Mazda to scrap new-model incentives in U.S.-paper

Japan's Mazda Motor Corp. (7261.T: Quote, NEWS, Research) plans to terminate margin-eroding sales incentives for new models in the United States to stabilise car prices, the Nihon Keizai business daily reported on Wednesday. The paper said Mazda, one-fifth-owned by Ford Motor Co. (F.N: Quote, Profile, Research), initially intends to stop offering incentives for the new CX-7 sport utility vehicle, which was introduced in the U.S. market in May. The company plans eventually to scrap all incentive programmes on new models in the United States, the paper added.

Mazda said in July that profitability in North America was improving as it reduces spending on incentives, which averaged around $1,800 per vehicle in the April-June quarter, compared with around $2,000 in the year-earlier period. Officials at Mazda were not available for comment.


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