Re:market correction... by MacGyver30th, Jul. 04:11 PM Market is bullish again.. Good trading period from now to early-m...
Re:Map Technology - ... by happin30th, Jul. 03:16 PM MAP is now at 6 cents. Noticed that yesterday's last trade was 1...
Re:Rokko-An Explosiv... by neontet30th, Jul. 07:41 AM all these semicon companies are doing really well.
congrats on s...
market correction by pathfinder30th, Jul. 12:10 AM With all US company result good news ending in 2 weeks time & no ...
Re:Rokko-An Explosiv... by MOSBY29th, Jul. 11:49 PM http://www.remisiers.org/research//dailyex2307.pdf
TP :$0.30...
TOYOTA IN CHINA: Sales ease, customers asking for discounts
Written by Andrew Vanburen (China Correspondent)
Tuesday, 09 March 2010
Caveat Emptor: The RAV4 in some Chinese dealerships is reportedly selling at up to an 18,000 yuan 'recall discount'. Photo: Internet
TOYOTA HAS been making headlines around the world for all the wrong reasons of late.
Its massive global recall to fix faulty accelerators is already cutting into selling prices, both new and used, in the US and its Japanese home market, and it looks like China is no exception.
This is sobering news indeed for the world's biggest automaker, as the Middle Kingdom recently overtook the US as the top global car market.
In a SinaFinance story, the mood on the street, and in the Toyota (NYSE: TM) showrooms, was one of broadening trepidation for dealers, and for some car shoppers – one of rising interest in the possibility of getting unexpected bargains.
Dealers: Let’s Talk
The report cited a car salesman in a showroom of an FAW Toyota lot in Shanghai, the country’s biggest producer of the Japanese brand vehicle.
“We are now forced to bargain with consumers as they all want a discount. And there aren’t many lines of shoppers around like before,” the unnamed dealer at the Shanghai lot said.
The same day, another auto dealer in Beijing selling the popular RAV4, also a product of FAW Toyota, said that consumers were asking for, and getting, 8,000 yuan discounts to sticker prices in many cases.
And current owners of RAV4s approached by a reporter were kicking themselves, saying that just two short months ago they had to pay between 6,000-10,000 yuan on top of the sticker price to be able to drive away with their new vehicle the same day, or else be forced to wait at least two months for delivery.
Both dealers and owners of Toyotas have felt the unpleasant sensation of being associated with what was once one of the most respected and recognizable names in the sector to now having to either cut prices to clear inventory or, for current owners, face the prospect of reduced resale values down the road.
The fact that the 8.5 mln unit and counting global recall story has gotten such high-profile coverage has not done much to make a quick reputation recovery likely.
Toyota market share in the US has weakened post-recall. Is China next? Image: Wall Street Journal
Since late February, dealers say that the price cuts became the norm, most notably for the RAV4, with 6,000 yuan and 8,000 yuan markdowns in Shanghai and Beijing, respectively, the norm for showroom showdowns over drive-away prices.
Reports of 18,000 yuan discounts are also circulating in some regional markets for the model.
The report added that the up-market Toyota Crown Royal Saloon is even being sold at a ‘recall discount’ in some dealerships, with over 20,000 yuan discounts available and drive-off prices of just 300,000 yuan in some cases.
Although the Crown Royal is a major sales driver in most countries for Toyota, it has always faced tough competition in the China upscale sedan sector from the likes of Audi and BMW.
So when… or even if… Toyota emerges from the blows to its reputation amid the ongoing global recall, the Crown Royal and other Toyota models will have quite a hill to accelerate up to recover their former prestige in China.
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