The Great Recession has given us so much since it began five years ago with the fall of Lehman Brothers and Washington Mutual, from underwater mortgages and high unemployment, to bailouts of the financial and automotive manufacturing sectors and credit freezes.
To the victor go the spoils. Who will be the victors, and how much spoilage will be there in the protracted Toyota battle? Of course, this is all in the name of safety and the children, and any sales dislocations will be unfortunate collateral damage. Really.
As optimistic as Toyota might want to be, over the next few months, their sales will decrease. They already do decrease. “Toyota’s US sales tumbled 16 per cent in January from a year earlier and are set to record another hefty fall this month,” reports Financial Times. Stoppage of deliveries and production, topped by a media onslaught, can have that effect.
As the first law of thermodynamics infers, energy cannot be created or destroyed, merely transposed. If customers are leaving Toyota, they don’t just disappear like Toyota‘s reputation for reliabilityChina’s interest in US debt, they have to go somewhere. So where will they? (Read More…)
Here’s something positive you may get out of the Toyota recall debacle: Cash on the hood and a Hyundai-like warranty. Reuters says that Toyota is discussing a range of options with its U.S. dealers to support sales.
Toyota already gives a $1,000 “loyalty bonus” to match monies offered by GM, Ford, Chrysler and Hyundai to Toyota customers who want to abandon their brand. Toyota is now thinking to pay a total of $2000 to returning Toyota customers, an anonymous source told Reuters. If this turns into a bidding war … (Read More…)