Target Toyota: Why the Recall Backlash Is Overblown

Target Toyota: Why the Recall Backlash Is Overblown

GM stake compromises Obama in Toyota's recalls | detnews.com | The Detroit News

GM stake compromises Obama in Toyota's recalls | detnews.com | The Detroit News

2011 Toyota Sienna

Many Toyota owners tout brand despite recall

Carolyn Said, Chronicle Staff Writer

Tuesday, February 2, 2010

Even as Toyota finally announced a fix for the huge recall that has dented its once-pristine reputation, Bay Area Toyota owners largely said they're unfazed by the situation

"I'm not upset; I've had four Toyotas and they all lasted beyond 250,000 miles," said Elaine Hui of Alameda, who was waiting for an oil change on her 10-year-old minivan at dealership One Toyota of Oakland on Monday. "I will never go to another brand; I'm a faithful customer."

Toyota on Monday said it is shipping replacement parts to dealers to repair the sticky gas pedals that could cause cars to accelerate unintentionally. That problem last week forced the company to recall 2.3 million cars, halt sales of eight popular models and take the extraordinary step of halting production at most of its North American factories. The recall came several months after Toyota first received reports of the problem. Congress plans hearings to investigate the delay.

Loyal consumers

"This is embarrassing for us to have this kind of recall," said Jim Lentz, president of U.S. Toyota sales, in a conference call with reporters on Monday. "But it doesn't mean we lost our edge on quality."

Consumers seemed to agree, as more than a dozen people responding to an informal Chronicle e-mail survey said they still trust Toyota and will stick with the brand - with the significant exception of people who actually had experienced a problem.

"I think the hysteria over the recall is getting out of hand," wrote Claire Horn of Tiburon. "I own a 2006 Toyota Highlander whose gas pedal has never misbehaved. In fact, I love the car."

But analysts and automotive experts were harder to convince.

"On the communications side, Toyota didn't live up to its standards," said Rik Paul, automotive editor of Consumer Reports in Yonkers, N.Y. On Friday, the magazine, which has long championed Toyota vehicles for their performance and reliability, temporarily suspended its recommendations for the eight recalled cars. "There was so much confusion surrounding this on both the consumer and dealer level that fed into consumer fears. That probably hurt their reputation as much as the defective part."

Some lose trust

Customers who had experienced problems said they had lost trust in Toyota.

Aaron Bennett drives his 2008 Prius 40 miles each way from his home in Cloverdale in Sonoma County to Navarro Vineyards, the business he co-owns in Philo (Mendocino County). Last summer, he experienced "sudden and unexpected acceleration while passing on a two-lane highway," he said.

He was able to stop by pushing hard on the brakes and pulling off to the side of the road. His dealership insisted there were no mechanical problems, he said. The Prius was involved in an earlier Toyota recall for a problem with floor mats trapping the accelerator; it is not involved in the current recall.

"It has certainly affected my decision to purchase a Toyota again," Bennett said. "I feel that both recalls are red herrings for a larger issue they either can't figure out or are unwilling to own up to."

Dealers, who of course depend on Toyota for their bread and butter, said their customers remain loyal.

"Most people have been very understanding and know that Toyota is still a good company," said John Horton, owner of San Francisco Toyota, and a 40-year veteran of selling and servicing the cars. "I haven't talk to anybody that's freaked out." Of 300 cars on his lot, 90 are currently segregated because of the recall.

Brad Barnett, general manager and co-owner of One Toyota of Oakland, a gigantic dealership that opened for business on Monday, after buying and rehabbing its site near the Oakland Coliseum and hiring more than 100 workers, said he sees the current situation as an opportunity.

Making things right

"I know Toyota will do everything they can to make sure the customers are taken care of," he said. "We expect a field technical supervisor to train the (mechanics) probably this week. We have 51 bays so have a lot of capability - technicians, space, time - to help people quickly and efficiently. We only have 68 vehicles out of 300 that are on the stop sale list."

Michelle Kreb, a senior analyst in Detroit with car-buying site Edmunds.com, said she expects Toyota's sales - which will be announced today - to suffer a significant impact.

"We think their market share will be the lowest since 2006," she said. "As long as the stop sale continues, we think they'll lose about 75 percent of their sales. It won't be lifted all of a sudden one day but just as dealers fix those models in their inventory."

Toyota recall

For information about the gas pedal recall, go to www.toyota.com/recall or call (800) 331-4331.

