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?