Report: Toyota sales may bounce back big time in March
As Toyota's recall issues hit a fevered pitch over the past few months, customer confidence faltered and sales predictably suffered. We were wondering how Toyota would react to the comparative dearth of showroom traffic, and the answer was to take a page out of the domestic's tattered handbook: big-time incentives.
On March 1, Toyota announced zero percent financing, subsidized leases and free maintenance for two years, and the early results appear to be extremely favorable. Automotive News reports that analysts are seeing big-time gains for the Japanese automaker, with evidence that sales are up 50 percent so far for the month. A 50 percent sales increase for the month would more than wipe out Toyota's depressing January and February, but analysts like Edmund's Jessica Caldwell reportedly feel sales will level out to a predicted 30 percent rise by March 31. "Incentives work best in the early going, but they start to peter out as the month goes along."
So does news of a Toyota sales increase means that Americans are tuning out the recent influx of bad news including a pair of reported runaway Prius hybrids in the interest of saving money? AN reports that analysts like Caldwell and George Magliano at IHS Global Insight feel Toyota loyalists are jumping at the company's big-time incentives, and the brand will have to try new things to attract new customers in the months ahead. That may be true, but we're thinking Toyota must be more than a bit relieved that customers are coming back to showrooms, at least for now.
[Source: Automotive News – sub. req. | Image: Ronaldo Schemidt/AFP/Getty Images]
Reader Comments (Page 1 of 4)
sparkster 11:38AM (3/11/2010)
I guess you haven't been watching the morning news. It's raining again @ Toyota.
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Kotse 12:47PM (3/11/2010)
Check out this lol Toyota shirt I stumbled upon...reportedly a bestseller at one popular online bargains shopping site.
http://www.despair.com/toyota.html
I might get one... ;p
Chazz 1:31PM (3/11/2010)
@ Kotse Thanks for the link. I may get on too.
Kotse 2:57PM (3/11/2010)
Why I've been downrated...am just a messenger for this funny Toyota shirt.
It goes to show Toyota is not invincible...it is perceived it to be, thanks in due part to the propped up "stellar quality" propaganda by said company...and the MSM.
I never was a Toyota owner/fan...and never will be.
GeorgeAtha 4:21PM (3/11/2010)
aha, just the t-shirt ...
but I kind of like this one more:
http://www.despair.com/gomo.html
tekdemon 8:35PM (3/11/2010)
True, except most of the people heading to the showrooms are probably pretty desensitized to all the Toyota news by now. I mean, they've basically been hearing about this stuff since late last year and like anything else if you hear something long enough you kinda start to tune it out.
And honestly just listening to what local media people seem to be saying now it kinda sounds like people are starting to have a little bit of doubt if not weariness about it. The really paranoid Toyota owners were already paranoid from the other stuff so there's really no additional paranoia to be had. Unless thousands of Priuses start exploding all of a sudden I don't think single incidents are really going to do anything except make people wonder whether those people wanted a good excuse to get out of being blamed for a car accident.
bssplayr 11:43AM (3/11/2010)
Maybe so, but their Kool-Aid dispenser is working PERFECTLY!
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Tourian 11:44AM (3/11/2010)
Now they are forced in to the same incentive cycle the big 3 has been caught in for years. One big month of giving them away will definitely bring people in, but eventually you have to end the program, then what happens? What happens to residual values?
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The Other Bob 12:36PM (3/11/2010)
I have been thinking the same thing. Using expensive incentives and expensive advertising as the primary way to sell cars helped send GM to bankruptcy. It is hard to get off the addiction of the good deal.
Polly Prissy Pants 1:03PM (3/11/2010)
You can't really compare what Toyota's doing to what Detroit did for decades. Detroit had to essentially permantly lower the price of their cars via incentives because they had to keep factories working and the quality wasn't quite there. Toyota is offering incentives to get past a short term media crisis that will be long forgotten by the average consumer this time next year. Incentives only hurt resale if they're perpetual which should not be the case here.
tankd0g 4:43PM (3/11/2010)
I didn't see any cuts to MSRP. Analogy fail.
Luis 11:47AM (3/11/2010)
Regardless of what the negativos here on AB spout, Toyotas are still good cars. This is perhaps the best time ever to buy one, as the parent company is desperate and dealers are desperate. All the hate is working in favor of the buying public, and now is the perfect time to pick up that Tacoma, 4Runner, Camry, Prius, whatever.
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caddy-v 11:54AM (3/11/2010)
Do you get free oil changes for being a Toyota suck up?
Yaroukh 12:08PM (3/11/2010)
yes, because good cars kill their drivers O.o
psknapp 12:14PM (3/11/2010)
They may still make some good cars, but if I don't trust them to be there when they don't (unless forced to), how can I trust my family with them? The only cars I've ever bought have been Toyotas (as much for my needs as trusting Toyota) and until recently, I had been satisfied. Our next car was likely going to be the Highlander (until recently), but I don't believe in them any more. Looks like were leaning toward Subaru or Honda now.
Mr Clickerson 12:14PM (3/11/2010)
@ Caddy-V:
No, his engine is sludged up.
Serge 12:14PM (3/11/2010)
You're still not going to get INTENTIONAL acceleration though...
bd2 2:57PM (3/11/2010)
Good appliances - yes; good cars - that's highly debatable.
Greg Aryous 11:48AM (3/11/2010)
Toyota has just committed the fatal sin of the Big-3 - Train your customers to wait for big incentives, then buy... without the big money on the hood of a Toyota, buyers will just wait like they've done for years with the Big-3... Plus, Toyota residual values will suffer as is already evident in the used car market, KBB and on NADA guides...
Big jump in sales this month, followed by falling off a cliff next month...
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Luis 12:05PM (3/11/2010)
Were you one of those that predicted sales falling off a cliff after C4C was through? Which never materialized. All this is doing is pulling in those customers who put off a purchase the past 2 months to see what would happen. Sales will rebound and then next month they may in line with the rest of the industry (up, but not dramatic). So April compared to March may be down, but April 10 to April 09 will likely be up in line with the industry. Unless something dramatic happens, like all Camrys on the road blowing up. I'd say the odds of that match the odds of all Fusions on the road blowing up.