Toyota says car owners should wait to call their dealers until they receive a letter from the company. Owners experiencing accelerator issues should call immediately. Toyota recommends firm, steady pressure on the brakes - not pumping them - in the event the accelerator sticks.

The vehicles affected are North America-manufactured 2009-2010 RAV4, 2009-2010 Corolla, 2007-2010 Camry, 2010 Highlander (RAV4, Corolla, Camry and Highlander vehicles with vehicle identification numbers beginning with "J" were made in Japan and are not affected by the recall); and all 2009-2010 Matrix, 2005-2010 Avalon, 2007-2010 Tundra, 2008-2010 Sequoia.

Doing the right thing.

Dealers React Optimistically to Toyota Recalls ALEXANDRIA, VA (January 27) – American International Automobile Dealers Association Chairman Russ Darrow today issued the following statement on Toyota Motor Sales, U.S.A.’s decision to halt the sale and production of eight of its most popular vehicles. The decision was based on reports of a problem related to the vehicles’ accelerator pedals. “AIADA fully supports Toyota’s decision to prioritize the safety of its customers, and other drivers on the road, ahead of all other considerations. Throughout this process, Toyota has remained committed to consumer safety and product quality – the foundation of its business. Toyota’s dealers are prepared to weather this short-term challenge in order to preserve their customer’s safety and trust. Toyota is communicating openly and honestly with its dealers and we are confident that, in the long run, this decision will only increase the loyalty of its customers.” 1/27/2010 Copyright 2010 © AIADA. All rights reserved. Privacy Policy

Toyota unveils new Sienna minivan at LA Auto Show

By ALEX VEIGA
AP BUSINESS WRITER

LOS ANGELES -- Toyota unveiled new versions of its Sienna minivan at the Los Angeles Auto Show on Wednesday, with an eye toward capturing a bigger slice of the minivan market.

The Sienna is currently lagging behind the top-selling Honda Odyssey, Dodge Caravan and Chrysler Town and Country. Toyota sold 75,509 Siennas in the first 11 months of this year.

Even if the Sienna grabs a larger piece of the pie, that pie has been shrinking. Minivan sales, already on a downward trend as families gravitated to crossovers and SUVs, fell 32 percent through November. Ford Motor Co. and General Motors Co. have pulled out of the minivan market altogether.

That isn't deterring Toyota.

"Other manufacturers have been leading this segment and we see an opportunity," said Bob Carter, group vice president and general manager of Toyota Motor Sales USA Inc. "We believe the minivan is poised to rebound and young families will lead the way."

The 2011 Sienna is the third-generation of the model and Toyota packed the new design with features that it hopes will set the Sienna apart from other vehicles in its class.

Among the fancier options available are dual-power sliding doors, a panoramic rearview camera monitor and a 16.4-inch flat-screen television that flips open from the ceiling. Passengers can view a movie on the full screen or go into a split-screen setting and view a movie on one side while playing a video game on the other.

The Sienna boasts wider doors than previous models and can accommodate up to eight passengers. The second-row seats can be shifted forward behind the front seats, and the third-row seats can be stowed flat, creating a cargo-carrying area that's about eight feet long and four feet wide, Toyota said.

Sienna will be available in five variations, including a sporty SE and a high-end Limited edition. Toyota is offering two engine types for the Sienna - a 2.7-liter, four-cylinder engine or a 3.5-liter, 266-horsepower V6.

The Sienna hits showrooms in February, although Toyota won't say yet what its starting price will be.

Carter noted it will be priced lower than the current model, however. On the company's Web site, the Sienna is listed as starting at $24,540.

2010 Best Resale Value Awards

http://www.kbb.com/car-awards/best-resale-value-awards

While most car buyers today consider sticker price the most significant number when choosing a new vehicle, our editors recommend taking a closer look at a number Kelley Blue Book is expert in calculating: its resale value. Depreciation often is the greatest expense incurred by drivers during the first five years of vehicle ownership, so choosing a vehicle that retains its value better than others is important in keeping your total ownership cost low. The Kelley Blue Book Best Resale Value Awards recognize automakers' outstanding achievements in producing vehicles that best retain their value. In addition to the mainstream and luxury brands with the best projected resale values across their entire vehicle lines, awards are presented to top vehicles within 16 vehicle categories and for the overall top 10 vehicles across all categories.

Best Brand – Toyota
Best Luxury Brand - Lexus
Best in Category Mid-Size Pickup: Tacoma
Mid-Size SUV – Highlander
Hybrid – PRIUS