Remember when the domestic automakers needed almost endless incentives (to the point of losing money) to move their vehicles? Meanwhile, Japanese brands such as Toyota and Honda had so many drivers at their dealership doors, they did not budge on their car prices.
Well, times are a changing! The domestic automakers are building highly competitive vehicles (that consumers want to drive) and they are holding much firmer to their pricing. Meanwhile, with a combination of lower quality or stagnant innovation/styling, Toyota and Honda are now offering move incentives (discount pricing) to move cars.
Edmounds.com and TrueCar.com were reported in USA Today as saying, “Honda is offering the biggest sales incentives in its history and Toyota isn’t far behind.”
And what is the bottom line? In the past, Toyota and Honda buyers remained loyal to the brands but are now willing to buy other (American) vehicles. And after the purchase, they have the opportunity to be satisfied drivers of these ‘new’ vehicles.
By offering incentives, the Japanese are trying to gain back market share. However, this might be quite challenging as the Japanese have been very good at building/copying cars on the market and improving the quality. However, now that the marketplace requires ‘new’ innovations, the Japanese do not seem to be in as strong of a position. This has led to their building vehicles that are actually bit behind the curve.
America’s innovative spirit and the freedom to pursue it is something that is shining through!
Kyle Busch is the author of “Drive the Best for the Price: How to Buy a Used Automobile, Sport-Utility Vehicle, or Minivan and Save Money.” He welcomes your comments or car questions at his auto web site: www.cartown1.com. Follow Kyle on Facebook and Twitter.