Despite a spike of complaints surrounding unintended acceleration in the Toyota vehicles, the automaker is still managing to keep consumers in showrooms thanks to substantial incentives.

Toyota’s March Sales Event has reportedly helped boost sales in the first several days of the month according to Don Esmond, senior vice president of automotive operations for Toyota Motor Sales. Although specific details of this month’s sales haven’t been disclosed, Esmond says the numbers have surpassed expectations in light of Toyota’s current struggles.

Toyota has come a long way in fixing its mistakes. Not only have top executives owned up to their shortcomings during congressional hearings, but faulty pedals and improper floormats have been repaired or replaced in millions of vehicles. Unfortunately, due to Monday’s news of police slowing down a runaway Toyota Prius, new problems aren’t going away and the automakers’ electronics may become the next issue.

According to some experts on consumer psychology, the most recent spike in complaints may partially involve psychological factors rather than the cars themselves. With incessant negative media scrutiny, some may be wondering if there’s a human component behind unintended acceleration events.

“When people expect problems, they’re more likely to find them.” said Lars Perner, a professor of clinical marketing at the University of Southern California.

Until the media buzz surrounding the Toyota and unintended acceleration simmers down, Toyota aims to make buying a Toyota product as attractive as possible. Not only can consumers take advantage of 0 percent financing on most models, but existing Toyota owners who buy another vehicle from the company will also receive two years of free maintenance. And, as new Toyotas continue to receive awards and accolades, it may very well be the best time for those considering a new car to consider all their options.

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Toyota may finally begin operating its new plant in Mississippi in June of 2011 according to Japanese news sources. This is one of 10 assembly plants in the US, which together employ 33,400 workers and indirectly fuel another 160,700 jobs.

The Mississippi-based plant was originally intended to begin manufacturing operations in the second half of 2010. In 2008, Toyota had stopped work on the new plant, which was intended to build the Prius hybrid, due to declining auto sales in North America. With auto sales picking up again, Toyota may finally be making this plant operational.

Despite sales momentum this year for many automakers, Toyota has not been so lucky. With its reputation in tatters, the automaker has experienced a drop in sales and profits. Meanwhile, Mississippi has been pressuring Toyota to start the plant as the state is suffering from a 10.6 percent unemployment rate. With new jobs and renewed operations, the plant’s opening could provide a modest public relations boost as the automaker works to regain the trust of American consumers. Unfortunately, if sales remains stagnant, the lights at this plant may remain off for quite some time.

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Toyota’s FT-86 Concept is still a long way from showrooms, as it’s scheduled to enter production in 2012, but all-new pics of the upcoming sports car may indicate that its future looks promising.

Shown off along side the Celica, MR2, Supra and the Corolla AE-86, the Toyota FT-86 should be a continuation of Toyota’s performance heritage. Since the demise of the MR2, Toyota has been without a true sports car within its lineup. If the FT-86 stays on its path to production, it certainly could help to improve the brand’s image, particularly among Toyota enthusiasts.

The FT-86 possesses the same qualities that made the Corolla AE-86 a successful sports car, such as rear-wheel drive, light weight, strong power to weight ratio, and a well-balanced chassis. The car also draws parallels to Toyota’s past rallying and circuit racing models.

When it arrives, the FT-86 is expected to be powered by a 2.0-liter four cylinder engine developed by Subaru that produces around 200 horsepower. It should feature a sticker price just over $20K.

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Press release:

FT-86 Sports Concept captures the spirit of celebrated Corolla AE-86

KEY POINTS

* FT-86 Sports Concept, Toyota’s vision for a future sports car
* European debut at Geneva motor show
* Designed and engineered to capture the spirit of the renowned Corolla AE86 of the 1980s
* Front-engine, rear-wheel drive format
* Lightweight, compact and aerodynamically efficient body

Celica, MR2, Supra, Corolla AE86: Toyota’s great driver-focused sports cars of the past have inspired its vision for a future-generation concept model that makes its European debut at the Geneva motor show.

In creating the FT-86 (Future Toyota-86) Sports Concept, Toyota has directly referenced the excitement and fundamental fun-to-drive quality that characterised the Corolla AE-86. In its day the AE86 became a must-have model for rallying and circuit racing, with its front-engine, rear-wheel drive powertrain, compact dimensions, light weight, impeccable balance and strong power to weight ratio. Even more than 20 years on from the end of production, it remains a popular choice with privateer rally teams.

The FT-86 Sports Concept previews a new-generation Toyota sports car, designed to recapture the spirit of the AE86, sharing its front-engine, rear-wheel drive credentials.

