The massive global recall coupled with economic slowdown has not dented Toyota’s profit earnings in the UAE and GCC, Al Futtaim's Managing Director Simon Frith, has said.
However, Frith stressed that no model in the UAE was being “recalled”, and that the campaign launched by Al Futtaim early last month was merely aimed at “servicing the cars.”
In an interview with Alrroya.com, Frith also revealed that Toyota’s overall sales in January rose 45 per cent and 28 per cent in February against the same period last year.
“This is a positive indication that the industry is recovering after the economic challenges of the last 12 months,” he said.
As the face of Toyota in the UAE and the larger Middle Eastern region, Frith could not afford to sit on his laurels as the automaker’s global reputation took a beating amid a string of well-publicised recalls involving millions of Toyota vehicles due to problems involving sticking accelerator pedals and brake systems.
In the words of Toyota’s president, Akio Toyoda, the firm is “in a crisis.”
For decades, Toyota has been viewed as a paragon of corporate improvement, innovation and effectiveness, qualities that helped it become the world’s largest automaker.
Toyoda has been busy gallivanting the globe to offer his personal apology to Toyota customers and has promised to beef up quality control by setting up a special committee that he would head himself.
Checks carried out on Avalon and Sequoia models
Here in the UAE however, Al Futtaim moved swiftly to assure its customers they would unlikely be affected by the quality problems in the accelerator pedal “due to the favourable weather conditions in the country.”
The company, in co-ordination with the Ministry of National Economy, ran adverts in the press for a service campaign of the models that were affected by the massive global recalls.
“Because of the difference in climatic conditions here in the UAE, we have been advised by Toyota Motor Corporation that our customers are unlikely to be affected and have no reason for undue concern,” read the ad.
The campaign is for the Avalon from model years 2005 to 2010 and Sequoia from model years 2009 to 2010 only.
“Out of the eight Toyota models affected... only two of the models are sold in the UAE through Al Futtaim Motors. These are the Avalon from model years 2005 to 2010 and Sequoia from model years 2009 to 2010,” said Frith.
“These models are not being withdrawn from the market, we are inviting existing owners to make a service appointment to implement the updates where necessary and do not anticipate that every vehicle will require this remedy,” said Frith.
“We urge all Avalon and Sequoia owners in the UAE, regardless of their original place of purchase, to contact our customer care team to make an appointment at the earliest,” stressed Frith.
He revealed that Al Futtaim has so far received 2,000 appointments and that the campaign is running smoothly.
Along with the service campaign, Al Futtaim has launched a series of offers and promotions that aim at bouying up its sales record and maintain its customer confidence.
“In terms of offer, we are fully focused on providing customers the best value for money,” Frith says.
Currently, prospective Toyota owners will receive one year of free insurance, free three years warranty and a saving of Dh5000 on select models from the 2010 Toyota Corolla, Camry, Fortuner and Prado range.
“We firmly believe that what is most important to the consumer is the lowest possible cost of ownership of the vehicle and we mean not only the original purchase price and offer,” the executive said, adding, “whilst we are offering competitive low prices, the best finance and offer packages, we also ensure that our running costs and residual values are the best in the industry. This means that our total cost of ownership is the most competitive and therefore buying a Toyota or Lexus remains the smart choice.”
UAE dealer seeks expansion, more investment
The new Sequoia 4x4 model is now available and by the end of 2010, Frith says he is confident the Sequoia will become the market leader in its class.
“We have also recently launched two new models the luxury SUV, the Lexus GX460 and the Lexus flagship hybrid, the LS 600hL, both of which have been well received. Throughout the year, we have other model launches planned, as well as significant expansion plans,” the director said.
Al Futtaim is also making considerable investment in premises designed to offer its customers better service. Frith says the company will open a new showroom in Abu Dhabi and also premises within the major Motorworld development.
“Here in Dubai, we are making further investment in our after-sales facilities and overall the outlook for Al-Futtaim Motors in 2010 is extremely positive,” he added.
Frith also revealed that the massive global recall coming hot on the heels of financial crisis did not dent the automaker’s profit earnings in the UAE and that contrary to reports, the dealer made good collections during the slump period.
Due to the massive recall of the cars in the US, there have been reports that Toyota may be considering extended warranties for US customers. However, no such move is planned for customers in the UAE or the GCC.
“We have not received any indication from Toyota Motor Corporation to extend warranties on models in the UAE,” Frith said.
“However, in line with the UAE Ministry of Economy laws, the parts fitted will have a warranty for six months from the date of installation.”
Recalls not a setback on eco-friendly campaign
Toyota is currently at full speed testing and promoting its eco-friendly plug-in hybrid Prius electric vehicle. And with the significant Prius recall due to defect in the model’s software that manages conventional braking system – Frith says the move would not be a setback on the future of Toyota’s eco-campaign.
“Like Toyota Motor Corporation (TMC), Al-Futtaim Motors is wholly committed to introducing more hybrid vehicles into our model range and we are, in fact, seriously considering the Toyota Prius,” he avers.
“Crucially, Toyota Prius has established hybrid vehicles in the public consciousness and thereby contributed to the popularisation and awareness of hybrid vehicles globally. When we look at the global market, TMC hybrid vehicles have cumulatively sold over 2 million units,” said the director, adding, “Their research and development department will continue to champion the hybrid cause with evolving new technology that meets the demand for a sustainable future.”
“TMC is delighted that the flagship Lexus hybrid, the LS 600hL has now launched here in the UAE and we look forward to working with TMC to expanding the hybrid range available here,” Frith said.
Consider also reading:
Rivals take aim at Toyota customers amid recall
Toyota proposes safety fix amid huge US recall
Toyota apologises, vows safety improvements
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