Register now for free access to autonews.com - this week only.
THE TOYOTA RECALL CRISIS

GM offers incentive to lure Toyota owners

UPDATED: 1/28/10 11:44 a.m. ET

DETROIT -- General Motors Co., seeking to capitalize on the problems plaguing Toyota Motor Corp.'s vehicles, will offer a monthlong incentive to Toyota and Lexus owners.

The move is in response to “thousands” of calls and e-mails to dealers and GM employees from Toyota owners asking for help, GM spokesman Tom Henderson said today.

The incentive, which runs through the end of February, offers Toyota and Lexus owners three options, Henderson said:

1. Those who choose to lease a vehicle may waive three payments for up to a total of $1,000.

2. Qualifying customers who are financing a vehicle purchase can receive 0 percent financing for up to 60 months.

3. Cash buyers can receive $1,000 off their purchase.

The incentive applies to purchases of GMC, Buick, Cadillac and Chevrolet vehicles, Henderson said.

GM intended for its offer to compensate for some of the value Toyota trade-ins have lost as a result of the recall, said Steve Hill, GM's general manager of retail activities.

“When something like this happen … probably the consumers' biggest concern is, ‘What has happened to the value of the used car?'” he said. “In general, when people buy a car, it's, ‘What is the used car worth, and what does the new car cost?'”

Toyota last week recalled 2.3 million vehicles to fix accelerator pedals that could become stuck. That recall number included some 2009-10 Pontiac Vibes, the sibling crossover of the Toyota Matrix. Both were produced in California by a former joint venture between GM and Toyota, New United Motor Manufacturing Inc.

Late yesterday, Toyota said it would suspend sales of vehicles with the affected pedals. That includes the 1,300 Pontiac Vibes left in North America, GM spokesman Alan Adler said today.

Only six Vibes are left in the United States -- the rest are in Canada. And four of the U.S. Vibes are technically sold but still may be on dealers' lots, Adler said.

GM dealers won't sell the two unsold U.S. Vibes, he said.

GM expects Toyota will pay for all recall work, Adler said, but the automaker is waiting for Toyota to give instructions to Buick-GMC dealers for fixing Vibes.

“Ultimately, GM dealers would fix Pontiac vehicles, but it's up to Toyota to provide the remedy,” Adler said today. “The NUMMI plant was a joint venture. However, the design, engineering and manufacturing of the product was Toyota's.”

Once Toyota recommends a solution, Adler said, GM will communicate with Vibe owners.

Toyota spokesman Brian Lyons said he didn't know what Toyota would decide about paying for Vibe work. But he said Toyota views the Vibe recalls as GM's responsibility.

“They sourced the pedal from [supplier] CTS just like we did,” Lyons said.

Toyota also added 2009-2010 Vibes today to its additional recall of vehicles whose floor mats could cause pedals to become stuck. That recall affects 99,293 Vibes in the United States and Canada, Adler said.

Other automakers

It was unclear if any other automakers would follow GM's incentive lead.

Said Ford spokesman Robert Parker: "We have not changed our focus, which is to provide all customers with products they want and value. It is through the strength of our new products -- with leading quality, fuel efficiency, safety, smart design and value -- that we have been and will continue to attract new customers."

Hyundai isn't currently planning an incentive aimed at Toyota, spokesman Chris Hosford said today, but the company is still considering doing so.

“Every day in the car business is new,” Hosford said. “Tomorrow, we could see something that changes the situation.”

A Chrysler spokeswoman said:

"We're not doing anything to target Toyota customers at this time. Our focus has been on getting the word out to consumers that the new company has great vehicles with cool features and making sure we're building our brands and letting customers know. Nothing has changed."

Jamie LaReau and Bradford Wernle contributed to this report

ATTENTION COMMENTERS: Automotive News has monitored a significant increase in the number of personal attacks and abusive comments on our site. We encourage our readers to voice their opinions and argue their points. We expect disagreement. We do not expect our readers to turn on each other. We will be aggressively deleting all comments that personally attack another poster, or an article author, even if the comment is otherwise a well-argued observation. If we see repeated behavior, we will ban the commenter. Please help us maintain a civil level of discourse.


Email Newsletters
  • General newsletters
  • (Weekdays)
  • (Mondays)
  • (As needed)
  • Video newscasts
  • (Weekdays)
  • (Weekdays)
  • (Saturdays)
  • Special interest newsletters
  • (Thursdays)
  • (Tuesdays)
  • (Monthly)
  • (Monthly)
  • (Wednesdays)
  • (Bimonthly)
  • Special reports
  • (As needed)
  • (As needed)
  • Communication preferences
  • You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.