Honda Takes On Toyota With Incentive Program

The Los Angeles Times reports that Honda, Japan's No. 2 automaker, is taking aim at Toyota, its No. 1 rival, with one of its largest-ever U.S. car-buying incentive programs. The Japanese automakers have traditionally avoided large incentives programs, which cut into profits.

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RENEE MONTAGNE, host:

NPR's business news starts with automakers going head to head.

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MONTAGNE: Honda is taking on Toyota. The Los Angeles Times reports that Japan's number two automaker is taking aim at its number one rival by offering one of its largest-ever U.S. car-buying incentive programs. The Japanese automakers have traditionally avoided large incentive programs because they cut into profits, but this month Toyota began offering aggressive deals to win back customers put off by the recall scandal. Analysts say Honda has to respond because its customer base is most likely to also consider a Toyota when shopping for a car.

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