In the recent shadow of Toyota’s unintended acceleration, Toyota has offered price and loan incentives to get customers back in the doors and buying automobiles. Honda, in an attempt to not fall behind, is offering its biggest deals ever, starting a price war which could leave other automobile manufacturers behind. The irony of this price war is that it is being started by Japanese automakers which historically don’t use these types of tactics. American automakers have been cautious about entering the price wars since they do not have a lot of cash to offer incentives.” said Aaron Bragman, auto industry analyst at IHS Global Insight.
These incentives may end up hurting Toyota in the near future. The company has seen sales soar as bargain hunters and loyal customers stream into showrooms to take advantage of the deals. Once that traffic runs out, Toyota will find it even harder to sell to people who are not loyal or who are skeptical of the brand.