Driver-oriented concept

The FT-86 is designed to deliver simple, dynamic power with environmental responsibility. It is an entirely driver-orientated car, engineered to capture the intrinsic joy of driving through precise, instantaneous responses to even the smallest throttle and steering inputs.

Rather than use a heavy, large displacement engine for performance, it is equipped with a free-revving 2.0-litre petrol unit with a six-speed manual gearbox with compact dimensions, light weight and a low centre gravity. Deployed in a front-engine, rear-wheel drive format, this powertrain delivers lively, accessible performance with engaging dynamic abilities and maximum driving pleasure.

Functional Beauty

Toyota’s ED2 European design and development centre dubs the styling of the FT-86 “Functional Beauty”, the classic sports car form having been generated entirely within the constraints of aerodynamics and function.

The low, highly aerodynamic bodyshell is stretched tight over the engineering hard points, and, measuring 4,160mm long overall, the bodywork has been rendered as compact as possible.

The cockpit is purely functional and ergonomically efficient, with widespread use of sporting, ultra-lightweight components and finishes that support the car’s balanced weight distribution and power to weight ratio.

Rather than treating the 2+2 interior design as a stylised addition to the cabin framework, a thin, tight-fitting skin has been applied to the essential cockpit components, as can be seen in the treatment of the dashboard and seat upholstery

The FT-86 measures 4,160mm long, 1,760mm wide and 1,260mm tall, with a 2,570mm wheelbase. It rides on 19-inch wheels shod with 225/40R19 tyres.

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While other automakers are reporting increased sales for the month of February, Toyota’s sales figures were a little less than stellar. Not only have Toyota’s recalls scared potential car buyers away, but other automakers are offering incentives that are specifically preying on the concerns of current Toyota drivers. In an attempt to move sales momentum in the other direction, Toyota is now offering a nationwide incentive plan with 0% financing.

February sales were down about 9 percent compared to a year ago. With thousands of sales lost due to sweeping high-profile recalls, Toyota is desperate to hold on to sales by offering 0% financing for as long 60 months on eight of the automakers’ most popular models. Customers can also opt for a low-payment lease deal on certain models as well.

Helping get the word out about Toyota’s latest incentives is a print and TV marketing campaign that features real-life Toyota customers. Unlike other automakers that offer cash incentives, reduced interest rates are preferred at Toyota since this method doesn’t tarnish resale value. But what is even more unusual about Toyota’s new incentives is that they are available nationwide.  Toyota typically prefers regional incentives over national ones, but ultimately desperate times call for desperate measures.

For additional details on the automaker’s new sales program, see the official press release below.

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TORRANCE, Calif., March 2, 2010 – Toyota Motor Sales, U.S.A., Inc. today announced plans to launch the company’s most far-reaching sales program in its history.

Starting today, through April 5, 2010, the national marketing program includes financing, leasing and customer loyalty offers.  Highlights of the program include:

• 0% APR financing for up to 60 months on 2010 Avalon, Camry, Corolla, Highlander, Matrix, RAV4, Tundra and Yaris, for qualifying buyers.

• Low lease rates on 2010 Avalon, Camry, Corolla, Highlander, Matrix, Prius, RAV4, Tundra and Venza, for qualifying buyers.  Examples include a Corolla lease for $179 a month and a Camry lease for $199 a month, although offers may vary regionally.

• Complimentary two-year premium maintenance program for customers who purchase or lease a new vehicle and provide proof of a Toyota, Lexus or Scion vehicle already registered in household, with applicable conditions.

“We launched this program to expand the focus on our customers, and thank them for their loyalty by adding value to our products,” said Bob Carter, group vice president and general manager of Toyota Division for Toyota Motor Sales, USA, Inc. “We are standing behind our customers and our vehicles.  It’s a great time to buy a Toyota.”

The marketing program will be supported by a television ad campaign from Toyota’s advertising agencies Saatchi & Saatchi and Conill LA.

The March Sales Event television ads will begin airing on March 2, and will highlight the special 0% financing for 60 months offer.  In addition, the ads will feature discussions with customers who recently purchased Toyota vehicles and reflect their feedback.  Other commercials feature Toyota dealership associates, including salespeople, customer service representatives, technicians and others, thanking customers for their support and loyalty to Toyota.

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What we’ve all been waiting for has finally arrived. Toyota just released their February sales figures, and the results are exactly what was to be expected.

With increasing scrutiny on Toyota’s recall issues not only from consumers, but also from lawmakers, sales fell a total of 8.7 percent compared to a year ago. The Toyota division saw a decrease of 10.6 percent with Lexus down 5.2 percent from February of last year.

