Tokyo - Drivers in China are no longer in a hurry to own Toyota Motor Corp's cars.
Neil Hu, a sales manager at a Toyota dealership in Beijing, said he has stopped charging a 5,000 yuan ($732) premium to customers who want to skip the waiting list for RAV4 sport- utility vehicles. He took the initiative after the Japanese carmaker recalled 75,552 of the SUVs in China last month to fix gas pedals that may stick.
"I heard the situation in the US is pretty bad for Toyota," Hu said. "The recall has impacted us as well."
Toyota, which grew more slowly than competitors in China in 2009, will likely lose more market share and see a decline in local profit margin this year, analysts say. The carmaker has relied on a reputation for quality and safety to sell high margin, mid- to large-size models even as the world's biggest auto market shifts to cheaper, smaller cars, encouraged by government incentives.
With Toyota's brand damaged by global recalls of millions of vehicles, profit margins for its SUVs and Camry and Crown sedans may shrink, said Ashvin Chotai, London-based managing director of Intelligence Automotive Asia Ltd, an industry consultant.
"With this recall saga, Toyota's premium pricing power in China is gone," Chotai said. "Toyota's cars don't have enough good value for money."
Toyota has lost $24.5 billion in market capitalization this year as it recalled over 8 million cars globally to fix defects linked to unintended acceleration. The company faces at least 118 class actions in the US and at least 36 individual lawsuits claiming deaths and injuries caused by sudden acceleration of Toyota or Lexus vehicles.
Toyota President Akio Toyoda flew directly to Beijing on March 2 to apologize for the vehicle defects, after attending US Congressional hearings about the recalls in Washington. He skipped Europe's Geneva auto show, underscoring the growing importance of the Chinese market.
Toyota rose for a fifth straight day in Tokyo, advancing 0.9 percent to 3,580 yen as of 9:44 am local time. The carmaker's shares have fallen 7.7 percent this year.
The company's February China sales rose 30 percent to 45,400 vehicles, underperforming the overall passenger-car.
According to the passage, why did Toyota carmaker recall their cars in China last month? _____________
A. Because it faced law suits in the US
B. Because there were problems with the cars.
C. Because of the importance of the Chinese market
D. Because the customers are not satisfied with the charging of a 5,000 Yuan premium.
What does the underlined phrase“take the initiative” mean?
A. took the advice B. changed his mind C. took the action D. made the decision
Why did Toyota president Akio Toyota skip Europe’s Geneva auto show?
A. Because he did not think it important
B. Because he was not satisfied with the hearing in the US
C. Because he attached importance to the Chinese Market
D. Because he needed to make an apology to Chinese
After the global recalls of millions vehicles, Toyota will be impacted in the following aspects, EXCEPT_________.
A. Its brand will be damaged
B. Its profit margins will shrink
C. It will have to face law suits
D. The president will be fired
Where can read the passage? __________
A. newspaper
B. magazine
C. encyclopedia
D. a school book