Increased Incentives Threaten Comeback for Dealer Profits


Reuters - February 8, 2011

The first shots have already been fired in what could be an esca­lat­ing price war between major automak­ers in the U.S. mar­ket. Increased dis­count­ing on new car sales would be a boon to con­sumers but could chip away at the prof­itabil­i­ty that many investors had pro­ject­ed for automak­ers at the start of the sec­ond year of a still-devel­op­ing recov­ery in U.S. auto sales.