Build Up Time for Toyota

Thursday, 28 October 2010 13:11

Written by TUP Team

It was going to be difficult for even a brand as big as Toyota after the famous safety recall problem early in the year, but the good discounts on cars have ensured that their steady clientele is maintained. These offers showed that the company was being faithful to its loyal consumers and their faith was repaid as the sale numbers for the company were equal to those which were in pre-recall times. However, the high discounts are eating into their profits with dealers and manufacturers selling cars on very low gross profits. According to leading automobile websites, the transaction costs for Toyota’s 2011 models have been the lowest as compared to the sticker prices of all the other mainstream companies.

Good factory incentives are helping the discount providers but the company is still earning quite low as compared to other automobile manufacturers dealing in the same price range and costs. This isn't good news for the dealers as they have to go with the low profits to ensure that the metal bodies are moved off their showrooms. Some dealers say that the company is psychologically affected by the their recall crisis which is why they are going all ends up to sell the cars while others think this is necessary.

The fact remains that having these much sales after the crisis is commendable but still one cannot ask any individual to just sit and not talk about it. Dodge, Hyundai, Chevrolet and Ford showed sales gains of double digit percentage in September but Toyota could only show an increment of one percent.

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