Toyota extends incentives into May
The move is designed to boost sales, which rose 41% in March.
The extension is a bid for Toyota to continue sales momentum in the face of its recall crisis. It will put pressure on key competitors such as General Motors, Ford Motor (F), Honda Motor (HMC) and Nissan (NSANY).
Toyota shares in New York (technically American Depositary Units) slipped 0.5% to $80.84 today. Ford, Nissan and Honda shares were also lower.
Helped by big incentives in March, Toyota chalked up a 41% increase in U.S. sales from a year earlier.
That made it the second-best-selling automaker for the month, after GM but ahead of Ford, suggesting that many Toyota buyers were unperturbed by its recall of more than 6 million vehicles in the U.S. for sticky accelerators and other issues.
The Department of Transportation said Monday it plans to seek a $16.4 million fine against the Japanese carmaker, saying it "knowingly hid" safety problems from regulators.
The proposed fine, the maximum allowed under law against a carmaker and far exceeding the previous record of $1 million, is the first linked to Toyota's safety record, which was heavily scrutinized in congressional hearings earlier this year.
While Toyota's March incentives were below those offered by U.S. competitors, they were 44% more than what the company offered in March a year ago, according to Edmunds.com, the auto-shopping site.
Honda and others have had to jump in with their own promotions recently to keep customers coming to their dealers.
"This is going to cost everybody," James Bell, an analyst with auto information company Kelley Blue Book, told the Los Angeles Times. "The other manufacturers are going to have to pay to play for the next several months."
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The Nasdaq Composite (+0.5%) and S&P 500 (+0.2%) posted modest gains on Thursday, but not before enduring a morning dip into the red, which took place in reaction to reports indicating Russia has commenced military exercises on the Ukrainian border.
The news from Europe knocked the key indices from their early highs, while giving a boost to safe-haven assets like gold futures (+0.5% to $1290.80/ozt), Treasuries (10-yr yield -1 bps to 2.69%), and the Japanese yen (102.30 ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'