Honda betting new products cut incentive spending

Honda's Accord and Civic April sales were up, showing positive return from increased incentive spending. Honda isn't used to throwing a lot of cash and extra content on the hood of their top selling cars but recent price pressures and an aging Civic have caused a change of practice. The Civic will be all-new for 2006, prompting Honda to predict a decrease in incentive spending to $480 from the current $690. The Accord, which sounds like it will see a refresh for 2006, is expected to reduce incentive spending to $880 from $1,050.