Toyota to Pay Dealers to “Earn Trust” of Consumers

by Toyota in the News on February 3, 2010

With a fix now in place for recalled Toyotas, the automaker wants ensure customers get a quick fix and with a minimal hassle. While Toyota dealerships are preparing their service departments for a flood of concerned customers, they’re also getting a helping hand from Toyota, which is providing dealers with payments as high as $75,000.

Starting Wednesday, dealers will be receiving the parts and technical manuals necessary to fix the millions of recalled vehicles. Dealers are extending service hours and adding staff to better accommodate customers. Many of Toyota’s 1,200 U.S. dealers are also adding other perks and services to keep customers satisfied, such as providing complimentary car washes.

A recall of 2.3 million vehicles in the U.S. alone concerning sticking accelerator pedals has put Toyota’s reputation for quality and safety on the line. Toyota moved quickly to halt the sales of eight popular models implicated in the recall in an attempt to reassure consumers that safety remained a top priority. Unfortunately, this has stunted income for dealers and these direct payments from Toyota are no doubt welcomed through this tumultuous period.
Payments to dealers were outlined in a letter sent to dealers by Toyota group vice president Bob Carter. Dealers that sold 500 or fewer vehicles last year would receive $7,500, while those that sold 501 to 1,000 vehicles would receive $15,000. As much as $75,000 would be given to dealers that sold an excess of 4,001 vehicles in 2009.

With millions of vehicles in need of repairs, dealers are bracing for the unknown as there’s no way of knowing for sure just what share of these recalled vehicles they can expect to receive. Additional personnel have been added to service departments along with bolstered transport services for these customers to reduce inconvenience. Customer service personnel have also been added to answer phones and field questions from worried drivers.

Toyota has long been synonymous with quality and the automaker is stressing transparency to restore consumer trust. ”This is embarrassing for us to have this kind of recall situation,” said Jim Lentz, president of Toyota Motor Sales USA. ”But it doesn’t necessarily mean that we have lost our edge on quality. But we do have to be vigilant. We have to redouble our efforts to make sure this doesn’t happen again.”

Repair costs for recalled vehicles will be covered by Toyota. The fix will require about 30 minutes and involves a steel shim being added to the pedal assembly. This repair will reduce excess friction within the accelerator mechanism and alleviate the risk of gas pedals becoming stuck in the depressed position.

Toyota and its dealers have their work cut out them as this recall has not only concerned consumers, but has also gained the attention of a congressional investigation. However, many dealers remain optimistic that the sweeping recall will be only a minor blemish that the brand will eventually overcome.

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