Toyota Motor Corp.'s recall woes would seem to be good news for American automakers, but the incentives that it's offering to help overcome a spate of bad publicity could spell trouble for its domestic competitors.
In recent weeks, Toyota has ratcheted up incentives on its cars and trucks. It's an unusual move for a company that has long been able to set its prices with little regard for the rest of the industry. And analysts fear that could trigger a pricing war.
"It's a cause for concern for everybody. They have a tremendous balance sheet -- the best in the industry -- and they really do have the ability to sway the market with their pricing," said Michael Robinet, vice president of global vehicle forecasts at CSM Worldwide.
Read Article