By Jeff Green March 12 (Bloomberg) — Toyota Motor Corp. set a 2010 goal of regaining most of the U.S. market share lost in the past two months after global recalls of 8 million vehicles damped demand, the No. 2 U.S. sales executive said. The target would be as much as 16.7 percent of new-car deliveries, said Don Esmond , senior vice president of Toyota’s U.S. sales unit. That would be the same level as in 2008, and less than 2009’s 17 percent, when Toyota trailed only General Motors Co. , according to industry researcher Autodata Corp. Esmond’s plan would require a rebound from Toyota’s U.S. share of 13.4 percent through February. With inventory replenished after the recalls, he said, no-interest loans and lease discounts helped boost sales through the first 10 days of March by about 40 percent over a year earlier. “We did stumble, but I don’t think we fell to the ground,” he said in an interview yesterday before a meeting with dealers in Troy, Michigan. “There’s a fine line between taking responsibility and getting back to business.” Recouping sales in what had been the automaker’s largest market is pivotal to the Toyota City, Japan-based company’s bid to recover from recalls to fix flaws ranging from unintended acceleration to braking software. The world’s biggest automaker reported an 8.7 percent U.S. sales decline in February. Industry Boost Toyota’s incentives may push industrywide deliveries this month to an annualized rate of 12.5 million units, consumer pricing Web site Edmunds.com said yesterday. That would be the fastest pace since August, when the U.S. government offered trade-in incentives for buyers. Esmond said Toyota expects as many as 11.7 million light vehicles to be sold in the U.S. in 2010. That compares with a 2009 total of 10.4 million, according to Woodcliff Lake, New Jersey-based Autodata. Holding 16.7 percent of the U.S. market this year may not be enough for Toyota to retain second place. GM’s share through February was 19.5 percent, and Ford Motor Co. rose to No. 2 with 17.5 percent, according to Autodata. Toyota is still assessing whether to offer an extended warranty to mimic campaigns by Hyundai Motor Co. and Chrysler Group LLC to restore confidence in quality, Esmond said. Hyundai and Chrysler have 100,000-mile (160,900-kilometer) powertrain warranties, compared with 60,000-mile powertrain coverage on Toyota’s Camry sedan. No Rust “The brand got tarnished,” he said. “But I don’t think it rusted the armor all the way through.” New models such as the Sienna minivan, which arrived in showrooms in January, and the redesigned Avalon, which goes on sale in April, should help revive sales, Esmond said. Toyota will display new Scion models, the iQ and the tC, at the New York International Auto Show next month, he said. To compensate the 1,200 U.S. dealers for recall-related fallout such as longer hours for their service departments, Toyota made one-time payments ranging from $7,500 to $75,000, based on volume, Esmond said. Esmond said Toyota should finish a campaign next month to reassure the U.S. sales force about the company’s outlook. He is meeting with dealers this week in the Midwest and in the Northwest U.S. next week. Toyota’s American depositary receipts rose 58 cents, or 0.8 percent, to $76.94 yesterday in New York Stock Exchange composite trading, paring the drop for this year to 8.6 percent. To contact the reporter on this story: Jeff Green in Southfield, Michigan, at jgreen16@bloomberg.net
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Toyota Sets Goal of Regaining U.S. Market Share Lost to Recalls Within ’10
