• Jan 20, 2011
Toyota had a very interesting 2010. It was seemingly filled with an endless series of negative articles and shifting consumer perceptions. But has the automotive-buying public really been swayed? Kelley Blue Book decided to take a look back at Toyota's tough 2010 in a special report titled Toyota: One Year Later.

The answer to the question regarding consumer perception is a tricky one and can be answered with both a yes and a no. New car sales were flat compared to the rest of the automotive industry, which saw sales improve in the aftermath of the economic meltdown of 2008 and 2009. However, the values on used Toyota vehicles has held strong.

New car shoppers are reportedly very aware of Toyota's recent recall woes and feel the brand has been tarnished as a result. Yet 40 percent of those polled also believe the automaker has responded properly and fixed its various issues.

KBB has broken down Toyota's trying 2010 with valuable data garnered from its in-market shopping site and used car valuation analysis. Consumers have also been surveyed and all the information has been packaged into a report that's definitely worth a read, especially if you're considering buying a Toyota.

Click here (Warning: PDF link) to read it yourself.

[Source: KBB]
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Kelley Blue Book's kbb.com® Releases 'Toyota: One Year Later' Special Report

Toyota Values Perform In Line with Competitors; Company Fails to Sway Many New-Car Shoppers


IRVINE, Calif., Jan. 18, 2011 /PRNewswire/ -- Kelley Blue Book www.kbb.com, the leading provider of new car and used car information, today announces the release of its special report Toyota: One Year Later, providing an in-depth look at Toyota one year after its major recall crisis began in January 2010.

The comprehensive report from Kelley Blue Book's kbb.com includes a detailed look at Toyota's new- and used-car values over the past year; up-to-date shopper data providing consumer opinions, vehicle consideration and safety perceptions of Toyota since the recall crisis began; expert industry analysis from kbb.com's executive market analysts; and more.

Report Overview
Despite Toyota's recall woes of 2010, the brand's used-car values held strong throughout the year. Among the best-performing used Toyotas were 2007-2009 model-years Camry, RAV4, Highlander, Sienna and Yaris, primarily due to their offering of solid fuel economy in an affordable package. Meanwhile, used vehicles from Toyota's luxury sister brand Lexus underperformed the market throughout 2010 along with all luxury brands, primarily due to the economic concerns of used-car shoppers.

Toyota's 2010 new-car sales were flat while the industry improved, and the company relied upon heavy incentive spending to spur new-car demand. While Toyota launched aggressive incentives in March 2010 during the midst of the recall crisis, overall the company's incentive spending for 2010 was in line with its competitors. However, despite relatively flat sales for the year, Toyota's loss of new-car market share in 2010 was very pronounced, as consumers seemed hesitant to purchase new Toyota vehicles.

With regard to new-car residual values, Kelley Blue Book analysts predict that any long-term negative affects to Toyota's residuals will not be due to recall stigma, but rather because of other factors in the marketplace affecting Toyota's residual values, such as softening in the fuel-efficient vehicle segments, aging fleet designs and the aforementioned spurts of heavy incentives spending throughout 2010. Even with all of its recall troubles, Toyota managed to maintain its second-place brand residual standing behind top brand Subaru for 2011.

While Kelley Blue Book's valuation analysis shows that Toyota fared well overall during the past year considering all that the brand endured, data from Kelley Blue Book Market Intelligence reveals that the Toyota recall crisis of 2010 heavily impacted the opinions, considerations and perceptions of new-car shoppers. Nearly three-quarters of surveyed shoppers were aware of Toyota's 2010 recall problems, and more than half of respondents said they believe that Toyota's brand reputation has been tarnished by the recalls. However, 40 percent indicated they believe Toyota has adequately resolved its problems related to the recalls.

Toyota's overall purchase consideration was depressed throughout 2010, with data from the latest quarter (Q4 2010) showing purchase consideration at an all-time low in the last four years. In addition, consumer perception of Toyota safety ratings also experienced an all-time low throughout 2010, and it continues to remain significantly lower than previous years.

As for Toyota's new-car traffic on Kelley Blue Book's kbb.com, which can be a leading indicator of new-car sales patterns, the brand's overall traffic is down six percent in the last year.

