WESTLAKE VILLAGE, Calif. -- New-vehicle retail sales were down 11 percent through the first 15 days of January when compared to the same time period a year ago, according to the Power Information Network (PIN).

GM and Ford retail sales declined when compared to early January 2005 with GM down 28 percent and Ford down 25 percent in the first 15 days of January. DaimlerChrysler was also down 13 percent when compared to the same period in 2005. Among the nine multi-franchise new-vehicle manufacturers, Hyundai and Toyota have had the best retail performance thus far in January. Retail sales for Hyundai were up 19 percent and Toyota Motor retail sales were up 9 percent compared to the first half of January 2005.

In addition to the retail sales increase, Toyota had the highest retail share in the industry for the first 15 days of the month — up 3.4 points versus a year ago to 18.8 percent. The domestic manufacturers follow Toyota with GM at 17.5 percent (down 4.2 points versus a year ago) and Ford Motor Company at 14.7 percent (down 2.8 points). DaimlerChrysler also saw a decline in the first 15 days of January to 12.8 percent (down 0.3 points). In contrast, American Honda, Nissan and Hyundai have all increased market share versus a year ago, with American Honda at 12.3 percent (up 1.4 points), Nissan at 8.6 percent (up 0.7 point) and Hyundai at 5.7 percent (up 1.4 points).

“The trends haven’t changed very much — the domestics continue to slip while the Asians gain ground,” said Tom Libby, senior director of industry analysis at PIN. “To combat this trend, GM, for one, is counting on its aggressive price reductions, which just went into effect on the 11th.”

One reason for the overall retail sales decline in the new-vehicle market is that the manufacturers have reduced their incentive offerings. Through the first 15 days of January, the average incentive expenditure per unit was $2,089—down 16 percent versus a year ago. Incentives were down 20 percent at General Motors, 12 percent at DaimlerChrysler and 2 percent at Ford Motor Company. Incentives through the first 15 days of January were also lower at the segment level versus a year ago. For example, incentives for sporty, full-size, midsize and compact car categories were all down 40 percent or more versus a year ago, while only SUV incentives were up.

Despite the reduction in incentives, dealer inventories remain reasonable. On average, new vehicles that were sold in the first 15 days of January had been sitting on dealer lots for 59 days—down eight days versus vehicles sold in the same time period a year ago. It is considered normal when the average days to turn is in the range of 50 to 60 days.