360insights’ “Tariff Cheat Sheet” for the auto industry emphasizes the need to rethink incentive programs amid rising tariffs and production costs. Traditional volume-based rebates no longer suit today’s volatile environment. Instead, behavior-based incentives—like promoting service packages, bundling offers, and loyalty programs—can protect margins and drive sales. U.S.-based dealers face higher costs from steel and parts tariffs, while international markets require localized strategies. To stay competitive, businesses should support dealer cash flow, shift from flat rebates to performance-driven promotions, and leverage technology for agile program management.

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