ALG Reports Residual Value Impact of Toyota Recall

As a result of massive recalls and ensuing media coverage, Automotive Lease Guide reports that future Toyota resale values face risk from its recent incentive spending program and a drop in ALG’s Perceived Quality Scores (PQS).

As a result, Toyota may have lost 13 percent of its potential customers because of the recall. The majority of consumers, though, seem resistant to changing their long-standing beliefs about Toyota’s quality, ALG reports.

“The lack of a severe decline in retention data and new market sales supports this fact,” the company writes in a recent research report. “The downside risk is that if this story stays in the media for an extended period, loyalty to the Toyota brand is likely to decline further. So far, of Toyota’s potential consumers, 70 percent are willing to disregard these recalls completely and maintain their brand loyalty. This could improve if the recalls are dealt with effectively, by up to a further 17 percent.”

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Trump and Regulations: An Alt-Fuel View

With 2025 emissions targets back in review, manufacturers, alt-fuel, and alt-power suppliers weigh in on the potential impacts of Trump’s initiatives.

Why GM’s Telematics Announcement is a Really Big Deal

Enabling a telematics connection at the factory — and not through an aftermarket hardware installation — is a game changer for fleets.

Four Thoughts From the 2016 Conference Calls

Sifting through the notes of Avis Budget Group’s and Hertz Global Holdings’ recent fourth quarter conference calls give us some trend lines to watch out for in 2017. (Of course, this gives us an incomplete snapshot, as Enterprise Holdings is privately held.)

Job Finder: Access Top Talent. Fill Key Positions.

>