GM offers special incentives to Toyota owners worried about recalls

[XDCX]

Several news reports are indicating that GM is offering special incentives to Toyota owners who are worried about the company's recent recalls. Here's a link to a story in USA Today - click here (http://content.usatoday.com/communities/driveon/post/2010/01/general-motors-offers-incentives-to-toyota-owners-worried-by-recall/1)

GM claims to be responding to "thousands" of calls and e-mail from customers and dealers. Frankly, I don't buy it.

I think it's poor form for one OEM to try and profit from another's misfortune. It's a slippery slope and sooner or later every OEM's going to have their day in the spotlight.

What's worse, in my opinion, is this will do almost nothing to increase sales of GM products. Let's face it, most of the vehicles that are subject to the recall are very new and the owners are buried. Further, how's a Used Car Manager going to appraise the trade vehicle without know what the fix is or how long it's going to take?

[MARV]

Ah, but there is always another side of the coin. Toyo has been riding the crest of the wave for a while not just because they build reliable if albeit stodgy unattractive cars but rather due to the facts that the domestics ignored in large part the small to mid side car segment in favor of gas guzzling SUV/Trucks which were highly profitable to the manufacturers and because the smaller rides are cheaper. When productivity began to cruise at a white hot pace due to demand from this largely ignored market segment it was virtually impossible to maintain the quality that Toyo was known for yet because of the glut it was inevitable that a quality crises was bound to happen.

So here we are. Toyo suffering in quality with massive recalls and a fledging former domineering auto company in the form of GM looking for an opportunity to sieze some market share after suffering the humiliation of bankruptcy while having the Feds breathing down their necks and the US Government as their primary stockholder.

Who can blame them? Is it classy? Who cares. This is a free economy. Will they become media darlings for their attempts? Unlikely.

It's safe to say that I'm not a fan of Asian automobiles however I don't deny their right to exist in our country. Would I rather they move their operation back to Japan and hawk their merchandise there? You bet I would!

The one thing I think we all miss in the news about Toyo's woes is that they are nothing more than a competitor trying to survive the economic woes we all are suffering. If another company has the courage and fortitude to pounce on them and take advantage of their situation then by all means have at it. I dare say that Toyo would do the same if they were against the ropes like GM.

Let the games begin!

[SHACOS]

Well, GM has already capitalized off of the taxpayer, so why not another manufacturer while they're at it? ;)

[newdealerman]

Well stated Marv!!!!! Don't drive your Toyota to your nearest GM dealer. Have it towed. So your family isn't killed in a giant fireball. The Asian cars are not better. Now I think it is fair to say the are worse!!!! Buy a Toyota get a fire extinguisher!

[s32741bb]

I am a Toyota and a GM dealer and really not happy with GM doing this special rebate. Look at the numerous times Toyota could have done this to GM with all their recalls

[Txflyer]

I'm kind of glad Chrysler isn't doing this. If this recall drags on for awhile the resale value of those affected Toyota's could be permenantly damaged.

What do you put in one of them - Black Book or last weeks auction price? If this problem persists they could drop in value rather quickly. We just recieved notice from GMAC Smartauction that until further notice the recalled vehicles can no longer be run on Smartauction. :eek:

[Granch]

I think we've entered a Bizzaro world people..


Ford posts a 2.7 billion profit

Toyota is a mess..

If Someone would have told me this a year ago I would have been on the floor in pain from laughing hysterically.

[MARV]

I think we've entered a Bizzaro world people..


Ford posts a 2.7 billion profit

Toyota is a mess..

If Someone would have told me this a year ago I would have been on the floor in pain from laughing hysterically.

My, how the tables turn.

[MARV]

Now it appears my brand Ford and Hyundai is jumping on the bandwagon joining GM.

[XDCX]

Great comments - I can see we have some differing points of view - that's a good thing.

While I agree with many of the points MARV made in his post, I question how many vehicles GM really expects to sell as a result of their special incentive. Additionally, I was put-off by the spin that GM was responding to "thousands" of worried customers and dealers.

That said, it will be interesting to see how this plays out. The fact that Toyota recalled another Million vehicles last night certainly doesn't help their cause.

[MARV]

Great comments - I can see we have some differing points of view - that's a good thing.

While I agree with many of the points MARV made in his post, I question how many vehicles GM really expects to sell as a result of their special incentive. Additionally, I was put-off by the spin that GM was responding to "thousands" of worried customers and dealers.

That said, it will be interesting to see how this plays out. The fact that Toyota recalled another Million vehicles last night certainly doesn't help their cause.

As much as I may be enjoying the negative press Toyo is receiving over this the Toyo owners that jump ship to GM/Ford/Hyundai and any other car company that decides to get in on this will be so minimal it probably won't make a single article that will have proven stats to back it's authorship. My only real satisfaction here is that the media is finally realizing that Toyo isn't made by God and they have some of the same problems the rest of the manufacturers have including recalls to correct them.

[CUD]

GM isn't doing this to sell more cars directly from the offer. Rather, I believe, it's a great way for GM to get some positive press (finally) and also a way of tweaking Toyo's nose.

[MARV]

Manheim is halting Toyo auction sales.

http://www2.manheim.com/buy#Recall

[XDCX]

My only real satisfaction here is that the media is finally realizing that Toyo isn't made by God and they have some of the same problems the rest of the manufacturers have including recalls to correct them.

That's cool - I feel the same way too.

For so long it appeared Toyota couldn't do anything wrong in the eyes of the Automotive Press and the likes of Consumer Reports. This incident and the way Toyota addressed the problem will open some eyes.

[Txflyer]

One thing for sure; if Toyota "fixes" all these floormats and pedals and the accidents continue to occur, the SS Toyota will wind up at the bottom of the ocean as crab food.

[newdealerman]

Edited: Duplicate post in two different threads. See post in this thread - click here (http://www.dealershipforum.com/forums/showthread.php?p=13812#post13812)