Chrysler's average incentive of $5,500 for each vehicle sold in February.

Ford, on the other hand, is doing the opposite. It is reducing its incentives in the interest of preserving the profit margin of its most essential product. Ford's incentives on the F-150 were down $1,000 in February, but still averaged a $3,704 discount per truck. George Pipas, Ford's sales analyst said "We are running our business for the future, not for February market share."

The Ford F-150 still managed to gain more of the market last month with its share rising to 22.3 percent from 21.4 percent in January. Meanwhile the Chevy Silverado and Toyota Tundra lost ground. The Silverado dropped from 23.4 percent to 21.4 percent and the Tundra fell from 8.9 percent to 8.0 percent.

Edmunds.com said the Ram's rivals were overcome by Dodge's jump in incentive spending. However, a Chrysler official claims the Edmunds calculations don't account other incentives like wholesale incentives offered to dealers for ordering more stock. Supposedly, if those numbers were included, the average from General Motors and Ford would be much higher.

Source: Automotive News

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