Can Toyota survive the crisis?

Selzer & Co of Des Moines, Iowa conducted a survey on March 19-22 that asked 1,002 U.S. adults its opinion about Toyota and other car brands. More than 40% said that they “would definitely not buy a Toyota”. Moreover, 36% of those interviewed have an unfavorable impression of Toyota, which is the highest negative rating in the survey compared to other car companies. The reason for these negative results are the recalls the company had to do after receiving several sudden-acceleration complaints.

It will be a big challenge for Toyota to win back consumers. They are currently offering no-interest loans and lease discounts to boost sales and this strategy seems to be working. Toyota has sold 44% more cars in March this year compared to last year. This could indicate that an even bigger crisis has been averted and that people will happily come back if the price is right. In addition, the same survey showed that younger people have a more positive opinion about Toyota than older respondents. This could be a benefit for Toyota in the long term.

Of course, it is still too early to tell whether Toyota will ever be able to make a full recovery but if there are no further incidents with Toyota cars, the company has a pretty good chance to do so.

By Liselotte David

Source: BusinessWeek