Japan's automakers offer incentives to boost US sales
Monday 04 July 2011
Japanese brands Honda and Toyota increased the discounting of their vehicles last month, according to the monthly analysis by US auto publication Edmunds.com.
A month after the pair slashed US "incentive spending" (discounts) in the wake of the Japanese earthquake and production shortages, both seem to be spending more in a bid to keep customers loyal - even if the cars aren't on the lots.
Edmunds.com said June 30 that Toyota increased its incentive spend by a whopping 30.5 percent in June, while Honda's rose by four percent, introducing a "Honda Promise" program which allows consumers to seal a deal on a new vehicle, even if it can't be delivered for some time.
"By kicking up their incentive spending, Toyota and Honda are sending a clear message that production levels are starting to return, even if those vehicles haven't yet hit dealer lots," said Edmund.com's Jessica Caldwell in a statement.
However, while there was good news from Japanese automakers, overall spending by automakers on discounts remained low - down nearly 20 percent compared to June 2010 at $2,165 per vehicle.
Amercian automakers spent the most, discounting $2,799 per vehicle on average, while European automakers offered $1,961 per vehicle and Japanese automakers shelled out $1,510 to consumers.
The only country's automakers which saw a decrease in the amount being spent to lure consumers in were Korean, with manufacturers cutting deals by 8.5 percent to $1,212 per vehicle.
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