Incentives Up at Honda

Washington DC July 16, 2007; The AIADA newsletter reported that Honda Division is piling on the incentives this year - a sharp turnabout from its usual conservative approach to offering spiffs.

Automotive News reports that while Honda still doesn't offer cash rebates to customers, and says it doesn't plan to, the division is cranking up dealer incentives and lease subsidies like never before.

The givebacks have climbed steadily all year as Honda tries to unload some aging models and stay afloat in troubled segments such as minivans, SUVs and pickups.

"Everybody thinks Honda has it so easy," says Jeff Conrad, vice president of advertising for American Honda. "But it's competitive for us, too. We do what we have to do to meet sales targets." Conrad insists Honda won't dole out consumer cash - a move that pleases Honda dealers because it protects residual values.

"Honda is smart on how they spend their money on incentives," says Forrest McConnell, president of McConnell Honda-Acura in Montgomery, Ala. "Honda makes good business decisions. They're protecting the retail value for the customers."