Buyer interest in Toyota tanks

[liberal N proud]

NEW YORK (Fortune) -- On the surface, Toyota would seem to be surviving its sudden acceleration crisis in remarkably good shape.

Thanks to one of the most aggressive campaigns of cut-rate financing and cash incentives in its history, the Japanese automaker's sales declined only slightly in February, and early signs point to another strong performance in March.

Better still, the sales-lot promotions haven't cut into the value of Toyota used cars. Kelley Blue Book reported Monday that the average year-over-year change in 36-month residual values for Toyotas is expected to rise 4.2 percentage points in May-June. That's a bit less than the industry average of 6.2 percentage points, but healthy nonetheless.

But according to a confidential market research study reviewed by Fortune, the recalls have battered Toyota's reputation in every measurable category, including brand consideration -- an essential step in the decision process that leads to buying a car.

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Better still, the sales-lot promotions haven't cut into the value of Toyota used cars. Kelley Blue Book reported Monday that the average year-over-year change in 36-month residual values for Toyotas is expected to rise 4.2 percentage points in May-June. That's a bit less than the industry average of 6.2 percentage points, but healthy nonetheless.

But according to a confidential market research study reviewed by Fortune, the recalls have battered Toyota's reputation in every measurable category, including brand consideration -- an essential step in the decision process that leads to buying a car.

http://money.cnn.com/2010/03/22/autos/toyota_buyers.fortune/index.htm?section=money_autos