Toyota May Offer Longer Warranties

[balli hi]

Hi , i found this article on an American Site , just wondering if there's anything tangible in the story , iv'e not heard or read anything similar over hear in the UK , anyone know anything to the contrary , any thoughts ??

Toyota May Offer Longer Warranties, Cash-Back Deals

By DOUGLAS MCINTYRE Posted 12:30 PM 02/14/10 Toyota, Autos

When it comes to luring customers, among the oldest tricks in the auto industry's book is offering a warranty package that's longer than the competitions'. Some drive-train warranties cover 100,000 miles or 10 years, whichever comes first. Another incentive used with regularity to get consumers into dealerships is the "cash-back" offer. Manufacturers are often reluctant to use these methods, because they're costly. But Toyota may not have many other options.

According to Bloomberg, "Ideas being considered [by Toyota] include warranties of as long as 10 years and rebates of thousands of dollars per vehicle that would start in March."

It's not yet clear what Toyota's huge recalls will cost it in lost sales. The company's U.S. vehicle sales declined 16% in January even though recalls weren't announced until the second half of the month. That means Toyota's sales could easily drop more than 20% in February and remain negative for some time while the balance of the U.S. car industry rebounds. If this happens, Toyota's 18% U.S. market share, which took decades to earn, could drop precipitously.

Toyota has earmarked $2 billion to cover the costs of its 8 million vehicle recall, which includes eight models that have accelerator problems. That figure doesn't include the expenses for the recall of its Prius hybrid sedan and Tacoma pickup truck models. If Toyota has to offer companywide 10-year warranties and substantial upfront incentives to bring customers back into its showrooms, that first $2 billion is going to seem cheap.

http://www.dailyfinance.com/story/toyota-may-offer-longer-warranties-cash-back-deals/19357607/

[Parts-King]

The UK dealer conference is in Birmingham today...............watch this space!

Kingo

[Fujisan]

"Toyota customers can now choose between a five-year warranty or free three-year servicing plan on any new car, as the company bids to regain customer confidence following bad publicity from the 'throttle-gate' reliability affair."

Full story here.