Top Biz News
Wheels come off for Toyota sellers
By Wang Chao (China Daily)
Updated: 2010-03-03 10:56
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Toyota issued a recall on Dec 24, of 43,000 Lexus ES350s, Lexus RX350s, Highlanders and Previas; and another on Jan 28, on 75,000 RAV4s made in Tianjin.
Both the recalls were limited to vehicles produced during a certain time period. Only Highlanders made between May 31, 2007 and April 18, 2008, for example, were recalled.
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Inset: A small gasket provided by Toyota which is said to increase safety. [CHINA DAILY] |
"But customers will not think about that much," said Zhang. "The Toyota brand is damaged."
In the last two months, only two people showed any interest in buying a Toyota car at the store, Zhang said.
"They were both in their 40s, and really knowledgeable about cars. But even for them, buying a Toyota car is not easy because they have to convince their terrified family members."
Although both Toyota stores and independent dealers are having a difficult time selling vehicles, Niu Yu, director of Toyota's public relations department in China, said the company doesn't intend to reduce vehicle prices and doesn't have a plan to make up the losses of its stores in Beijing.
Toyota's problems mean it is missing opportunities to stake out a share in a rapidly growing market.
In January, 63,000 cars were sold in Beijing, a 20 percent increase compared with January 2009, according to Guo, a worker from Beijing Automobiles Manufacturers Association who refused to give his full name.
However, some experts are still optimistic about Toyota's future.
"It is an old brand which enjoyed a good reputation for decades. Although there is a trust crisis, I believe they will get through it," said Jia Xinguang, an auto expert.
The recall will not fundamentally shift the car market in China, added Jia.
"Since Toyota only has a market share of 2 percent in China, the recall really won't make a huge difference," he added.
