Maryland's Toyota dealers left steering a tricky course
Recall, other concerns send sales tumbling
Toyota dealers in Maryland, like those nationwide, are scrambling to fix recalled models and allay customers' worries, even as new concerns about the world's largest automaker continued to surface this week.
Toyota announced a recall on Jan. 22 for eight of its models following isolated reports of sticking accelerator pedals in vehicles without floor mats, causing uncontrolled speeding, according to Toyota's Web site. The recall covers about 2.3 million vehicles. Since then, concerns have risen regarding braking in Toyota's popular Prius hybrid, possible electronic malfunctions and earlier study findings.
"These were our top-selling models," said Andrew Moore, assistant general manager for Beltway Toyota in Marlow Heights, referring to the vehicles being recalled, including the 2009 and 2010 RAV4 models. Moore said the dealership is experiencing lighter sales traffic in the recall's aftermath but expects heavy service traffic as it fixes the problem.
Toyota has started providing dealers with a metal piece that can be inserted into the gas pedal assembly to stop it from sticking when pressed and said it would also distribute a fix for the earlier floor mat issue this week.
The safety issues have hit the Japanese company hard. U.S. sales last month were down 15.8 percent from January 2009, according to Autodata Corp. Meanwhile, both General Motors and Ford posted sales increases last month over January 2009, 14.1 percent and 25.0 percent, respectively.
Further rankling car dealers were U.S. Transportation Secretary Ray LaHood's initial comments Wednesday, advising Toyota drivers to turn in their vehicles immediately. He later modified that to advising owners to turn in vehicles if they had concerns.
Ben Messier, general manager for Antwerpen Toyota in Clarksville, called LaHood's comments "irresponsible." He said his staff has been scheduling appointments as late as 11 p.m. and working around the clock to service vehicles.
Darcars Automotive Group of Silver Spring has also extended its hours to accommodate customers, said CEO Tamara Darvish.
"It's logistically going to be an issue for the dealerships," said Peter Kitzmiller, president of the Maryland Automobile Dealers Association. "But at least dealers can answer customers' questions now."
The key to overcoming customer concerns is to find out for certain what the defect is and get the parts out to people quickly, said Geoff Pohanka, president and CEO of the Pohanka Group, which has dealerships throughout the state and is headquartered in Marlow Heights.
"Toyota has a tremendous brand loyalty compared with some manufacturers that don't have that build-up of good will," he said. "Most customers are not likely to cross over [to another brand] for something like this."
Messier, who has also operated Nissan dealerships, said he's been surprised by the overall loyalty of the Toyota customers, although sales at his dealership have dropped.
The recall has also reduced the rental fleet for some Toyota dealerships that provide customers with rental vehicles, as those fleets may include affected models, too.
"If this happened to anyone else other than Toyota, it would be a catastrophe," said Pohanka, echoing other Toyota dealers' statements throughout the state.
John J. Fitzgerald Jr., founder and president of Fitzgerald Auto Malls in Kensington, said he wishes customers paid as much attention to other recalls as they are with this one, suggesting that when people look back at this, they will wonder what the fuss was about.
"Toyota will recover, since Toyota builds the best cars," he said.
GM looks to cash in
General Motors dealers that are selling vehicles that fall under GM's discount program for Toyota trade-ins hope to see more sales throughout the month. Until the end of February, GM is offering $1,000 rebates and 60 months of no-interest loans for customers who trade in their Toyota for most Chevrolet, Buick, Cadillac and GMC models.
"Hopefully, it will bring something," said David Marshall, manager of Capital Cadillac in Greenbelt. "It's not being advertised on the airwaves yet so we don't know if it will have an effect." Capital Cadillac also sells Buicks and GMCs.
Other dealers, such as Sam Dadkhoo of Ourisman Chevrolet in Temple Hills, are jumping right into the program, printing ads and advertising the program as much as they can.
"We're anticipating a good turnout," he said.
Steve Smeltzer, general manager at Jones Junction in Bel Air, which sells Toyotas, said he doubts the rebates will greatly influence Toyota drivers. Smeltzer said the recall has yet to hurt his dealership.
"I don't think rebates change brand loyalty," he said.
Kitzmiller said it is naÔve to believe the competition will have no effect, because dealerships already operate in an abnormally competitive market, due to the recent recession.
"It's disappointing to see [the other companies] doing this sort of predatory advertising, but that's what happens," Messier said.