Toyota Is Said to Discuss Rebates, Warranties to Lure Customers
02-13-10, 09:40 PM
#17
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after all this recalls after recalls do you still think toyota is a bulletproof, problem free car? I got rid of my 03 accord coupe at 35k because it started to make annoying little problems. maybe mine was a lemon, but i believe no car is safe at any miles no matter what brand it is. i've seen plenty of camry buyers complaining in their forums.
Toyota can't afford to be cocky. medias already did enough damage to toyota's brand image. i wouldn't be shocked if toyota do something drastic this year. they need to eat a humble pie and do whatever it takes to keep customers. giving out better warranty will only help their image. it only means that they are confident.
Toyota can't afford to be cocky. medias already did enough damage to toyota's brand image. i wouldn't be shocked if toyota do something drastic this year. they need to eat a humble pie and do whatever it takes to keep customers. giving out better warranty will only help their image. it only means that they are confident.
Mine has 75,000 miles. No repairs, just oil changes. The Yaris is remarkably solid. I know someone closing in on 400,000 miles on his '07 and he has only needed one repair (alternator started to go).
02-13-10, 10:31 PM
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I heard it from a friend in South Korea who is a Hyundai insider, just kidding 
.
I heard it through a personal source, don't know how true it is.
There is a witch hunt going on against Toyota here in the US.
Longer warranties would be fighting this witch hunt, and it would instill confidence, instead of doubt in the minds of customers.
Announcing longer warranties would be a huge blow and counter to the negative media onslaught Toyota has been receiving. It would very likely silence the media onslaught against them.
It would cost Toyota very little anyways as their warranty claims are very low these days.
It would be to retain customers, not to win new ones.
Getting back to the point, Toyota is merely considering this, it is not confirmed they will
.I heard it through a personal source, don't know how true it is.
I think it's premature for them to even consider it.
Long warranties like Hyundai's suggest a troubled past that needs to be put to rest and shows a backing by a desperate company. That's NOT Toyota.
If people are too ignorant to think that Toyota's now suck because of a few mundane recalls, then that's their problem. Still though, going forward if Toyota can avoid more recalls and goes back to their bullet proof reputation, customers will be plentiful. It's one bad year out of decades of excellence. Most other automakers have survived many, many bad years. Actually ALL automakers except Toyota and Honda have chunks of history with bad quality/reliability records (Toyota and Honda as well if you count their early starting years).
It's just silly to think Toyota needs to do what Hyundai needed to do to win customers.
Afterall, people buy Toyota's because they don't need warranties.
Toyota could offer 200,000 mile power train warranties and the claims would still be minuscule.
Long warranties like Hyundai's suggest a troubled past that needs to be put to rest and shows a backing by a desperate company. That's NOT Toyota.
If people are too ignorant to think that Toyota's now suck because of a few mundane recalls, then that's their problem. Still though, going forward if Toyota can avoid more recalls and goes back to their bullet proof reputation, customers will be plentiful. It's one bad year out of decades of excellence. Most other automakers have survived many, many bad years. Actually ALL automakers except Toyota and Honda have chunks of history with bad quality/reliability records (Toyota and Honda as well if you count their early starting years).
It's just silly to think Toyota needs to do what Hyundai needed to do to win customers.
Afterall, people buy Toyota's because they don't need warranties.
Toyota could offer 200,000 mile power train warranties and the claims would still be minuscule.
Longer warranties would be fighting this witch hunt, and it would instill confidence, instead of doubt in the minds of customers.
Announcing longer warranties would be a huge blow and counter to the negative media onslaught Toyota has been receiving. It would very likely silence the media onslaught against them.
It would cost Toyota very little anyways as their warranty claims are very low these days.
It would be to retain customers, not to win new ones.
Getting back to the point, Toyota is merely considering this, it is not confirmed they will
02-13-10, 10:46 PM
#20
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Unfortunately a longer warranty doesn't solve the problem of people's perception that Toyota's are defective and can accelerate out of control any time, anywhere. Everyone knows Toyota will have to fix any acceleration problems no matter how many miles, so giving a longer warranty on the whole car won't comfort people. They are scared there is something wrong with their cars and Toyota either won't tell them what the problem is, or Toyota doesn't know what the problem is. Both answers are deadly to keeping and attracting new customers. And there is no easy solution. Once people get scared, even if there is no problem, it is hard to get them back on track. This is Toyota's quandry.
