Vince Pornelos / Brent Co | November 01, 2012 11:44
For trying to twist customers' arms
According to a wel- placed source, Toyota Motor Philippines Corporation President and CEO Michinobu Sugata recently punished one of his brand's dealers for bad business practices with regards to Toyota 86 transactions.
It is reported that several, if not all, Toyota dealers have been cashing in on the hot selling Toyota 86... unethically. With global demand reportedly setting a backlog of about 8-9 months, local dealer allocation is slim at best, and thus the dealers have been forcing customers to purchase unwanted accessories amounting to almost as much as PhP 500,000 as well as restricting the sales to the most profitable transactions (i.e. 20% downpayment, 48 months in-house financing, max insurance, etc.) with the promise of a unit allocation. Toyota customers who wish to purchase the 86 by cash or through their own bank were shunned.
When TMP President Sugata read the first hand accounts of this kind of 86 profiteering by dealers on our own AutoIndustriya.com forum, our good friend in the Toyota camp told us that he was very disappointed at what was going on and that the dealers who had been performing such acts had their unit allocation for the 86 revoked.
As to which Toyota dealership(s) had its 86 unit allocation cancelled is unclear, but what we can be sure of is that TMP President Sugata took swift action to correct how his brand was being represented with regards to a hot-selling halo unit.
It is not the first time these kinds of practices have happened. In the late 80's, the Corolla (colloquially known as the small body, 16-valve or the SKD) became a “hotcake” unit, also setting back orders in months. In 2005, the Fortuner's popularity made it “hotcake” unit, and dealers cashed in on it the same way as they are doing with the 86.