I decided to give Toyota a little break and post some of the positive news that’s coming out of the beleaguered automaker. Despite all the negative press, Toyota seems to be persevering, and might even have an unexpected sales rally in March. Here are some reasons why.

Advertising:

According to the Associated Press, Toyota has initiated a new TV ad campaign that pushes the idea that Toyota customers remain loyal. This campaign comes after the automaker’s $1 billion ad push in Q4 2009. There is very little mention of recalls in the new TV spots, as the company is trying to redirect the corporate message towards the company’s stronger points, namely relatively good customer service, resale value and safety, recalls excluded of course.

The campaign started on March 2, and will go through until April 5. One example given by the AP is an ad featuring a baby boomer couple who just bought two brand new Toyotas in February, during the heat of the recalls. Mark Murphy, the buyer of the vehicles, says “These cars that we’ve had have been exceptionally safe.” Of course he’s only owned them for a few weeks, but so far so good.

Other commercials feature Toyota dealership employees thanking customers for their support and loyalty (example above).

Marketing analysts are giving Toyota props for the direction of the ads. Troubled brands need to focus on their strengths to reestablish corporate identity, and, in my opinion, dwelling on the company’s deficiencies on television can only damage perceptions further at this point.

Incentives:

Many automotive analysts believe that a part of the tepid industry-wide sales performance in February was due to Toyota buyers sitting on the sidelines, waiting for Toyota’s huge incentive push.

It’s probably a good thing they waited, because these incentives are in unprecedented, Domestic-like territory for Toyota. The automaker claims this is their first far-reaching sales program in its history.

Starting at the same time that the ad campaign began, and ending on April 5^th, the program includes financing, leasing and customer loyalty offers. Toyota is offering

0% APR financing for up to 60 months on the models affected by the pedal recall. Also included was the Yaris, unaffected by the recalls but experiencing poor sales nonetheless,

Very low lease rates on said vehicles, but also on the Venza,

Complimentary two-year premium maintenance program for new buyers. Items in this package include 24-hour roadside assistance, oil changes, fluid inspection checks, etc.

Since the announcement of the incentive, Edmunds has seen a dramatic 40% increase in purchase intent on Toyotas on their website.

Hybrids:

Toyota also remains, by a wide margin, the largest producer of hybrids in the United States. Even with Toyota’s sacred cow—the Prius—entangled in recall hell, Toyota’s hybrids sales have continued to improve. For the month of February, Prius sales were up 10.2%, and overall Prius sales are up 11.6% for the year. Toyota has sold a total of 23,147 hybrids since the beginning of 2010. While that’s a 2.5% drop from last year, it’s better than Toyota’s overall yearly sales performance of -8.7%.

Last week at the Geneva Auto Show, Toyota unveiled a new dedicated hybrid model that should further advance the automaker’s goal of doubling its hybrid lineup by the end of 2010, and offering a full hybrid lineup by 2020.

The Lexus CT 200h is a production intent vehicle, which will make it to American shores sometime in early 2011.

The CT 200h is a small, dedicated hybrid hatch. It features the Prius powertrain, which is a 1.8-liter inline-four gasoline engine mated with a 650V electric motor. For a Lexus, this is sort of an earth-shattering development. The Lexus HS 250h was given a bigger 2.4-liter four-cylinder, which increased performance but damaged gas mileage (35 mpg combined vs. 50 mpg on the Prius). The new Lexus hybrid has a smaller wheelbase than the HS 250h and Prius, which means that it may have less interior volume and a lighter curb weight. This makes me believe that the CT 200h will have similar gas mileage to the current Prius.

From a marketing perspective, the mantra has always been that luxury buyers will not compromise on performance. Given the lukewarm reception of the HS 250h, maybe the CT 200h is Toyota’s attempt to test this belief?

Also expected is a Sienna hybrid, a compact Toyota branded dedicated hybrid, and a plug-in Prius hybrid within a 12-18 month time frame.

More Pictures below:

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