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Toyota to boost incentives to stop sales slide

05/04/2009, 2:19 PM

By Drew Johnson

Toyota was knocked out of its cushy spot atop the automotive industry by both Ford and Chevrolet during the month of April, but the Japanese automaker has no intentions of giving up without a fight. Toyota is planning a new wave of customer incentives, with the hopes of once again nabbing the top U.S. spot.

Toyota’s sales decreased 41.1 percent last month – ahead of the industry average of 34 percent — but the Japanese automaker will launch a wave of incentives to bolster sales in the coming months, according to Automotive News. Additionally, Toyota will boost production of its Camry sedan and RAV4 SUV, two of its most popular models.

“We’re confident we will grow market share through 2009,” Bob Carter, division general manager, told Automotive News.

Dubbed “Perfect Timing”, the new sales campaign will offer buyers bigger incentives and interest rates as low as 0 percent. Details of the event remain unknown, but the sales event will run May through August and cover virtually every new Toyota model.

Carter didn’t elaborate on how much Camry and RAV4 production would increase, but added current supplies were at 58-days, or slightly below normal levels.

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05/04, 2:28 PM

posted by:

CADDY-V

Hey 111 guy

Is a move like this going to hurt the resale value of there cars?

05/04, 2:30 PM

posted by:

carstuff

I still would like to know why Toyota is bombing out. Is there any real reason?

05/04, 2:31 PM

posted by:

JakeK66

I’m going to guess these rebates still won’t be enough for me to ever consider a Toyota product. I mean, their going to rebate the Camry a whole $2,000? Whoopdedoo!!! That means the Malibu will only be 5 grand less instead of the usual 6 grand.

Toyota, like Hyundai-Kia, is into the rental car business more than ever, go look at a local rental car branch and see what models are on the lots, you’ll see alot of Highlanders/Rav4s/Corollas/Camrys now meaning that it’s going to be killing their usually high trade-in values in the very near future.

Buy a Honda and keep you’re pride and residual value intact.

05/04, 2:36 PM

posted by:

mayer_ray_nagin

This can’t be. Kaizen the Toyota genius said in the monthly sales thread that the sales problem was that Toyota’s sales were way down because their products were in such high demand that they were out of supply and production couldn’t keep up.

How’s the Kool-aid, Kaizen?

05/04, 2:47 PM

posted by:

Nesodian

Toyota’s are just so dull and boring. Whenever I see someone driving a Toyota, I just assume they too are dull and boring.

05/04, 3:01 PM

posted by:

Lariat Luxury Locomotive Liner No.3

Toyota’s and Lexus’ lineup are simply ugly vehicles. Add boring to that too.

05/04, 3:09 PM

posted by:

Borat

Jake, I am Honda connoisseur just like you appear to be. But in Toyota’s defense, they had enjoyed sky high resale values for 20 years in US (and even higher in Europe) and given the circumstances that there are not many takers for their high priced vehicles: Avalon, Highlander, new Venza why not dump them into rentals today and worry about resale values after Domestics finish with their respective Chapter 11 or 7? I don’t think rentals would even accept (at any cost) Chrysler and Pontiac cars today and guess what was staple of rentals in good old days?

05/04, 3:11 PM

posted by:

l.sanchez

Its amazing how quiet all the import band wagoner’s are. Now that they are actually producing more cars, the demand for Toyo’s has gone down. And they wonder why the resale value of the cars was stronger than US cars. Well, thats one factor. More supply of American cars.

And yes, 0% financing and bigger rebates means the resale of those said toyotas will also be taking a hit. Always does. Great for the buyer, bad for the seller.

05/04, 3:55 PM

posted by:

johnnycanuck

“Perfect Timing”: that would be when you get stuck behind the schmuck in the Prius whose speed in the left lane perfectly matches that of the Octogenarians in the Avalon in the right lane as you’re trying to get home in time for the start of the hockey game. Oh well, good thing there’s that other lane because if that doesn’t constitute an emergency I don’t know what does.