Overall, February sales were relatively bleak, but there were some bright spots. Toyota saw a 5.7 percent increase in light truck sales led by the Tacoma. The all-new 4Runner SUV was also up by 54.7 percent compared to last year. Lexus passenger car sales were also up by 4.5 percent and Lexus light trucks were up 5.8 percent.

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Toyota has been consumed by negative press lately, but that doesn’t mean their vehicles have lost their competitive edge. The Toyota RAV4 in particular has remained one of the most successful compact crossovers since its introduction in the mid 1990s and continues to dominate the segment that it helped establish.

Wanting to continue its segment leadership, Toyota recently debuted the 2011 RAV4 ahead of the 2010 Geneva Motor Show. With its freshened design, wider stance, and more luxurious accommodations, the 2011 Toyota RAV4 is more sophisticated than ever before.

Interior design has dramatically improved, with higher quality seating surfaces and even more available features, including Toyota’s Easy Flat seating system for to make loading cargo even easier. While the improvements to the 2011 RAV4 have provided a more sophisticated look and feel, it’s important to note that Toyota has retained the RAV4’s renowned practicality and functionality.

The updated 2011 Toyota RAV4 will head to US showrooms later this year. Find additional photos and details below.

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In response to criticism that the information within black box data recorders on board Toyota vehicles was only accessible to internal sources within the company, Toyota will soon make black box decoders available to law enforcement agencies as well as consumers.

Although federal regulations have required that data found in on-board black boxes be made available to consumers by 2012, Toyota is moving to quickly to ensure such data can be accessible by 2011. This is just one of many changes that Toyota outlined to become even safer and more transparent than ever before.

While black box data has become a contentious variable in the aftermath of the sweeping Toyota recalls, some question its relevance. As these black boxes only record the last few seconds prior to a crash, some experts believe that the data will not provide substantial insights into the causes of crashes to the extent that lawmakers are hoping.

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Akio Toyoda, the President and CEO of Toyota, will testify before the House Oversight Committee today concerning the company’s decision to recall more than 8.5 million vehicles for unintended acceleration.

Yesterday, Toyota Motor Sales, USA President Jim Lentz gave his testimony, along with opening statements from Transportation Secretary Ray LaHood. Aside from Toyoda, the automaker’s U.S. chief Yoshimi Inaba will also be testifying today.

To get the live stream of the congressional hearings, tune into C-SPAN’s coverage. Also, see Toyoda’s complete opening statement below.

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PREPARED TESTIMONY OF AKIO TOYODA PRESIDENT, TOYOTA MOTOR CORPORATION

COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM

FEBRUARY 24, 2010

Thank you Chairman Towns.

I am Akio Toyoda of Toyota Motor Corporation. I would first like to state that I love cars as much as anyone, and I love Toyota as much as anyone. I take the utmost pleasure in offering vehicles that our customers love, and I know that Toyota’s 200,000 team members, dealers, and suppliers across America feel the same way. However, in the past few months, our customers have started to feel uncertain about the safety of Toyota’s vehicles, and I take full responsibility for that. Today, I would like to explain to the American people, as well as our customers in the U.S. and around the world, how seriously Toyota takes the quality and safety of its vehicles. I would like to express my appreciation to Chairman Towns and Ranking Member Issa, as well as the members of the House Oversight and Government Reform Committee, for giving me this opportunity to express my thoughts today.

I would like to focus my comments on three topics – Toyota’s basic philosophy regarding quality control, the cause of the recalls, and how we will manage quality control going forward.

First, I want to discuss the philosophy of Toyota’s quality control. I myself, as well as Toyota, am not perfect. At times, we do find defects. But in such situations, we always stop, strive to understand the problem, and make changes to improve further. In the name of the company, its long-standing tradition and pride, we never run away from our problems or pretend we don’t notice them. By making continuous improvements, we aim to continue offering even better products for society. That is the core value we have kept closest to our hearts since the founding days of the company.

At Toyota, we believe the key to making quality products is to develop quality people. Each employee thinks about what he or she should do, continuously making improvements, and by doing so, makes even better cars. We have been actively engaged in developing people who share and can execute on this core value. It has been over 50 years since we began selling in this great country, and over 25 years since we started production here. And in the process, we have been able to share this core value with the 200,000 people at Toyota operations, dealers, and suppliers in this country. That is what I am most proud of.

Second, I would like to discuss what caused the recall issues we are facing now. Toyota has, for the past few years, been expanding its business rapidly. Quite frankly, I fear the pace at which we have grown may have been too quick. I would like to point out here that Toyota’s priority has traditionally been the following: First; Safety, Second; Quality, and Third; Volume. These priorities became confused, and we were not able to stop, think, and make improvements as much as we were able to before, and our basic stance to listen to customers’ voices to make better products has weakened somewhat. We pursued growth over the speed at which we were able to develop our people and our organization, and we should sincerely be mindful of that. I regret that this has resulted in the safety issues described in the recalls we face today, and I am deeply sorry for any accidents that Toyota drivers have experienced.