02-13-10, 11:30 PM
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Unfortunately a longer warranty doesn't solve the problem of people's perception that Toyota's are defective and can accelerate out of control any time, anywhere. Everyone knows Toyota will have to fix any acceleration problems no matter how many miles, so giving a longer warranty on the whole car won't comfort people. They are scared there is something wrong with their cars and Toyota either won't tell them what the problem is, or Toyota doesn't know what the problem is. Both answers are deadly to keeping and attracting new customers. And there is no easy solution. Once people get scared, even if there is no problem, it is hard to get them back on track. This is Toyota's quandry.
The way consumers see it, a company would not increase it's warranty if there was a major problem with their product.
02-14-10, 06:08 AM
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Unfortunately a longer warranty doesn't solve the problem of people's perception that Toyota's are defective and can accelerate out of control any time, anywhere. Everyone knows Toyota will have to fix any acceleration problems no matter how many miles, so giving a longer warranty on the whole car won't comfort people. They are scared there is something wrong with their cars and Toyota either won't tell them what the problem is, or Toyota doesn't know what the problem is. Both answers are deadly to keeping and attracting new customers. And there is no easy solution. Once people get scared, even if there is no problem, it is hard to get them back on track. This is Toyota's quandry.
Exactly. This is the problem. Warranties don't have anything to do with fixing safety design flaws. Those are covered by recalls no matter the age or mileage anyway.
Toyota's current woes aren't issues that demand out of pocket expenses - which is what a warranty is for. So anyone who knows anything about cars and warranties won't be swayed with such a gimmick.
02-14-10, 07:22 AM
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Exactly. This is the problem. Warranties don't have anything to do with fixing safety design flaws. Those are covered by recalls no matter the age or mileage anyway.
Toyota's current woes aren't issues that demand out of pocket expenses - which is what a warranty is for. So anyone who knows anything about cars and warranties won't be swayed with such a gimmick.
Toyota's current woes aren't issues that demand out of pocket expenses - which is what a warranty is for. So anyone who knows anything about cars and warranties won't be swayed with such a gimmick.
Whatever measures Toyota is looking at right now to help retain customers (and possibly gain new ones) is not aimed at those who know about cars. Whatever they come up with, it will be primarily aimed at the masses who know very little about cars. This is common sense here.
Obviously for "people in the know", warranties don't really sway them, but a large majority of the mass population is not "in the know".
02-14-10, 09:35 AM
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No car is perfect. Toyota still tops the trouble free list though regardless of the fact that there's a 1 in a million chance (literally) of unintended acceleration. A potentially serious problem no doubt but that doesn't affect actual durability.
Mine has 75,000 miles. No repairs, just oil changes. The Yaris is remarkably solid. I know someone closing in on 400,000 miles on his '07 and he has only needed one repair (alternator started to go).
Mine has 75,000 miles. No repairs, just oil changes. The Yaris is remarkably solid. I know someone closing in on 400,000 miles on his '07 and he has only needed one repair (alternator started to go).
then putting 10/100k warranty wouldn't do any damage financially.
anyway, toyota being top in durability has nothing to do with giving away the best warranty in the nation. long warranty only means 'peace of mind'. right now, many toyota customers and potential buyers don't have a peace of mind thanks to media's relentless pursuit. giving them a long warranty would be reassuring.
media did a fabulous job making toyota 'not as reliable as you think' brand. i think CNN should win an award for that. they are just having too much fun on toyota issues. it's ridiculous.
02-14-10, 10:16 AM
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I think we might find out something this week regarding rebates and warranties. We don't know if sales are in the tank right now for Feb but if they are, Toyota will need something to get sales going. In Canada Toyota is offer free maintenance and free ECP on select Lexus models. We have an announcement this week.
02-14-10, 11:26 AM
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http://www.reuters.com/article/idUSTRE61D1H120100214
ORLANDO, Florida (Reuters) - Toyota Motor Corp (7203.T) is considering increased incentives and an extended warranty program to combat consumer concerns about a deepening product safety crisis, a source briefed on still-developing plans said on Sunday.
Toyota, reeling from its largest recall in history, is discussing a range of options with its U.S. dealers to support sales, including $1,000 in addition to the current $1,000 in cash incentives to returning Toyota customers, the source told Reuters.