05/04, 4:06 PM

posted by:

orangecones

Nothing on the road bugs me more than a prius driver (buick and old caddy’s are in a near-2nd), I guess my road-rage levels will increase shortly because of this. Due to economic conditions used car values are through the roof right now, so it may actually be in Toyota’s benefit to offer some new car incentives right now.

05/04, 4:11 PM

posted by:

mikemaj82

Toyota’s probably bombing out because of the crazy incentives on American cars lately. Did you see Ford and Chevy sales this month?

05/04, 4:43 PM

posted by:

tripleonefive

“Is a move like this going to hurt the resale value of there cars?” No, because unlike your precious GM, Toyota make a quality product that lasts. Even if it were the resale is still higher than anything GM has.
Is the Malibu recall going to affects its already low resale?Are the discounts and rebates going to affect it ?Are the closing of Pontiac, Saturn and Hummer going to affect their resale ????

“still would like to know why Toyota is bombing out. Is there any real reason?” Well its basically people with anti Japanese sentiment like Caddy V who are mad at Toyota for kicking D3 in the ass with reliabibility and quality for the last 20 plus years and counting. They really should be upset at D3 for making POS after POS and selling patriotism instead of a quality car

Toyota’s probably bombing out because of the crazy incentives on American cars lately. Did you see Ford and Chevy sales this month?
Good point they are practically GIVING these POS’s away They sell to people who already have an american pile though. The only company taking sales from Toyota or Honda may be Hyundai

05/04, 4:54 PM

posted by:

shaver

^^LOL precious GM precious Ford LOL blah blah resale value LOL recalls blah blah blah LOL Only Koreans can compete with the Japanese LOL Rascists so on and so forth and resale value.

05/04, 4:57 PM

posted by:

CADDY-V

111GUY:
I’m only going to stick up for GM on this one I’ll let someone else speak for the other D2. Go take a look at motortrend.com and look at the review they did today on the CTS-V and M5 battle and then tell me that GM makes pos cars. If you want me to save you some time the CTS-V won all the way aroun and for 30K less in my pocket.

As for the rest of the stuff you said I’ll also let someone else handle that. I know there will be a few guy’s that will have something to say about your oneside comments.

05/04, 4:59 PM

posted by:

CADDY-V

That’s 30K more in my pocket

05/04, 5:05 PM

posted by:

shaver

Caddy^^
Dont waste your time with 111robot. You read motortrend and automobile, he reads CR and JD power like they are bible. I think he is the 12yr old son of an CPA.

05/04, 5:21 PM

posted by:

shaver

LLN reports about Toyota are always so postiive? Not a single negative phrase in the whole thing what gives?
“no intentions of giving up”
“a new wave of customer incentives, with the hopes”
“41.1 percent last month – ahead of the industry average of 34 percent ” (Yeah there so good they are even ahead on the drop in sales.)
“Toyota will boost production, Perfect Timing”

Translation, they just got out sold by not just GM, but Ford for the 1st time in 1-2 years. So they are doing what GM and Ford used to always do. Push forward with unprecedented incentives. Things are really bad Toyota is going to start pushing and giving incentives on some of its low profit units too least drive its numbers up for the board and shareholders.

Happy happy joy joy.

05/04, 5:22 PM

posted by:

blue1996

you guys get down on the domestics jd power picks buick and jag over toyota and the rest of the imports then does anybody ever consider how many people are losing jobs not because of just the big three but because we as americans let companys import there products here to the united states and as americans we think its a better product but we forget that it is are fault that we do not have jobs here in the states and there was a big article on how toyotas values have fallen maybe the rentals or just maybe the economy either way all car companys are in trouble

05/04, 5:48 PM

posted by:

CADDY-V

111GUY
“The only company taking sales from Toyota or Honda may be Hyundai”
you can also check motortrend.com and see that today kia recalled 139,844 cars.
Doen’t kia and hyundai have some kind of relationship?

05/04, 6:47 PM

posted by:

orangecones

Caddy-V, what about the 1.5 MILLION cars GM recalled 3 weeks ago? Yeah, I bet you weren’t gonna mention those recalls. Recent Buick success aside (mind you that is 1 product coming from 1 assembly plant) whats wrong with the rest of GM? Why are all their other cars (few exceptions aside) pure rubbish? Also lets remember customer memory is long. After 20 odd years of worthless rustbuckets, it will take time for people to once again equate GM with a quality product.

