- Aug 16, 2006
Mazda will cut incentive spending beginning with CX-7
The Nihon Keizai, a Japanese business publication, reported that Mazda will cut incentives spending in the U.S. in an effort to raise vehicle average transaction prices and profit margins for each vehicle it sells. As of late, automakers have been frowning upon incentives as dangerous and profit-eroding, no doubt in response to the huge decrease in sales following last summer's "employee pricing" binges.
Initially, the automaker will cut incentives on the new 2007 CX-7 crossover (pictured), and subsequent 2007 models will roll out sans incentives. Ford Motor Company as a whole has been improving on the profit margin front thanks to a reduction in incentives from $2,000 to $1,800 on average per vehicle.