The Aftermath of Toyota’s Recall: Incentives and Swaddling
A lot of talk has been thrown around loosely behind Toyota’s 8.5 million vehicle recall, but one thing is for certain; there is definitely going to be a fairly significant aftermath. Toyota reported an 8.7 percent decline in sales last month, proving their worst fears were becoming nightmares. Two of the newest developments in the aftermath of the Toyota recall are an “unprecedented” incentive program to win back U.S. customer loyalty, and discussions between U.S. officials to create a Federal mandate enforcing brake override systems.
Toyota Deals are Booming (March-April 5th)
Toyota may not be the fair haired child to U.S. consumers anymore, but Toyota is most certainly pulling all the stops to win back their support. Yesterday, Toyota Motor Company announced what would appear to be one of the most aggressive incentive packages in their history.
Starting this month of March through the 5th of April, buyers can choose between either a zero interest loan for as long as five years (60 months), or a “low cost” lease. Both incentives also carry the addition of free maintenance for the period of two years. These incentives are set to range across the Camry, Corolla, Matrix, Prius, Yaris, Venza (wagon), RAV4, Highlander, and Tundra models.
The cost of these incentives could be astronautical when you consider that subsidizing a zero percent, 60 month loan, will cost Toyota over $4,600 per vehicle with current interest rates. While this may sound bad for Toyota, it can be good for the consumer if they are in the market for a Toyota. By most calculations, the incentives offer the possibility of purchasing a new Corolla, starting at just $179/month, or a Camry for $199/month.
Yes, that’s “unprecedented”!
Brake Override Mandates in Consideration
The other interesting aftermath to come out of Toyota’s situation, is a discussion by U.S. officials, looking at the possibility of mandating brake overrides on all new vehicles. This news comes as Toyota’s unattended acceleration problem has been looked at by State Farm Insurance, who has come to the conclusion, that most of these issues began after Toyota started using computer controlled “throttle by wire” systems. In this type of arrangement, it is the job of the computer to monitor the position of the pedal and adjust speed accordingly.
The mandate will allow the “human” driver to override the “computers” decision to continue accelerating if it senses the brake pedal has been applied. In other words, the brake system will have priority over the accelerator at all times. While this solution does not inhibit the possibility of a computer control unit, malfunctioning (which Toyota denies has ever happened), the driver would at least be able to disengage acceleration with the tap of a foot.
Rounding off Toyota’s over-the-knee swaddling, Senator Jay Rockefeller, dished out his own round of spankings to the National Highway Traffic Safety Administration (NHTSA) for not finding the root cause of the acceleration issue sooner. “I think NHTSA investigators would rather focus on floor mats than microchips because they understand floor mats,” said Rockefeller, inferring to their underrated engineering staff.
“Unprecedented” indeed!
Source: Left Lane News & Business Week