05/04, 7:51 PM

posted by:

DrFill

Playtimes over boys!

At 16%+ market share, Toyota is hardly falling on it’s face, but a bridge to the 2010 Prius, and the 2010 model year, should stablize the sales slide, and net a small market share gain by year’s end

Prius sales are definitely down, as the market awaits the 2010 model. Gas prices have hurt, but the new model will get 15k units a month by the fall.

Anyone see the Inside Line full-size truck comparison?
DrFill

05/04, 8:20 PM

posted by:

blue1996

rust buckets what about toyotas trucks that you can poke a hole through the frame with a small hammer and then the rest of the truck collapses come on mister orange cones

05/04, 8:36 PM

posted by:

sj79

DrFill:

The new Prius isnt hardly enough to stop the sales slide. Please join us in reality. Lexus sales have been declining since early 2008 so this is not a recent trend. Toyota has been doing worse than Nissan and Honda for many months now so something is going on here. I would think it has to do with their stale lineup and lack of incentives. The only think that will get the Prius to 15k units a month is $4/gallon gas which doesnt appear to be on the horizon. Do you really think people are going to be storming Toyota dealerships for a car that gets 2mpg better mileage than the current one? I dont.

Orangecones:

The cars that were recalled have been out of production for a while, that is hardly recent product and thaqt latest recall only helps GM keep pace with Toyotas recalls. All manufacturers have recalls. Turning the attention to a GM recall does nothing to explain why Toyota is turning to record incentives even though fanboys have claimed for years that doing so hurts resale value.

As for GM and quality, the fact that they continue to outsell Toyota and outperformed them last month shows that some people think GM makes a quality product. In fact, more Americans buy GM than Toyota every month. Thats the way its been since Toyota entered the US marker 50 years ago.

Shaver:

You are correct. This story attempts to make excuses for Toyota and the coverage of the incentives is very different than it would’ve been if this was a domestic company. Toyota isnt portrayed as desperate, just savvy. Also, no explanation is given for why Toyota is increasing production when sales are down 42%. That makes no sense. An increase in incentives will help somewhat but EVERYONE is discounting and Toyota has no plan lke Hyundai or Ford or GM to ease customer fears of losing a job. They think they are too good to compete on that level and they will pay the price.

05/04, 8:47 PM

posted by:

sj79

Dr.Fill:

Just checked out that comparison and its what you expect from IL. Dumping on domestics and shilling for mediocre Toyota products. The Silverado beat the Tundra in every single category and finished 3rd. They made no mention of the Toyota’s dime store interior and chastised the Silverado for lacking an ipod integration feature even though the Tundra lacks one as well. Only at IL can a Toyota product get beat in every way but get 2nd place because it has a backup camera and towing mirrors. I would love for IL to explain how the Silverado got demerits for its interior when the Toyota did not. Crazy.

05/04, 10:43 PM

posted by:

orangecones

First guys, I’d like to refer you to the Top Gear Toyota Hilux test as a reference to brand quality (irrelevant in every way, but whatever). Secondly @sj79……sales figures don’t equal “customers associating it with quality”. For instance, for one reason or another rural America prefers GM or Ford products for one reason or another, maybe they are more patriotic, or because their daddy had one (childhood memories can be strong triggers to do things in adulthood), because they have less disposable income (GM and Ford cars are generally a bit cheaper), because of dealer locations (more GM and Ford dealers established in rural areas selling trucks, vs import dealers being mainly in bigger cities). If you would notice that in urban areas (especially north of the Mason-Dixon), the GM:Toyota ratio is a lot smaller. But yes, urban americans also buy GM and Ford products, a good portion of them perhaps because it is one of the better choices in a particular class, maybe being patriotic or because its the closest dealer to your house, maybe some other reasons.

