Page 225 - Toyota Under Fire

TOYOT A UNDER FIRE

the end of September 2010, industry data showed that 55 per-
cent of Toyota buyers traded in models from other manufactur-
ers, the highest level since September of 2009—before the recall
crisis. Edmunds.com shows that consideration of Toyota by new
car buyers also dipped to a low point in February and bounced
back, but stayed below the pre-recall levels through September
2010. In December, Kelly Blue Book similarly found that Toyota
had regained its position as the most considered brand among
new car buyers, though it had not fully recovered to its precrisis
levels.* In January 2011, Kelly Blue Book published a report look-
ing at the impact of the crisis on Toyota vehicles’ resale value. Its
research found that the crisis had had an impact on residual val-
ues, but not nearly what might have been expected. For instance,
the average value decline for Honda and Hyundai, two brands
generally perceived to be the biggest beneficiaries of Toyota’s trou-
bles, was greater than the decline in Toyota residual values.†
The market-share picture looks more positive when we take
out fleet sales, for example, those to rental car companies and
corporations, which generally are made at a very low or no profit
(and drive down future resale values). Toyota has historically lim-
ited fleet sales and continued to do so even during the depths of
the recession and the recall crisis. If we look only at retail sales
(excluding fleet), Toyota was running at 17.9 percent of the U.S.
market prior to the recall crisis, and by November of 2010 was
at 17.1 percent—just ⁄10 of a point lost (see Figure 4.4). And for
8

* “Toyota Regains Top Spot for Most-Considered Brand; Ford, Honda Close
Behind,” Kelly Blue Book, December 13, 2010; http://mediaroom.kbb.com
/kelley-blue-book-toyota-regains-top-spot-most-considered-brand-ford
-honda-close-behind.
† “Toyota: One Year Later,” Kelly Blue Book, Special Report, January 2011;
http://mediaroom.kbb.com/special-reports.

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