Part 5/8:
The dynamic between dealerships and Toyota's corporate leadership is becoming increasingly strained. Dealers are pressing for reduced production to alleviate inventory pressures, but Toyota hesitates, fearing a loss of market share. This disconnect creates a vicious cycle: unsold vehicles lead to rising storage costs, which further strain dealer profitability.
Damage to Reputation
Toyota's long-standing reputation for dependability and customer satisfaction is at risk. Consumers are openly criticizing the brand’s pricing strategy, which is perceived as increasingly out of touch with market realities. There is a growing sentiment among traditional Toyota buyers who are now exploring more competitive brands in search of better deals and innovative features.