Toyota Extends U.S. Sales Incentives through May 3rd

Toyota Motor Corporation has extended broad U.S. sales incentives by a month and widened a maintenance program as the Japanese automaker tries to revive sales after the wave of safety recalls. Toyota offered record incentives in the U.S. in March to help sales that had fallen sharply because of a sales and production halt and numerous safety recalls in the first two months of the year.

The incentives helped boost March U.S. sales by 24 percent industry wide and by 41 percent for Toyota, after a fall of 16 percent in January and 9 percent in February. The carmaker offered zero-percent financing offers on six models for up to five years and widened a free maintenance program for two years to all new vehicle buyers.

Toyota also reduced the number of models on which it offered zero percent financing from eight in March to six in April. Camry, Corolla, Yaris, Avalon, Matrix and Tundra remained in the program, while Highlander and RAV4 were eliminated. This is a sign that Toyota doesn't intend to make a habit of offering incentives.

"It is not our strategy, it's a tactic. We will keep them competitive", said Don Esmond, senior vice president of automotive operations at Toyota Motors Sales USA, at a Toyota dealer meeting. The official added that the incentives were still below those offered by some rivals and he did not believe Toyota's sale in March were gained at the expense of sales in future months. "Some of our competitors have incentives of USD 3,000 to USD 4,000. We're no where near that" Esmond said, quoted by Reuters.

"Toyota went through some unprecedented negative publicity and we needed to send a positive message to the customers. We also are still in the midst of a recession", added Fred Mark, an Illinois Toyota dealer.