Early this year Toyota released two major recalls, one entitled “Floor mat entrapment” and the other called “Pedal.” These recalls have caused quite the shift in the car industry. While Toyota is doing everything possible to avoid bad publicity and keep some level of quality attached to their name, they are rapidly losing brand loyalty. According to a study done by Kelly Blue Book, the number of Toyota owners who would look into newer Toyota models is down 7%.
Toyota’s loss seems to be everybody else’s gain. Ford, Hyundai and Kia are all seeing increases in brand loyalty and sales. Another interesting finding was that Toyota owners are now less likely into buying from other Japanese car dealers, and are more likely to show interest in Ford, Kia or Hyundai.
When it comes to cars, safety is a top priority and as soon as a consumer associates a car with not being safe they are going to eliminate it from their potential car candidates. Toyota has left the car market wide open. Their spot is now up for grabs and whichever dealers make smart and strategic moves can come right in and fill Toyota’s void within the industry and scoop up their market share.
With Hyundai’s new Sonata which they have been pushing, even advertising it during the Superbowl, they have positioned themselves as the affordable alternate to luxury vehicles. Ford is introducing the highly buzzed about Fiesta this summer which will fulfill people’s hybrid needs. They also have several models offering high MPG which makes them the more efficient and green choice. And Kia is showcasing the 2011 Sorento which is a midsized SUV at an affordable price.
With each dealer pushing a different type of car, it will be interesting to see how sales fluctuate in the coming months.
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