AutoNation CEO Mike Jackson says incentives will increase this quarter as Japanese automakers' inventories return, and other marketing activities also will increase. But cool heads must prevail. Automakers should remain rational because a price or share war would damage the progress achieved since the economic collapse.
Competitiveness among all brands is rising. The Detroit 3, with better quality and lower breakeven levels than before, have increased their U.S. market share as Japanese automakers have struggled to rebuild inventories since the March earthquake.
Barring a greater financial collapse, this industry is poised to take advantage of a recovery. But automakers must stay focused on the positive gains achieved by realistic pricing.