However, specific model performance remains mixed, with the Corolla, Camry and RAV4 experiencing declines in traffic on kbb.com over the past year, while the Sienna, Prius, Highlander and Tacoma experienced increased traffic on kbb.com throughout 2010.

Kelley Blue Book's Full 'Toyota: One Year Later' Special Report
Includes charts, data and analysis providing an in-depth look at the following:
Brand and model-specific analysis of Toyota and Lexus' used-car values
Detailed examination of Toyota's new-car sales, incentive spending and market share
Changes in market share relative to Toyota's primary competitors
Residual value forecast for Toyota
Survey data providing car shoppers' opinions of Toyota since the recall began
Brand and segment-specific Toyota consideration data from new-car shoppers
Brand and segment-specific Toyota safety perception data from new-car shoppers
Brand and model-specific Toyota new-car traffic data from kbb.com
Expert industry analysis from Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book's kbb.com
Expert industry analysis from James Bell, executive market analyst for Kelley Blue Book's kbb.com

To view the entire Toyota: One Year Later special report, please visit http://mediaroom.kbb.com/special-reports.


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  • 23 Comments
      • 3 Years Ago
      Funny (looking at the photo leading this post), but since Toyota is a Japanese company - despite their U.S. headquarters building bowing to American tastes - why didn't they style their corporate campus to look like a pagoda? Why make the building look like a Frank Lloyd Wright creation? Sure, he designed a hotel in Toyko but his style wasn't 'big' in Japan.
      • 3 Years Ago
      how about a look at the impact on the families who their vehicles have killed.

      Does that report mention 3 maximum fines for illegally delaying safety recalls which dwarfs any previous "records?"
      • 3 Years Ago
      I'd still buy a Toytoa over anything that Ford has on the road any day. However, I do like the Dodge products that are coming out better than both, because they are big, and roomy, which matches what I'm looking for. Cant go wong with the Hemi either.
      • 3 Years Ago
      Did you guys know that FORD FOCUS is the MOST recalled car in the history of automotive industry? I bet they have a special spot for that particular fact in the Guinness Book of World Records!~ Oh and Ford as a manufacturer had more recalls throughout the history compared to any other company out there :) and yet people got over it so this Toyota recall will be history in no time!
        • 3 Years Ago
        I can understand why everyone might seem frustrated with Toyota, but honestly, Unintended Acceleration was a problem that plagued cars since their creation, and the NHTSA and other gov agencies were unable to find faults in Toyota vehicles. So, what exactly would you have done, if you were Toyota and there is nothing wrong with your cars? Let's think business and reality here, Toyota had no option, because their cars are fine.

        Many people, especially on this forum, might disagree with me, and that's ok, but if you think about it, all the jokes that went around about Sudden Unintended Accel that you can be certain a lot of people who got into an accident during the recalls and was driving a Toyota, filed it under Sudden Unintended Acceleration, to avoid being responsible. It really isn't as big as it was made by the media, and a part of that might be Obamas "Buy American" idea, which is great, but if the media's attack on Toyota was a part of that, that's just being a bad sport and disgusting. I hope that wasn't the case.
        • 3 Years Ago
        Because they HID it...

        All of a sudden there's a ton of recalls. Hell it seems like every month there's a new recall now from Toyota.

        No doubt the big three had MANY issues, but they've come an AMAZINGLY long way and have earned my business because of it.

        • 3 Years Ago
        I don't think so, but maybe. The distinction being Ford actually admits to their mistakes and fixes them.

        One Ford recall I can remember, was for a "recessed brake master cylinder reservoir lid." The lid could have been installed on the reservoir backwards, making the warning label difficult to read. I kid you not, that was the recall.
      • 3 Years Ago
      I believe it. In the IT field, long after the "you cant get fired for hiring IBM" mantra was gone, people would still consider them the safe choice. same here.

      people dont want to bother looking for another safe choice, though most cars are pretty safe now, from a last 100K+
      • 3 Years Ago
      While i agree Toyota has certainly had some quality issues that have obviously required attention and the company eventually took the appropiately action to fix - there is no denying the brand established a solid reputation over many years for very good and rightful reasons which remains no different today and that is Toyota undoubtedly engineers amoung the highest quality, most reliable, dependable and durable vehicles the market has to offer and the fact that Toyota and Lexus have consistantly and constantly ranked either 'No.1' or with the 'Top Fraction' in the overwhelming majority of Customer Satisfaction / Quality Surveys throughout the world for many years is testimoney to that.
      • 3 Years Ago
      I think the public's improved perception of Toyota is just a result of Toyota's lack of press towards the end of 2010
      • 3 Years Ago
      I wouldn't buy one because they're plain and uninspiring...

