Toyota Helping Dealers; Opportunity in Crisis

Dealers are sounding off on how Toyota is dealing with them in the ongoing vehicle recall crisis. The franchisor has asked its dealers to stay open around the clock to fix the pedals that stick while accelerating. Robert Boch, a franchisee of Expressway Toyota of Dorchester, Mass., says that besides compensating for the labor and parts, Toyota [NYSE: TM] will provide as much as a $75k stipend to help dealers with expenses – things like temporary help.

Mr. BOCH: It'll keep us working around the clock. You don't make a lot of money when you do a recall. The manufacturer is very particular in the amount of time allotted to do it and the amount of money they pay you. So, they're it's not a revenue producer, although action creates action. If you have a car in the bay and the guy needs wiper inserts, then you change the wiper inserts and you do the recall all at the same time.

SIEGEL: You might even show him a new car while he's there.

Mr. BOCH: Maybe, maybe.

SIEGEL: Maybe look at the new one.

Mr. BOCH: Yeah.     [Listen to the full story, NPR, All Things Considered]

Toyota Division General Manager Bob Carter wrote an e-mail on February 2 to dealers about the $7,500 to $75,000 stipend and that their franchisor understood that building confidence with customers would cost dealers money.

“Within the next several days,” Carter wrote, “you will receive a check from us (no strings attached) with a simple request -- ‘do the right thing on behalf of Toyota customers.’ ”

Carter cited examples of what some dealers are doing throughout the United States during the recall. Among them: “extending service hours, adding greeters to their service drives, dedicating body shop capacity to expedite repairs, providing carwashes, increasing owner communication (and) providing complimentary maintenance service.”

“Dealers know the most appropriate and effective actions to take within their markets to begin restoring the confidence and trust customers place in us,” Carter wrote. [via AutoNews, registration req.].

The San Diego Union Tribune adds this piece of compensation:

"Dealers received word yesterday that Toyota will pay for a one-day car rental, if a car owner requests it, for vehicles recalled for the gas-pedal problem. Service managers at several dealerships said Toyota could expand that coverage to include cars in the floor-mat recall."