USA: American auto makers offer big incentives to try to win over Toyota customers

Record ID: 574833

  • Title: USA: American auto makers offer big incentives to try to win over Toyota customers
  • Date: 2nd February 2010
  • Summary: NEW YORK CITY, NEW YORK, UNITED STATES (FEBRUARY 1, 2010) (REUTERS) (SOUNDBITE) (English) JIM LENTZ, PRESIDENT AND CHIEF OPERATING OFFICER, TOYOTA MOTOR SALES U.S.A., SAYING: "Our products are safe. I drive a Toyota product. My wife, my sons, families, neighbors. I wouldn't have them driving products if I didn't think they were safe. We have loyal Toyota owners. We will take care of these owners as quickly as we possibly can. I think it's still a good time to come in and buy a product. I can't control what our competitors do."
  • Embargoed: 17th February 2010 12:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: Industry,Transport
  • Reuters ID: LVA55H89SIA934M50GRV6H6U8JF1
  • Story Text: General Motors, Ford, Chrysler are moving quickly to grab market share from Toyota, the world's largest automaker, after it recalled and froze sales of eight models with gas-pedal problems.
    The American car manufacturers and Hyundai are attracting nervous Toyota owners to their lots with rebates of at least $1,000 (USD) and other incentives this month. Dave Vorcheimer (pronounced voy-schymer), General Sales Manager for Maplecrest Ford in Union, New Jersey, says his dealership has doubled its daily sales since the incentives started on Thursday (January 28).
    "It's been a great opportunity. We are actually getting people coming in with their Toyotas and Hondas and other vehicles and we are able to put them back into a Ford product," said Vorcheimer.
    In an effort to entice nervous Toyota owners, Maplecrest Ford is doubling the manufacturer's rebate for a total of $2,000.
    "Ford is offering a thousand dollar trade assistance rebate for anyone who has a vehicle involved in the recall. We're going above and beyond that and offering an additional thousand dollars, two thousand total, if they purchase a Ford or Lincoln Mercury," detailed Vorcheimer.
    Many GM dealers are also matching their manufacturer's offer.
    American competitors see this as a prime opportunity to win back drivers who left for Asian models. Ford says the worst is over and that it's in a period of expansion. Vorcheimer sees all this as an extra lift for his brand.
    "It's been great. Since it's been announced, every day has been good here on the lot, and I've talked to other dealers and they are getting a lot of activity," he said.
    Analysts predict the American companies may report gains Tuesday (February 2) when they release January sales. Toyota's expected to post a sharp drop.
    These next few weeks are crucial to all the car makers as Toyota works to repair 4.5 million recalled vehicles and the damage to its reputation. Jim Lentz, president of Toyota's U.S. sales division, says nothing is more important to the company than auto safety.
    "Our products are safe. I drive a Toyota product. My wife, my sons, families, neighbors. I wouldn't have them driving products if I didn't think they were safe. We have loyal Toyota owners. We will take care of these owners as quickly as we possibly can. I think it's still a good time to come in and buy a product. I can't control what our competitors do," said Lentz.
    Just how much this impacts each of the automakers, depends in large part on how quickly Toyota fixes the problem. The company began shipping a new part to its U.S. dealers to fix the gas pedal, and says it will restart production of the recalled models next week.
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