Any recall can become costly for an automaker, but Toyota’s recall of 8.5 million vehicles worldwide will likely be especially costly when the dust finally settles.

In early February, Toyota estimated that total costs of the recalls would be around $2 billion. But as the month unfolded, falling sales ensued and that number quickly seemed to be conservative.

“We expect Toyota to respond aggressively to win back much of its lost market share, but it will come at a cost,” said Kurt Sanger, an analyst with Deutsche Securities.

Toyota is betting that short-term momentum will be regained by offering 0 percent financing as well as two years of free maintenance to existing customers that come back to the brand and purchase a new Toyota. These incentives will also come at a cost, but Toyota asserts that their incentives are costing far less per car than competing brands with similar offers.

Aside from slumping sales and falling market share, Toyota has to contend with the 89 class-action lawsuits that could cost the automaker over $3 billion.  While the picture does appear to be grim, there’s still light at the end of the tunnel. Although sales have certainly taken a tumble, the automaker has reported that sales jumped at the start of the month thanks to its March Sales Event. These same incentives might even be extended if they prove to help the embattled automaker move forward.

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With final March sales figures still a few weeks away, reports have suggested that Toyota’s March Sales Event has already helped the embattled automaker regain lost momentum. As a result, Don Esmond, senior vice president of Toyota U.S. Sales, suggested that the current incentives might be extended.

According to Esmond, U.S. sales increased by 40 percent in the first 10 days of March. This is a huge gain following the dismal drop in February sales. Among the incentives that helped garner this huge gain is 0 percent financing on most 2010 models.

Before Toyota makes its decision whether to extend this month’s offers, it will first evaluate its impact on customers and dealers.

“I think we will have to take a look at results and reevaluate, but the promise I made to dealers was that we will continue to make them competitive,” Esmond said.

Despite offering unprecedented discounts, Toyota is still saving more money per car than GM and other automakers that are also offering incentives this month. Toyota’s incentive spending averaged $1,833 per vehicle while GM’s cost per vehicle is about $3,434.

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When something goes terribly wrong in the automotive industry, leave it to late night television to add fuel to the fire. For example, when the Big Three were on Capitol Hill, SNL ran a number of skits featuring a bumbling Bob Nardelli, Alan Mulally, and Rick Wagoner, as they requested federal bailout dollars.

Fast forward to the present and it’s no longer the Big Three consumed by late night jokes, but rather Toyota due to the company’s sweeping recalls. On the Late Show with David Letterman, a mock Toyota CEO Akio Toyoda was featured and he profiled the real problem at the center of the issue – American drivers. SNL also took their shots at the embattled automaker, and jokingly promoted Ford hybrids in the process.

Although unintended acceleration is no laughing matter, the late night jokes are nevertheless all in good fun. Already other comedians from Jay Leno to Jon Stewart have also poked fun of Toyota. But as problems become more widely understood and repaired, time will only tell what brand will be next to face the wrath of late night.

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With constant media scrutiny surrounding unintended acceleration, Toyota has released videos concerning the issue, and how to prevent it.

Sticking accelerators and runaway vehicles are not exactly common occurrences, but they’ve no doubt become events that concern consumers nevertheless. That’s why there are two new videos designed to held drivers stop their Toyota vehicles just in case this unexpected issue strikes.

Interestingly, the video below may also debunk the now infamous claim by James Sikes, whose Prius unintentionally accelerated out of control last week.

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Despite a spike of complaints surrounding unintended acceleration in 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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