Toyota's current $1,000 in "loyalty" bonus matches incentives offered by General Motors Co GM.UL, Ford Motor Co (F.N), Chrysler and Hyundai Motor Co (005380.KS) to lure Toyota customers.
Other options Toyota is considering include a free maintenance program -- such as oil changes and regular mile services -- and a new warranty program that at least matches Hyundai's market-leading 10-year, 100,000-mile powertrain warranty, the source said.
Toyota currently offers a five-year powertrain warranty, or 60,000 miles, according to its website. It also offers a three-year basic coverage warranty for "all components other than normal wear and maintenance items."
The source declined to be identified because the plan has not been made public and has yet to be finalized.
Toyota spokeswoman Celeste Migliore said the company reviews many options to remain competitive for each month, but declined to comment on details.
Don Esmond, senior vice president of Toyota Motor Sales, told Reuters in an interview on Saturday that Toyota will consider "competitive incentives" to attract consumers and take steps to reinforce the brand.
Toyota's U.S. sales dropped 16 percent in January to the lowest level in more than a decade, after it suspended sales of top-selling vehicles subject to safety recalls, including the Camry and Corolla sedans.
AutoNation (AN.N) CEO Mike Jackson said on Saturday that by April, Toyota's sales would return to near-normal levels. Jackson said that for the full year, Toyota's U.S. market share will drop 1 percentage point, from 17 percent in 2009.
AutoNation handles about 3 percent of Toyota's U.S. sales and is the biggest dealer group in the country. About 20 percent of its overall sales are Toyota vehicles.
Esmond said Toyota met with its dealer advertising committee this past week to come up with ideas to bring in more customers.
"We're going to need something to reinforce the brand. I think we'll look at anything and everything," he told Reuters. "We are going to provide the appropriate incentives."
The automaker will also pay for the inventory financing costs its dealers have suffered during the suspension of sales, Esmond said.
ORLANDO, Florida (Reuters) - Toyota Motor Corp (7203.T) is considering increased incentives and an extended warranty program to combat consumer concerns about a deepening product safety crisis, a source briefed on still-developing plans said on Sunday.
Toyota, reeling from its largest recall in history, is discussing a range of options with its U.S. dealers to support sales, including $1,000 in addition to the current $1,000 in cash incentives to returning Toyota customers, the source told Reuters.
Toyota's current $1,000 in "loyalty" bonus matches incentives offered by General Motors Co GM.UL, Ford Motor Co (F.N), Chrysler and Hyundai Motor Co (005380.KS) to lure Toyota customers.
Other options Toyota is considering include a free maintenance program -- such as oil changes and regular mile services -- and a new warranty program that at least matches Hyundai's market-leading 10-year, 100,000-mile powertrain warranty, the source said.
Toyota currently offers a five-year powertrain warranty, or 60,000 miles, according to its website. It also offers a three-year basic coverage warranty for "all components other than normal wear and maintenance items."
The source declined to be identified because the plan has not been made public and has yet to be finalized.
Toyota spokeswoman Celeste Migliore said the company reviews many options to remain competitive for each month, but declined to comment on details.
Don Esmond, senior vice president of Toyota Motor Sales, told Reuters in an interview on Saturday that Toyota will consider "competitive incentives" to attract consumers and take steps to reinforce the brand.
Toyota's U.S. sales dropped 16 percent in January to the lowest level in more than a decade, after it suspended sales of top-selling vehicles subject to safety recalls, including the Camry and Corolla sedans.
AutoNation (AN.N) CEO Mike Jackson said on Saturday that by April, Toyota's sales would return to near-normal levels. Jackson said that for the full year, Toyota's U.S. market share will drop 1 percentage point, from 17 percent in 2009.
AutoNation handles about 3 percent of Toyota's U.S. sales and is the biggest dealer group in the country. About 20 percent of its overall sales are Toyota vehicles.
Esmond said Toyota met with its dealer advertising committee this past week to come up with ideas to bring in more customers.
"We're going to need something to reinforce the brand. I think we'll look at anything and everything," he told Reuters. "We are going to provide the appropriate incentives."
The automaker will also pay for the inventory financing costs its dealers have suffered during the suspension of sales, Esmond said.
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