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Auto incentives fade, and so does urge to buy

DETROIT - U.S. car shoppers eased up on purchases in April as the lure of big incentives faded. Automakers will have to match incentives from Toyota Motor Corp. at least through Memorial Day. Toyota said Monday it would continue to offer zero-percent financing and two years of free maintenance on the Camry, Corolla and other vehicles through June 1. It's also offering deals on its Lexus luxury brand.

    by By Dee-Ann Durbin and Tom Krisher, Associated Press, Inquirer
    Published 

DETROIT - U.S. car shoppers eased up on purchases in April as the lure of big incentives faded.

Automakers will have to match incentives from Toyota Motor Corp. at least through Memorial Day. Toyota said Monday it would continue to offer zero-percent financing and two years of free maintenance on the Camry, Corolla and other vehicles through June 1. It's also offering deals on its Lexus luxury brand.

Industry sales for the month were up 20 percent over last April's dismal numbers and most major automakers had double-digit gains, according to AutoData Corp. But sales slipped 8 percent from March, when Toyota launched record-high incentives after its safety recalls.

Incentives continued in April but were 5 percent lower as automakers reined in spending on promotions.

Toyota's sales rose 24 percent for April but slowed 16 percent from March, a steeper decline than some others reported.

Ford Motor Co.'s April sales rose 25 percent. Ford said F-Series sales jumped 42 percent thanks to the new Super Duty truck. GM also reported an 8 percent jump in full-size pickup sales.

GM said sales climbed 6.4 percent. After taking out brands the automaker is phasing out or selling, GM sales rose 20 percent thanks to new products such as the Chevrolet Equinox and Buick LaCrosse. GM's four remaining brands are Chevrolet, Buick, GMC and Cadillac.

Automakers said they continue to see slow and steady recovery in the auto market.

Other sales results included:

Chrysler Group, which has struggled much of the year, reported a 25 percent sales increase led by a minivan promotion that drove sales up 68 percent. Ram pickup sales dropped 20 percent, however. Chrysler's sales bucked industry trends and rose 3 percent over March.

Honda's sales rose 12.5 percent over April of last year, while Nissan Motor Co.'s April sales rose 34 percent led by higher demand for the Rogue crossover and the newly released Cube hatchback.

Hyundai Motor Co.'s sales rose 30 percent thanks to the Sonata midsize sedan, while Kia Motors Corp.'s sales rose 17 percent on strong demand for its newly released Sorento crossover and Forte sedan.

Subaru's U.S. sales soared 48 percent. Its Outback small wagon doubled in sales from April of last year. Subaru of America Inc. is based in Cherry Hill.