Monday, May 21, 2007

Toyota Wants Your Income!

Thought you would be interested in this info From Automotive News today:

Toyota is forcing dealers to make big investments in service bays, even though some say their service areas are underused. It's part of the company's growing pains as more Toyota vehicles in operation demand more service. The number of its vehicles on the road has skyrocketed this decade, while the number of Toyota dealerships has stayed about the same. Now the company is clamping down on dealers who fail to meet long-standing guidelines prescribing how many service bays each outlet must have. Some dealers say Toyota is getting tough with stores that don't comply by shortening the length of renewed franchise agreements. Nancy Davies, vice president of retail market development at Toyota Motor Sales U.S.A. Inc., says the company has become "more emphatic" about service expansion. But she says there has been "very little push-back" from dealers. And Davies says service capacity is only one factor when franchises come up for renewal.The average U.S. Toyota dealer has 23 service bays. The company expects that to grow to 30 by 2012

Are you getting your fair share of Toyota business? As Toyota ramps up to increase their market share of the service sector, you should be evaluating your market area and determine what changes you should consider as the market changes.

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