Faulty Toyota Gas Pedals in Eight Models Will Get New Fix

CHICAGO, Jan. 30, 2010 — -- At Chicago Northside Toyota, business has ground to a halt. The only people kicking the tires are the employees.

"It's slowed down, the new car sales on the models that we're not able to sell," said general manager David Salomon.

Today, the National Highway Traffic Safety Administration said it had no objection to Toyota's proposed fix of its faulty gas pedals, which have forced the automaker to halt sales of eight models in the U.S. It paves the way for new parts to be shipped to dealers by Thursday or Friday of next week.

The sales stoppage has been costly. The National Automobile Dealers Association estimates U.S. Toyota dealers could lose a combined $2.47 billion if the sales halt lasts a month. Harder to measure is the damage to Toyota's once-sterling reputation.

"I'm 100 percent confident that Toyota's going to take care of its customers and that we'll be able to move forward," Salomon said.

American automakers are eager to pounce. After decades of losing customers to Toyota, Ford and General Motors are now doing their own poaching. They are unabashedly offering Toyota owners cash back and zero-percent financing on their new cars.

Many dealerships, such as Rizza Chevrolet, near Chicago, are touting the deals in full-color newspaper ads.

"We're hoping for one thing: sell more cars and increase our volume," said Joe Fosco, Rizza sales manager.

Daniel Howes, a columnist for the Detroit News, said, "It presents an opportunity for them to pick up market share and, frankly, to get more Americans in their vehicles."

But Toyota dealers such as Salomon doubt those incentives will work. He says his customers are patient and loyal.

"If I go to the store, and I want a scoop of strawberry ice cream, and chocolate ice cream is on sale, I'm still going to buy strawberry ice cream because that's what I like," Salomon said. "Some people are anxious, and once they find out all the facts, there won't be as much to talk about."