Will Toyota increase incentives to lure in customers?
Toyota is talking with its U.S. dealers about a number of options, including adding $1,000 to its current $1,000 cash incentive to returning Toyota customers. Toyota's current $1,000 program matches incentives offered by General Motors, Ford, Chrysler and Hyundai.
Other options could include a free maintenance program -- such as oil changes and regular checkups -- and a new warranty program that would match Hyundai's 10-year, 100,000-mile powertrain warranty.
Currently Toyota offers a five-year or 60,000 miles powertrain warranty, plus three years of basic warranty coverage for "all components other than normal wear and maintenance items."
Toyota's U.S. sales dropped 16% in January to their lowest levels in more than a decade, after it suspended sales of top-selling vehicles subject to safety recalls, including the Prius, Camry and Corolla.