By on March 20, 2010

Lavish cash on the hood of Japanese cars may help their U.S. sales (or soften the fall in Toyota’s case). The largess also “will put pressure on earnings,” says The Nikkei [sub].

Toyota, Nissan, Honda raised sales incentives in February to an average of 2,221 dollars per vehicle, up 11 percent from January.

Honda was doling out incentives of more than $1,800 in February, a 27 percent jump from January. Toyota offers $1,800 per vehicle in sales sweeteners, the most since December 2008.

The Nikkei can’t help noting that the Detroit Three have been cutting incentives since the second half of last year, “led by Ford Motor Co., which has seen a rapid rebound in sales.”

Subliminal message: Higher sales, smaller discounts, bigger profit. Wakarimashita ka?

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6 Comments on “Japanese Auto Makers: Let’s Make A Deal!...”


  • avatar
    Telegraph Road

    Considering that Toyota is being hit with class action lawsuits from Toyota owners upset about declining resale values, putting more cash on the hood may not be a good idea.

  • avatar
    mdensch

    For Toyota, I see a bit of irony here. Conventional wisdom holds that its current problems are the result of either growing too large or growing too fast and losing the tight control it used to be able to exert over the quality of its cars.

    Now, in the face of contracting sales, they are desperately trying to keep sales at those same high levels. What’s that popular aphorism about repeating the same action over and over but expecting different results?

    • 0 avatar
      wsn

      mdensch, conventional wisdom holds that its current problems are the result of government motors’ dirty play. What a good way to beat government motors at its own game of putting cash on the hoods!

  • avatar

    What’s that popular aphorism about repeating the same action over and over but expecting different results?

    It’s called “advertising.”

  • avatar

    Deeper rebates and incentives equals wounded resale value for existing customers, which pisses off those existing customers more, and hurts the total cost of ownership math.

    Oh Hyundai, your time has come.


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