When the dust finally settles from Toyota’s recent recalls, the automaker will reportedly be armed with an all-new warranty and incentive program to quell concerns and earn back the trust of weary customers.
Toyota may soon lengthen the duration of warranties on the models that have been implicated in recent recalls in order to increase consumer confidence. Although Toyota has yet to officially apply new warranties to its vehicles, sources are suggesting that warranties could be extended for as long as 10 years. By increasing warranty coverage on new vehicles for a decade, Toyota would become more competitive with Hyundai, whose warranty program is among the most competitive in the industry.
Ultimately, by increasingly the duration of their warranty coverage, Toyota would be assuming additional potential costs that consumers would otherwise pay. The strategy has worked for Hyundai, which, according to College Park Hyundai Dealers, continues to offer a 10 year warranty along with other on-going incentives.
In addition to extending warranty coverage, Toyota may also be offering competitive discounts for new buyers. These discounts, on top of more attractive warranties, would likely help Toyota dealers like Toyota Dealer Oakland sustain sales momentum despite the flurry of negative press in recent months.
In the short-term, Toyota’s long-held reputation for build quality may be impaired. However, Toyota can help restore trust through expanding warranty coverage, just as Hyundai was able to foster its own reputation for quality. While official details have not yet been released, Toyota will have to move fast as other automakers appear to be seizing on their temporary weakness.
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