Especially, I would like to extend my condolences to the members of the Saylor family, for the accident in San Diego. I would like to send my prayers again, and I will do everything in my power to ensure that such a tragedy never happens again.

Since last June, when I first took office, I have personally placed the highest priority on improving quality over quantity, and I have shared that direction with our stakeholders. As you well know, I am the grandson of the founder, and all the Toyota vehicles bear my name. For me, when the cars are damaged, it is as though I am as well. I, more than anyone, wish for Toyota’s cars to be safe, and for our customers to feel safe when they use our vehicles. Under my leadership, I would like to reaffirm our values of placing safety and quality the highest on our list of priorities, which we have held to firmly from the time we were founded. I will also strive to devise a system in which we can surely execute what we value.

Third, I would like to discuss how we plan to manage quality control as we go forward. Up to now, any decisions on conducting recalls have been made by the Customer Quality Engineering Division at Toyota Motor Corporation in Japan. This division confirms whether there are technical problems and makes a decision on the necessity of a recall. However, reflecting on the issues today, what we lacked was the customers’ perspective.

To make improvements on this, we will make the following changes to the recall decision making process. When recall decisions are made, a step will be added in the process to ensure that management will make a responsible decision from the perspective of “customer safety first.” To do that, we will devise a system in which customers’ voices around the world will reach our management in a timely manner, and also a system in which each region will be able to make decisions as necessary. Further, we will form a quality advisory group composed of respected outside experts from North America and around the world to ensure that we do not make a misguided decision. Finally, we will invest heavily in quality in the U.S., through the establishment of an Automotive Center of Quality Excellence, the introduction of a new position – Product Safety Executive, and the sharing of more information and responsibility within the company for product quality decisions, including defects and recalls.

Even more importantly, I will ensure that members of the management team actually drive the cars, and that they check for themselves where the problem lies as well as its severity. I myself am a trained test driver. As a professional, I am able to check on problems in a car, and can understand how severe the safety concern is in a car. I drove the vehicles in the accelerator pedal recall as well as the Prius, comparing the vehicles before and after the remedy in various environmental settings. I believe that only by examining the problems on-site, can one make decisions from the customer perspective. One cannot rely on reports or data in a meeting room.

Through the measures I have just discussed, and with whatever results we obtain from the investigations we are conducting in cooperation with NHTSA, I intend to further improve on the quality of Toyota vehicles and fulfill our principle of putting the customer first.

My name is on every car. You have my personal commitment that Toyota will work vigorously and unceasingly to restore the trust of our customers.

Thank you.

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With the Toyota hearings in full swing, the automaker recently released a series of webinars to discuss throttle control response in detail.

Naturally, the mechanical issues surrounding unintended acceleration can be a bit technical for the average consumer, and even lawmakers. Hosted by the automaker’s  National Environmental Safety and Quality Communications Manager, the webinars are intended to clarify the what the electronic throttle control system is and what role it plays in unwanted acceleration. Journalists were also invited to participate in the whiner and ask questions regarding the mechanics of these systems.

“These videos and animation show the confidence we have in our engine management system on all of our vehicles,” said Paul Williamsen of the University of Toyota.

Toyota’s public relations offensive continues to embrace online communication channels. With these new videos, the automaker is hoping to not only educate journalists and consumers about the mechanical complexity surrounding unintended acceleration, but to also ensure the public that Toyota vehicles are safe and that all necessary measures are being adhered to in order to prevent further dangers.

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The Toyota recall hearings held by the House Energy & Commerce Committee have officially started this morning. The Committee will be investigating the issues of unintended acceleration in Toyota vehicles and the decisions made by the management as the problems unfolded.

Although Toyota and its executive leadership will be under tough scrutiny by the Congressional committee, they will attempt to convey the automaker’s commitment to vehicle safety, even despite the controversy that’s been brewing since last fall.

“I would like to assure the Committee, and the American people, that nothing matters more to Toyota than the safety and reliability of the vehicles our customers drive,” said Jim Lentz, Toyota Motor Sales, USA President and COO, in a prepared statement.

Transportation Secretary Ray LaHood will also be making an appearance today. Tomorrow, Toyota’s CEO Akio Toyoda will testify before the House Oversight Committee.

For live coverage the Toyota recall hearings, check out C-SPAN online for the live stream.

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