We are seeing the convergence of improved economic conditions, the leveling off of sales incentives and the huge amount of new vehicle launches scheduled over the next few years all playing a factor.
They think incentives will be leveling off. With all the new models being launched in next 12 to 18 months, they will not need incentives to spur sales.
In prior years, saddled with heavy incentives and a sagging economy, industry executives pushed profitability out as far as they could. Our survey this year has definitely found improved profit levels emerging sooner rather than later, and this is very encouraging.