      Hyundai and Kia have immensely more inspiring vehicles right now IMO. I'm an American and I want to help our American economy. I plan to buy American. Ford, GM, and Chrysler really DO have some great cars either out now or on the VERY near horizon.

        • 3 Years Ago
        Yet I will... I want to be seen in it.
        • 3 Years Ago
        Hey, If you want to give your money to the Japanese auto makers that's great! I want to give it to the American auto makers.

        This site seems to differ from you're numbers...

        http://www.automotiveaddicts.com/inthenews/07-10-06.html
        • 3 Years Ago
        No offense to the Detroit 3, but you are no longer required to buy "American" anymore to help the American economy.
        • 3 Years Ago
        Copied and pasted from an AB post.
        "The New York Times reports that of the top five manufacturers with the most recalls, three were Japanese. Toyota led the game with a total of 6.7 million vehicles going back to dealerships, followed by General Motors with four million recalled vehicles. Honda landed third with 2.4 million troubled units with Nissan and its 2.1 million units not far behind. Finally, Chrysler rounded out the big five with 1.6 million recalled vehicles."


        Just posted by Autoblog this AM. Looks like Ford is doing a little better then...

        Yeah I agree. Having an internet fight about what is right and wrong is stupid. Your opinion is yours and mine is mine. I just want to support as many American companies as possible. I look at everything I buy. The Chinese are the ones I REALLY try to stay away from. Other countries buy our goods therefore deserve our business as well. I really wish Toyota and Honda would become innovators again... NO!! Not ANOTHER hybrid... Something that's NOT a FWD vehicle. I will NEVER say that Honda and Toyota make bad cars. It'd be a lie. I just think that we all had rose colored glasses on before. Well the Toyota debacle this last year or so has removed those. They still make GREAT cars. Just not enough BANG for me to buy one.

        When you shop, make a concerted effort to look where the stuff is made. Hell, Bounce dryer sheets are made in Mexico! I buy the store branded ones that are made in the USA! More jobs that stay here make OUR economy stronger. Light bulbs, GE made in Mexico, Every day Value made in Ohio! WTH? I do my part to help every day.
      • 3 Years Ago
      When will the progress all these investigations into Toyota's so-called 'Electronic Issues' be regularly updated to the public because virtually no information has been released.

      Is it because NHTSA, NASA and all the other so-called guru's have indentified no shortcomings.

      Furthermore ... i notice the critics who were slamming Toyota claiming 'Electronic Related Faults' with no supporting / factual evidance have gone very quiet. Infact, it is as if they have gone underground .. mmm !!
      • 3 Years Ago
      I think Toyota has been getting a free pass from the media for many years. For some reasons, our media would rather destroy an American company than a foreign one. If Toyota's problems were GM's or Ford's, the media would be forever unrelenting.
        • 3 Years Ago
        att : dan9868 - i disagree.

        I don't believe Toyota was getting a free pass because for many years they simply engineered much higher quality cars then many other brands while the Detriot 3 were basically complete and utter stuff-ups and to a certian degree albeit less that remains no different today. Regarding the likes of GM and Chrysler, they haven't improved as much as some believe or more accurately ... as some would like to believe.

        Even today after the nightmare Toyota endured during 2010 ... i can assure you with absolute confidance that Toyota and most certainly Lexus sell amoung the highest quality cars of all.
      • 3 Years Ago
      Hubris bites! Toyota bean counters squandered its gold standard image for quality and integrity.
      • 3 Years Ago
      When will the progress all these investigations into Toyota's so-called 'Electronic Issues' be regularly updated to the public because virtually no information has been released.

      Is it because NHTSA, NASA and all the other so-called guru's have indentified no shortcomings.

      Furthermore ... i notice the critics who were slamming Toyota claiming 'Electronic Related Faults' with no supporting / factual evidance have gone very quiet. Infact, it is as if they have gone underground .. mmm !!
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