• Feb 15th 2010 at 3:58PM
  • 34
In light of the litany of recall-related problems Toyota is facing right now, executives at the Japanese automaker are predictably being very selective about what they say – and when they say it. But while Toyota brass is playing its cards close to the vest, dealers are apparently starting to spill the beans about the automaker's plans to spur sales. Bloomberg is reporting that three executives from retailer groups with Toyota franchises reveal that the Japanese automaker is mulling the idea of extending warranties to as long as 10 years to gain back customer trust. If the extended warranty materializes, the Hyundai-like coverage could add quite a bit of money into Toyota's warranty costs, but that cost could be made back in augmented consumer confidence and higher sales totals.

Toyota is also reportedly looking into ways to get metal moving again, and cash incentives of thousands of dollars may be used to accomplish the feat. Toyota sales suffered in a big way (down 16 percent for the month of January) in part because it couldn't sell eight models affected by a stop sale related to the recall of 2.3 million vehicles covered under the sticking gas pedal recall. Toyota will reportedly wait until after its meetings with Congress from February 24 though March 2 to make any announcements.

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[Source: Bloomberg]

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    • 1 Second Ago
      • 5 Years Ago
      We already know what huge incentives did for the Big Three:
      - Lower resale value
      - Lessened brand prestige
      - Rental lots full of cars that no one wanted

      A longer warranty may help drive some sales, but more importantly, what does this say for a brand that was supposed to be bulletproof?
        • 5 Years Ago
        I disagree. Cr@ppy cars did that... not incentives. Even though their quality is now apparently as good as or better than the competition, people still remember the decades of lousy quality (for the most part) through the 70's, 80's and well into the 90's. If that wasn't true, companies like Toyota would never have gotten the market share here that they have in the first place.
      • 5 Years Ago
      I cant wait for Feb. by the numbers!
        • 5 Years Ago
        How the mighty have fallen edition.
      • 5 Years Ago
      Toyota definitely needs to have a longer warranty and not just because of the current lets call it "situation". Its a sign and definitive of internal confidence.
      Its also a very clear indication that toyota cares about quality and the qaulity of the parts they are being supplied by thier parts suppliers.
      Presumably all of the parts around the world, whether it be japan, europe, UK, china, and the rest of thier assembly and CKD plants in asia are all supplied by ISO9001 and ISO9002 certified.
      Toyota also needs a longer warranty for the also very simple reason that GM and Hyundia and others are doing a longer warranty. Toyota is behind the curve here and they need to get ahead of the curve.
      • 5 Years Ago
      Wonder what could come out of all this-a stronger but humble and even more reliable and Toyota? Toyota bashers better be careful what they wish for!
        • 5 Years Ago
        i do agree with both of you! Thanks SS and Tourian!
        • 5 Years Ago
        Competition is a good thing. And no good company should really be afraid of it. I think Toyota has been enjoying their success and got careless. Now it looks like the playing field has been leveled. They have enjoyed mindless followers and a forgiving media for along time and will have to go back to earning customers again with good product.
      • 5 Years Ago
      I wonder if hollywood plans to make a movie about this like they did with the Tucker and the windshield wipers? should be funny.
      • 5 Years Ago
      10 yr extended warranty should just be the tip of iceberg right now, they better do a lot better than that. Public confidence in Toyota is slipping by the minute everyday, this supposed "sticky gas pedals" is more out of control media hysteria and lynching by American politics than anything else but the fact is this perception of danger has been imprinted in the consumer's psyche and that's not easily undone, it took over 30yrs to build their reputation of reliability and customer loyalty, that's what they stand to lose if this fiasco is not handled correctly. so in another words 1) replace flawed CTS gas pedals with superior (japan made) Denso and 2) "Lexus-ize" the toyota dealerships aka whole lotta "aim to please".
        • 5 Years Ago
        Japan-made = superior?

        I was under the impression that the US-made pedals were produced correctly to Toyota spec.

        Is that not true? Or is Toyota crowing about how "they came from an american supplier" all you needed to know?
      • 5 Years Ago
      Well if they give a cash incentive on the FT-86 (or whatever they are planning on calling it) then they will have my attention.
      • 5 Years Ago
      Some of the commentators here (and most of the media) have missed the point. Toyota lied and lied and lied and tried to cover this up from the beginning. That's the real story here. The CEO of Toyatoa America was on Good Morning America and said he wasn't aware of any plans to recall the Prius. Within days it was recalled.
      Either the man is really, really, incompetent or kept in the dark by his Japanese masters or lying. Pick two out of three. There are no other options. And I bet he's not incompetent.
      Yeah, I know, Pinto, Pinto, Pinto, blah, blah, blah. That was thirty years ago. Get over it.

      Toyota made and sold cars that killed people and they tried to cover it up and and lied about it. Not for weeks. Not for months. For years.

      That's the real story here and Toyota for the most part is getting off the hook.
      • 5 Years Ago
      He probably did, its just that the reply system isn't very good. You'd know that if you were a regular. Which is why I bet you wish there was an edit feature, because your comment doesn't make sense as it stands now.
      • 5 Years Ago
      The big problem with marketing 10/10 warranties is that once you start offering it, you can never stop it. You'll be forever linked to it. Wisest to start with a longer warranty and see if that gets you the sales in cars that you want.
      • 5 Years Ago



      And now, we may never know just how deep the dark secrets of Toyota are.
      This is pure bs from the company that wanted to come clean and take care of their customers.
        • 5 Years Ago
        That was a good read. now toyota should do something about the transmissiongate where they claim you never have to change the trans fluid if you don't tow. bs on that.
      • 5 Years Ago
      Here we go again!
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