That said, my original point of buying =/= believing something is good quality. Buying means (in most cases) you get the most perceived value out of the product. In my household, we have a Nissan (Rogue which replaced an Altima), and we have a Daewoo (which replaced a Corolla). We knew Daewoo was dead as a company (bought it in 03, last year of production was 02), and that quality would be marginal at best, but at the time we just needed a new cheap car to be a daily driver (car is still alive with 78k mi)….that was our value. As for the Rogue, we got it for 2 reasons: because we like how Nissans perform on the road, that sporty feel….and because we really liked the design….from the Altima experience we knew Nissan quality is only marginally “above average” (we ditched the Altima @ 93k mi due to developing tranny problems)…. so many people are buying GMs maybe because it gives them reasonable transportation at relatively low coin, or because of some other characteristic of the car that isn’t quality (say driving feel…. i for one disliked every single GM car i ever drove….including the new Malibu).

05/04, 10:48 PM

posted by:

tripleonefive

“he reads CR and JD power like they are bible. I think he is the 12yr old son of an CPA.”

Please show me where I have EVER praised JD Powers or Consumer Reports You obviously dont read my posts

05/04, 10:49 PM

posted by:

Impulsive

When will this company produce something DESIRABLE?

Everything it makes, I have ZERO interest in. And no incentive will change that.

05/04, 10:53 PM

posted by:

tripleonefive

30 K in your pocket but you are driving a GM lol
Have fun when it breaks down The axle assembly in the rear is bad with the CTS

Thats have fun when it breaks down !

05/04, 11:51 PM

posted by:

DrFill

SJ
That’s easy
The Tundra won the towing test
Cost less
Had more features
Tundra whupped it last year
This was closer, but it’s not enuf, and it’ll never be enuf!

If soft ride and nice interior were all that mattered, the last Tundra would’ve won every test
Tundra is The Beast from The Far East (by way of San Antonio)
Deal with it!

BTW, they put the Malibu over the Camry in a recent comaprison, so save the drama for your Momma!
They do better comparisons than C&D, MT and R&T combined
DrFill

05/05, 1:18 AM

posted by:

fordman

I wonder what 111Fag thinks of this!

05/05, 10:08 AM

posted by:

sj79

DrFill:

You sound like a middle schooler. The Tundra didnt have MORE features. They chose to focus on the features it had that the Silverado lacked but didnt consider Silverado features not found on the Tundra. Typical inconsistency from IL. The Silverado beat the Tundra in EVERY category except one and has a better interior and is more fuel efficient in spite of having class leading hp. A truck like that does not belong in 3rd place. The main reason the Tundra won before was because it had the better powertrain. This time the Chevy had the better powertrain. Your excuses are lame as was IL’s justification of the Toyota’s placement. C&D didnt even bother including the Tundra in their last comparison because its a nonfactor in the segment. Beast from the East? Are you serious? Have you seen the sales results?

05/05, 10:14 AM

posted by:

CADDY-V

111BUB
“30 K in your pocket but you are driving a GM lol
Have fun when it breaks down The axle assembly in the rear is bad with the CTS ”

You for once our right it is a GM, and it will kill any j3 “luxury” car you put up against it.
As for the rear end thing that was in the vert first CTS-V. witch didn’t have that many cases, and was over 5 years ago. Probable as many people that had the CTS-V problem as people that had there transmmisions blow up on them on the new gt-r.

Now tell me did you even read the article and see the new 09 CTS-V smoke the new 09 M5? If you didn’t it happened. You can’t keep lying to yourself the CTS-V is a beast.

05/05, 12:52 PM

posted by:

ricky_b

I think Toyota makes very well engineered and built vehicles, but… everyone I’ve ever driven felt like it would be great for someone who doesn’t care about the driving experience, they just want to be comfortable and isolated. I enjoy the actual driving experience and that’s what Toyota is not about. Can’t speak for others who have turned down Toyota, but that’s my take.

05/05, 3:31 PM

posted by:

jackjimturkey

“Toyota was knocked out of its cushy spot atop the automotive industry by both Ford and Chevrolet.” That doesn’t say what you

think it says, LLn.

