Toyota may continue incentives through the summer

Toyota may keep its current U.S. incentives for months to draw buyers to its showrooms as it faces the biggest recall crisis in the company’s history. According to analysts Toyota may continue its incentives well through the summer to recover from the damage that has been taken to its reputation for quality.

“With what we can gather today, they”re going to have to continue this level of spending until 2011 models start to come in a meaningful way,” said Jesse Toprak, vice president of industry trends at forecaster TrueCar.com. “That could mean until about August.”

Toyota began offering zero percent interest loans and discount leases on most Toyota models in early March and extended them this month. According to Edmunds.com the incentives were worth $2,568 per vehicle last month. They helped fuel a 41 percent boost in the company’s U.S. sales gain for last month, after it recalled more than 8 million vehicles globally.

– By: Stephen Calogera

Source: BusinessWeek