Incentives

When a company such as GM offers incentives does it cut into the dealer's profit or does the corporation eat the loss in order to (hopefully) pick up market share?

Also, does the dealer get fully reimbursed by the corporation for warranty work or does it cost them something also?

Thanx.

No, it does not cut into the dealer's profit, nor will there be a loss by the manufacturer, it's planned strategy to promote new or certain models.

As for warranty work or recalls there will be a labour rate in place set by the manufacturer, there is no loss to the dealer.

When a manufacturer offers special incentives such as rebates or financing on
certain models, these special offers have an expiry date in place.When a
salesman tells a buyer this special program is about to expire, he is "telling
the truth". Often consumers will laugh thinking it's another sales pitch, only
to return to the dealership having missed the opportunity