Toyota reportedly mulling longer warranties, cash incentives to rekindle consumer confidence

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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