The high cost of incentives in North America dampened Toyota Motor Corp.’s mostly rosy global profit report last week, although the automaker said it has now eased off the spending throttle.
Mazda reports a 17 percent drop in operating profit in the most recent quarter as rising incentives, foreign exchange rate losses and increased investment in U.S. retail network reforms offset higher sales volume and aggressive cost cutting.
Automakers have so far dealt with the downturn in an adult manner #8212; anxious, apparently, to preserve the health of the market even at lower volume.
With California and other states mobilizing in the courts to fight the new proposal on public-health grounds, automakers can’t risk too much of a pullback.
Ruling against Jerry Durant Auto Group offers lesson for dealers