Toyota dealers court customers to soften recall

New Toyota automobiles are shown at a dealership in Daly City, California February 2, 2010.

PHOENIX (Reuters) - Toyota dealers across the United States began repairs of defective gas pedals on Thursday, hoping that extended hours, free oil changes and complementary rental cars can help restore the automaker's tarnished reputation with customers.

"Until that car does me wrong, I stand behind it," said Kathy Geneso, a homemaker in Saginaw, Michigan, who has a 2007 Camry that is subject to the recall.

"But with all the media reports I keep seeing, I am very well aware of what I am doing every time I get behind the wheel."

John O'Malley, manager of Camelback Toyota in Phoenix, said most of the calls the dealership is receiving still show strong support for Toyota.

"We've got a great customer base and loyalty, and we're going to take care of (them) the very best that we can ... in the hopes that they'll stay with us," said O'Malley.

Toyota Motor Corp and its dealers are being buffeted by a storm of bad news as questions about its products run deeper and spread wider nearly every day.

On Thursday, federal regulators said they had received 124 complaints about momentary braking problems after motorists rolled over bumps or potholes in 2010 Prius models.

Up to 19 U.S. crash deaths over the past decade may be linked to accelerator-related problems at Toyota, congressional officials have said.

The crisis is expected to cost Toyota $2 billion in lost sales and other costs by the end of March, keeping the automaker in the red for the year, and has rocked its reputation for quality.

The U.S. recall includes the RAV4, Corolla, Matrix, Avalon, Camry, Highlander, Tundra and Sequoia.

The replacement part -- a steel reinforcement bar the size of a postage stamp -- is designed to reduce friction in the accelerator and to prevent sticking, and reached many dealers on Wednesday.

In addition to extending hours and hiring more technicians to handle the repairs, which take less than an hour, some dealers offered complementary oil changes, sent technicians to customers' homes and made available rental cars.

"I have not fielded one angry call. I've talked to over 300 customers," said Kurt Schiele, general manager, Elmhurst Toyota Scion in Elmhurst, Illinois, which sells some 2,000 vehicles a year and services 150 to 200 each day.

"It's a bad situation and we understand it. Any recall is a serious recall, but we serviced 34,000 in 2009 at this dealership and never once have we had an acceleration issue or complaint. So it is a very rare situation. But we're not taking that lightly," he added.

In Phoenix, O'Malley said "ninety-plus percent" of customer calls have been positive about Toyota.

RECALL CONFUSES CUSTOMERS

Many of the calls to dealers are from customers who are not sure their vehicles are under recall. Toyota has recalled about 2.3 million vehicles for problems with a sticky accelerator pedal that its 1,200 U.S. dealers are beginning to fix this week. Separately, federal regulators are probing reported problems with the braking system on the popular Prius hybrid.

Another Toyota recall involves 3.25 million vehicles because floor mats can jam the accelerator and hold it in an open position. Most of the vehicles in the recall surrounding sticky accelerators are also involved in the recall that Toyota says are caused by stuck floor mats.

"Loyalty depends largely on demographics," said Aaron Bragman, analyst with HIS Global Insight. "Baby Boomers are still staunchly standing by Toyota."

Bragman said that it will take a while for Toyota "burn through" the goodwill it has developed with people who are over 40. But their children may not be as patient.

"The younger buyers don't feel the same way," he said.

Richard Czyz, a Toyota Avalon owner from the Chicago suburb of Elk Grove Village, Illinois, said he was "concerned."

"When this came out and you sensed there was a problem there, maybe they didn't attack initially, but now that they are addressing this a little more aggressively I feel pleased."

Pete Smith, general manager of Bob Smith Toyota north of Los Angeles, said the "phone call volume has been off the charts" at his dealership, with about 100 customers a day seeking information about the recall.

"We're just reassuring them that their car's in good shape, and if they've experienced any (unintended acceleration) symptoms, then we need to check it," said Smith, who expects his dealership to handle 4,000 to 5,000 recall repairs to floor mats and sticking pedals in the next 30 to 45 days.

Some customers appeared to be little inconvenienced by the recall. Among them was Philippe Ndayisenga, 30, who brought his 2009 Corolla for repair in Phoenix.

"They've been very helpful, they didn't ask any questions, and (the repair) will only take a few minutes," said Ndayisenga as he waited in the service department for his car.

"I actually think that I will be getting a new Toyota in the future."

(Additional reporting by Karin Matz and Nick Carey in Chicago; Steve Gorman in Los Angeles; Kevin Krolicki and Bernie Woodall in Detroit; editing by Matthew Lewis)