On February 2, a few days before a big article on engine sludge appeared in the publication Automotive News, Toyota came out with the first "Special Adjustment Policy" for this horrible condition. This engine sludge, according to Toyota, was due ONLY to OWNER NEGLECT. The owners disagreed, especially the Toyota owner in the article mentioned above.
At any rate, Toyota agreed to send out 3.3 million letters to the owners of the affected vehicles: 1997 Camry, Sienna, Avalon, Solara, Celica, Highlander, and Lexus ES 300 and RX300 models with either the 1MZ 3.0L V-6 or the 5SFE 2.2L inline-4 engines.
Under this policy, Toyota agreed to pay for the repairs for a period of 12 months. It was a "one-time repair offer."
On February 14, the BBB gave Toyota an UNSATISFACTORY rating based primarily on allegations of warranty and repair problems. You see, many owners said that Toyota refused to honor its new vehicle warranty when sludge was found. It refused to do this even in cases where receipts were produced. All sorts of excuses were made for not wanting to see the receipts. Some owners even lost in corporate-sponsored arbitration despite having receipts! In some cases, the arbitrators would not LOOK at the receipts. Sad, but true.
Given these allegations of warranty denial, it is no wonder that the BBB would give such a rating to Toyota (SEE BELOW). BUT, what happened just one month later???
Very few owners had gotten the letter from Toyota and very few cases were yet resolved in this month. The owners dutifully contacted the Toyota hotline to begin documentation for reimbursement for repairs made previously. The process was extremely slow.
Lo and behold, on March 28, the BBB suddenly and inexplicably gives Toyota a SATISFACTORY rating (SEE BELOW). Now, remember, this is when the first letter came out and caused quite a negative reaction among the owners! You see, it was the OWNERS who were blamed in 100% of the cases. Toyota clearly stated that it was UNAWARE of any sludge cases where the owner had PROPERLY maintained his/her vehicle.
If anything, the UNSATISFACTORY rating was the most appropriate one at this time given the nature of the allegations made against the owners by Toyota. HOW could the BBB change the rating like this? Are revenues used to influence the BBB's actions? One could naturally assume so based on the illogical nature of this change in status in the middle of the "sludge storm."
A few days later, on April 3, Toyota came out with what the owners referred to as SPA #2, but Toyota calls it CSP or "Customer Support Program." This policy broadens the first policy to include unlimited mileage and/or an 8 year time period in which repairs can be made. Let's not forget that while this coverage is made available to the owners, they are still being blamed for the problem. To soften the owner reaction to the first letter, Toyota STOPPED sending it out. Toyota says it was sent to one million owners. The second letter is currently being mailed although at a snail's pace!
The sudden change in status from UNSATISFACTORY to SATISFACTORY begs the question, how much influence does Toyota have over the BBB? Afterall, there was not any time at all between the two reports. Hardly any owners had even filed paperwork with Toyota yet let alone received reimbursement for repairs. There is NO WAY the rating status could have changed based on OWNER INPUT.in addition, given the negative reaction to the first SPA letter, Toyota's rating would have dropped, not elevated.
Was this rating changed because Toyota simply told the BBB that it ANTICIPATED the change in satisfaction of the customers? Does the BBB not wait for hard copy evidence from the OWNERS themselves? Can businesses "buy" their ratings? I don't think I am alone in wanting to know the answers to these questions.
This situation is most peculiar. I hope someone will investigate further. Shouldn't a business EARN its rating FAIRLY? This is the ASSUMPTION that the buying public has made. We'd like the BBB and Toyota to help us understand what has transpired.
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Toyota Motor Sales U S A, Inc.
This Report was developed from various sources, including the business, governmental agencies, and the experience of the company's customers.
For further information contact the Better Business Bureau of the Southland
315 N. La Cadena, Colton, CA, 92324
1- (909) 825-7280
Toyota Motor Sales U S A, Inc.
Business Started: Unknown
Address: 19001 South Western Avenue
Torrance CA 90509 (Executive Offices)
File Open Date: 10/06/95
Last Report Date: 02/14/02
Principal Contact: Yoshio Inaba
Phone: (800) 331-4331
Fax: (310) 381-5350 Bureau ID: 13022092
EMail: Not Available
Web Address: Not Available
Nature of Business: This company's business is a manufacturer of Toyota vehicles.
Bureau File Experience:
Based on our standards, we rate this company as having an unsatisfactory business performance record. Complaints contain a pattern of allegations concerning warranty and repair issues. Some customers complained they experienced repeated problems with certain components, found zone office representatives unwilling to help with repairs costs, or were dissatisfied with extended warranty claims procedures. The company responded to some complaints by offering additional repairs, explanations for denying assistance, or by issuing partial refunds or reimbursements in some cases. Some were close The Better Business Bureau does not endorse, recommend or disapprove of any product, service or company.
Additional Phone Numbers:
1- (310)-618-4000 & 1- (310)-618-7814
Toyota Motor Sales U S A, Inc.
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This Report was developed from various sources, including the business, governmental agencies, and the experience of the company's customers.
For further information contact the Better Business Bureau of the Southland 315 N. La Cadena, Colton, CA, 92324 1- (909) 825-7280
Toyota Motor Sales U S A, Inc.
Business Started: 01/01/57
19001 South Western Avenue Executive Offices
File Open Date: 10/06/95
Last Report Date: 03/28/02
Principal Contact: Yoshio Inaba
Phone: 1- (800)-331-4331
Fax: 1- (310)-381-7756
Bureau ID: 13022092
EMail: [email protected]
Web Address: http://www.toyota.com
Nature of Business: This company's business is a manufacturer of Toyota vehicles.
Bureau File Experience:
Based on our standards, we rate this company as having a satisfactory business record. To be rated satisfactory, we must first have company background information. The company must also have been established long enough for us to gain a clear understanding of the nature of its business to determine that it is not a marketplace problem. Finally, the company must have given proper consideration to any matters we may have referred to it. Our complaint history for this company shows that any customer complaints brought to the company's attention by the Bureau have been properly addressed. A Better Business Bureau report is based on our file information and experience with an individual company over the past three years. The Bureau does not endorse, recommend, or disapprove of any company, product or service.
Additional Phone Numbers:
1- (310) 468 - 4000
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Charlene
Vienna, Virginia
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