Will Toyota's Fall From Grace Reinvigorate Domestic Car Sales?

[CrunkedRL]

Well we've read the reports some of us even predicted Toyota's fall from grace many months ago. But with all of this publicity from the class action lawsuits to the government mandated production hault and the recently reported deaths I've questioned will this be enough to get the American consumers who've gleefully shifted from the wheels of domestics to Toyotas back into American cars again. GM and Ford are in the best position they've ever been in to take on new conquest sales. The days of lackluster quality, poor reliability and cheap chintzy interiors are hopefully long gone. But I wonder will this spur more people to switch to Honda or Hyundai or will we see a gradual migration back to the domestics in the coming months. Your thoughts?....

[AMERICA 123]

No question - over time for sure.

Depending on what develops and how it's handled in the media will affect the boost - or flat result the other Japanese brands receive.

Some of the Euros will benefit - probably Audi / VW most of all.

This is good news for Volvo and Saab.

Hyundai / Kia - absolutely.

Subaru - for sure.

And really, the ones not here yet just got a boost for down the road.

[t-rex]

I think it'll help domestics somewhat...

But I believe if Toyota does happen to crash and burn, Hyundai-Kia are going to be the ones making out like bandits.

[DNTCAiRNEMO]

I think it'll help domestics somewhat...

But I believe if Toyota does happen to crash and burn, Hyundai-Kia are going to be the ones making out like bandits.

Yes, it could be that way....but if this Toyota issue really blows-up then I would tend to believe that many Americans may "rethink" domestics like they have never done before and not blindly just switch to another Asian automaker. That, coupled with the sad state of the economy may help encourage people to support the domestics to a higher degree.

just my 2

[mattyman1010]

I think it'll help domestics somewhat...

But I believe if Toyota does happen to crash and burn, Hyundai-Kia are going to be the ones making out like bandits.

Without a doubt, I guess the picked a great time to be launching the new Tucson, sonata etc. I wonder if Saturn were still around, how they might have benefited from this...

[ksr]

It will help somewhat. Steering sales away from Toyota or Honda is like turning around the proverbial supertanker.

Although Americans seem so jaded over domestic cars that I can see a lot of them just crossing Toyota off their potential purchase list and moving to Hyundai or Nissan or whatever else isn't GM/Ford/Chrysler.

[mgescuro]

I think it is an opportunity for other Japanese manufacturers and Hyundai and domestics to capitalize on.

[2b2]

Ford Could Win From Toyota's Lack of Focus - WSJ/HEARD ON THE STREET
JANUARY 27, 2010, 12:58 P.M. ET
...one manufacturer's difficulty is another's opportunity. No company knows that better than Ford Motor... ...It looks very well-positioned to gain from Toyota's woes now.

Even before Toyota's recalls, Ford was forecast to replace 25% of its existing vehicle lineup each year between 2010 and 2013, according to John Murphy at BofA Merrill Lynch Global Research. Toyota's replacement rate was put at 17%.

Any impact on Toyota's ability to refresh its fleet will give Ford even more of an advantage from its new models. The mix of Toyota's recall is also important. Buyers of Camry and Corolla sedans may instead consider Ford's recently relaunched Taurus or Focus. Its updated, more fuel-efficient Explorer sport-utility vehicle, due to be launched later this year, could take market share from Toyota's RAV4 and Highlander SUVs.

If a true upswing in U.S. vehicle sales takes hold, there couldn't be a better time for Ford to see a major rival stumble. If the market remains weak, taking market share will be just as important in justifying Ford's current share price.

[Slideways]

Many of the stories you see posted on auto forums go a little something like this:
"I owned an (insert domestic automaker here) and it was a POS. I will never own one of them ever again."
Maybe there are enough consumers who have only ever owned a Toyota and they will turn their back on them in the same way.

[CrunkedRL]

Many of the stories you see posted on auto forums go a little something like this:
"I owned an (insert domestic automaker here) and it was a POS. I will never own one of them ever again."
Maybe there are enough consumers who have only ever owned a Toyota and they will turn their back on them in the same way.

Yeah I was trolling around on toyotanation earlier and read some posts and many of them were saying some disparaging remarks about Toyota but I wonder how many of them would actually consider a domestic now with all these problems swirling around.

[Joe McKinney]

If you had a bad experience with brand A and now you have had a bad experience with brand B you are not going back to brand A. You will move on to brand C or D.

The reason so many people do not buy domestics is because of previous bad experiences with domestic vehicles and dealers. The current Toyota debacle does not change the feelings these people have about the domestics. Those who abandon Toyota will now move on to Honda, Hyundai/Kia or some other brand.

[SuperSS27]

I feel like Honda, and Subaru will lose some of its quality perception. I hear so many people say, "Its Japanese, so you know the quality is there!" Now, I think the whole stigma of Japanese = Quality is going to be tarnished. Honda and Toyota fed off each other. Now people will rethink Japanese imports in general.

[eurohazard]

I'm sure it will help the American auto industry. But the D3 can't be complacent. Step 1 is here.....Make future customers realize no one manufacturer is infallible. Step 2......get buyers into your showroom. GM can be a hit vs. cocky Toyota sales trolls, but that is NOT a given either.

[chevytodd]

If you had a bad experience with brand A and now you have had a bad experience with brand B you are not going back to brand A. You will move on to brand C or D.

The reason so many people do not buy domestics is because of previous bad experiences with domestic vehicles and dealers. The current Toyota debacle does not change the feelings these people have about the domestics. Those who abandon Toyota will now move on to Honda, Hyundai/Kia or some other brand.

Exactly what I was thinking. But, I really doubt this will impact Toyotas overall sales that much. In another month or two most sheeple will have forgotten about it. And, most Toyota loyalists will still say they're better than brand "X". Much like we here still have a preference for GM despite their many blunders....

[vcs2600]

Recently we had a thread about a massive Honda seatbelt recall in the early 90s ... not many people remember because it was largely an 'isolated event' with cars that were otherwise considered to be well-built.

So a lot of it depends on what happens ... keep in mind it took 30 years of one bad story after another to knock GM off their perch.