CADDY-V: “Hey 111 guy
Is a move like

carstuff: “I still would like to know why Toyota is bombing out. Is there any real reason?”
I might say it’s because you can get a better car for less, but that’s been the case for years. Sales are down for everybody, but it

looks like those few who are buying are looking for value.

JakeK66: ” … That means the Malibu will only be 5 grand less instead of the usual 6 grand.” exactly.

“Buy a Honda and keep you’re pride and residual value intact.” Yeah, a honda motorcycle. Not sure what the theoretical resale value

is on those, but who cares. I bought a Kawasaki, but the Honda is a strong product.

Nesodian: “Whenever I see someone driving a Toyota, I just assume they too are dull and boring.” Not to mention easily fooled.

Especially those buyers of faux-luxury toyotas.

johnnycanuck: WTF happened in Beantown?

tripleonefive: ““Is a move like this going to hurt the resale value of there cars?” No.”
What?

“’still would like to know why Toyota is bombing out. Is there any real reason?’ Well its basically people with anti Japanese

sentiment like Caddy V who are mad at Toyota for kicking D3 in the ass with reliabibility and quality for the last 20 plus years and

counting.”

Uh, no. Those people were never buying toyotas. The qustion should be, why are people abandoning toyotas?” I know why I

abandoned toyota.

If Ford and GM are giving PsofS away, their doing so at the used lots.

” The only company taking sales from Toyota or Honda may be Hyundai.” You read this article?

CADDY-V: “Go take a look at motortrend.com and look at the review they did today on the CTS-V and M5 battle and then tell me

that GM makes pos cars.” It’s a waste of time. Anybody who believes GM’s making crap is ignoring reality. No matter how much

evidence you stack up, you’re not going to change their minds. If a CTS gets to 400,000 miles, that’s proof that GM can’t even make

an odometer right.

orangecones: “Why are all their other cars (few exceptions aside) pure rubbish?” Why are the Pittsburg Steelers such a crappy

team/

“Also lets remember customer memory is long. After 20 odd years of worthless rustbuckets, it will take time for people to once

again equate GM with a quality product.” Well, here, you’re talkin’ sense.

DrFill, Blue 1996, sj79: nobody who does real work will use a toyota truck.

“All manufacturers have recalls. Turning the attention to a GM recall does nothing to explain why Toyota is turning to record

incentives even though fanboys have claimed for years that doing so hurts resale value.” That’s pure sense.

orangecones: “sales figures don’t equal ‘customers associating it with quality.’ You’re right. Think about that.
“For instance, for one reason or another rural America prefers GM or Ford products for one reason or another, maybe they are more

patriotic, or because their daddy had one (childhood memories can be strong triggers to do things in adulthood), because they have

less disposable income …” Any of these reasons, plus the quality, especially with trucks.

“GM and Ford cars are generally a bit cheaper.” no, they generally cost less.

Impulsive: “When will this company produce something DESIRABLE?” When you move to japan. Their JDM products generally don’t suck.

DrFill: What were they driving at the San Antonio construction site? Hint. Not what they would build there.

sj79: How do you figure the Tundra had the better powertrain?

.

CADDY-V: the CTS-V is just as good as anyone else’s luxury sport sedan.

05/05, 7:48 PM

posted by:

DrFill

SJ
The only thing that’s lame is you, and your fantasies of bias

Whether you like it, or don’t like it
Learn to love it

WAAAAH!
Tundra whupped my ass again!
WAAAAAH!

Ford and Chevy to the back of the pack
Tundra will tow you home
LOL!
DrFill

05/06, 12:16 AM

posted by:

Kaizen

Mayer: Actually what I said was that core models are trending low on supply. I said that Toyota cut their production levels to the point where they are undersupplied on core models. I also said that key minor and major models changes on core models on Camry, RX and Prius are hitting the marketplace now, and that throughout the year Toyota will have to carefully manage sell down and production to ensure that sales don’t stall due to lack of production. I also said that Toyota wasn’t competitive on incentives. If anything I said was incorrect here, spell it out. I’m a big boy; I can handle an intelligent conversation just fine.

 
 
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