Toyota Reclaiming Buyer Loyalty

NEW YORK – Toyota has won back all of its loyal car buyers since last year’s public-relations debacle over reports of unintended acceleration in some models, says Jim Lentz, chief operating officer-Toyota Motor Sales U.S.A.

The auto maker also has regained about 75% of its conquest intenders, or those intending to buy a competitor’s vehicle, he tells the media during the ’12 Camry’s unveiling here.

Toyota predicts 13% increase in Camry sales in 2012.

All but 50,000 Camry units sold in the U.S. are made at Toyota's Georgetown, KY, plant, including hybrids. The remaining 50,000 are assembled at Subaru's Indiana plant.

Camry production in Indiana is not scheduled to begin until Dec. 12.

Toyota owns 20% of Fuji Heavy Industries, Subaru's parent company.

The new model will go on sale in October with prices slashed across every trim level.

Launching 20 new models in the next two years will help win back the rest, Lentz says.

Toyota's market share dropped to 15.2% in 2010 after peaking at 17% in 2009. Lentz acknowledges the 2009 volume was inflated because TMS Motor Sales carried an inventory of some 250,000 units that year.

He indicates unusually low inventories, currently 113,000 units, are contributing to Toyota's current sales slump.

“Inventories will normalize in the next few months,” he predicts “They will be completely normal by next spring.”

Lentz says Toyota's market share is rebounding. “But I won't promise 17% again,” he says. The Toyota executive forecasts an overall market of 12.5 million units this year, reaching 13 million units in 2012 and 16 million by 2015.

Pent-up demand for cars is starting to take hold. “Consumers have delayed purchases for a number of years,” he says. “Now we're seeing buyers who can't put off purchases any longer.”

Another Toyota executive tells Ward's the auto maker expects to sell 315,000 Camrys this year, thanks to a bump in the fourth quarter, and forecasts 360,000 Camry deliveries in 2012, up 13%. “We're prepared to build if market demand is there.”

Lentz says it’s too early to announce lease programs for the new Camry. Leasing accounts for 20% to 25% of Toyota sales. “It’s more in New York and less in San Francisco,” he says.

The new Camry L with a 4-cyl. engine will have a base price of $21,995, up $710 from the ’11 model. But prices of the other ’12 models either will hold steady or be cut by as much as $2,000 for the base XLE 4-cyl. model, to $24,725.

Prices top out at $27,400 for the XLE hybrid, $1,150 less than the 2011 model.

Toyota projects 4-cyl. models will account for about 47% of sales. The company expects the SE model to double its sales to about 25% of overall volume. The XLE will account for 13% of sales, with the V-6 capturing 15% of those sales.

A Toyota sales executive forecasts a boost in V-6 sales, but says 85% of non-hybrid customers will buy models with a 4-cyl. engine. He anticipates that hybrid models will account for 11% of Camry sales. The SE, including both 4- and 6-cyl. versions, should draw about 20% of sales and the base L model, 8%.

Camrys manufactured at Toyota's Tsutsumi plant in Japan no longer are imported here. The Camrys made in Kentucky and Indiana have more than 80% U.S. content.