Japanese Auto Makers Putting The Pressure On US Brands

The J.D. Power Information Network and CNW Marketing Research, reported that incentive spending by the Japanese has risen sharply this year, both in absolute terms and as a percentage of all sales.

This is expected to add to the Japanese Brands growing advantage in customer perception and attractiveness for their products.

The report also stated that per-vehicle spending by the three biggest Japanese marques on all incentives, including leases and APR deals, has soared. Nissan's incentive spending for July 2001 was up 80 percent from July 2000, nearly three-quarters of all Nissan transactions this summer have involved subvented or subsidized leases or APR deals.

Toyota incentives were up 62.5 percent with nearly one-third of all Toyota deals involve incentives, up from the low teens for all of last year, In the same period Honda's was up 60 percent.

The Japanese are already formidable competitors on the basis of their products and quality and now move to leverage their advantages in the American marketplace by dramatically increasing their spending on lease and interest-rate incentives.