“It’s like a recurring bad dream for the U.S. automotive industry,” writes Bryan G. Hoffman of The Detroit News. “Every time Detroit’s automakers pledge to back off profit-killing and brand-tarnishing incentives, a huge dip in sales sends them running back to rebates.” Following the announcement of GM’s Red Tag Event, Ford Ford and Daimler Chrysler said they were evaluating the new incentive program and planning their counteroffensives. Chrysler will announce a new incentive program on Thursday, according to spokesman Jason Vines. GM’s move is frustrating and undermines Chrysler’s effort to shift to a more value-oriented pricing strategy, he said. “You want to get off the incentive dope,” Vines said. “(But) you’ve got to remain competitive.”
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