DETROIT — It would be easy to think Toyota’s biggest problem is its damaged reputation caused by sudden-acceleration recalls, millions in government fines and massive lawsuits and settlements. But what’s hurting the company most is an aging lineup of boring cars.
Over the past decade, Toyota and its U.S. dealers had it easy. Cutting-edge design wasn’t required because the cars sold themselves on reputation. Everyone knew Toyotas held their value, were safe and got drivers from point A to point B with little drama. Then came the recalls, which called all of that into question.
Ending the year on a low note, Camry sales fell 10 percent in December from a year earlier. Corolla sales plunged 35 percent. The Camry is in danger of losing its 10-year crown as the nation’s top- selling car this year to the Honda Accord.
Ho-hum cars are “probably the worst problem for them,” says Jessica Caldwell, director of pricing and industry analysis for . “They always had their (safety) reputation to fall back on, but now that’s not the case.”
Chief executive Akio Toyoda acknowledges that the automaker is at a design crossroads and “intent on making Toyota cars better-looking,” he told reporters Monday during his first-ever visit to the North American International Auto Show. The Associated Press
