Discount Wars Begin: Honda Fires Back Matching Toyota Deep Discounts

The auto price war is escalating with American Honda Motor Co. offering its biggest lease deal ever, a move analysts said was designed to offset aggressive sales incentives by rival Toyota Motor Corp.

What's unusual about this price war is that it is being fought the hardest by Japanese automakers, which historically have resisted using large incentives to sell vehicles.

Toyota fired the first volley when it announced a variety of discount financing and special lease deals this month in a move to regain market share in the U.S. after a series of embarrassing recalls.

"There is an irony in the fact that you have a price war launched by Toyota, which has never been reactionary before," said James Bell, an analyst with auto information company Kelley Blue Book. "They are playing the game other brands previously had to play to keep up with Toyota."






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WorldofLuxury - 3/25/2010 5:31:42 PM

+2 Boost

DISCOUNT!!! True soul of modern day American consumerism. It's the way to shop, and it's what visiting an auto dealer is all about! :)

g2ok - 3/25/2010 6:52:52 PM

+1 Boost

Why not - Japanese companies work in tandem.

wins555 - 3/26/2010 1:06:12 AM

+1 Boost

I agree totally with g2ok. Honda had a few recalls themselves so incentives are "normal" now that recalls have receded. Honda cannot fire back at Toyota as the heading indicates because Toyota is a lot bigger than Honda as a manufacturer.