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Gaining from Toyota's pain

by Associated Press
| February 10, 2010 11:00 PM

DETROIT - In a few short weeks, Toyota has done what General Motors, Ford and other automakers have failed to accomplish for decades: Erase the perception that the Japanese automaker's cars are of much higher quality than those of its rivals.

A series of recent safety recalls - now totaling more than 8.5 million vehicles worldwide - has cracked Toyota's bulletproof reputation and given rivals an opportunity to capture some of its customers.

Toyota stumbled as industry sales are just starting to climb after the worst slump in 30 years. It's not yet clear which automakers will benefit most, but several stand to benefit and are wooing Toyota drivers with new ads and incentives.

"The perception game has changed," said James Bell, an executive market analyst for the vehicle information company Kelley Blue Book.

According to Kelley, 27 percent of new car shoppers who were considering a Toyota before the recall are no longer contemplating the brand.

Nearly half of the buyers who have defected from Toyota say they may never consider the brand again.

Kelley questioned 406 people before the recall and 285 after it. All were U.S. buyers who said they planned to buy a car in the next 12 months.

Ford, Chevrolet, Hyundai and Honda have made the biggest gains with those customers, Kelley Blue Book said. Sixteen percent of new-car buyers said they weren't considering Ford before the recall, but are now.

David Tompkins, vice president of analytics with Edmunds.com, said the crisis also is starting to affect Lexus, Toyota's luxury brand, which has seen the number of buyers intending to purchase the brand drop by 25 percent in the last two weeks. Those customers are now looking at Audi, Acura and Volvo. His data is based on 3.5 million Web site visits per week.