(Host) In March, Toyota announced that it had found problems with some of the frames on its popular Tacoma trucks.
American-made frames on 1995 through 2000 model year Tacomas were rusting and failing at a higher than normal rate.
So, Toyota has come out with a special offer. The company will either repair the frame for free and extend the warranty; or it will purchase the truck back at one-and-a-half times the Kelly Blue Book retail value.
As VPR’s Nina Keck reports, it’s made a busy time of year in Toyota service departments even busier.
(Sound of garage)
(Keck) At Alderman’s Toyota in Rutland, over 100 affected Tacomas are parked in an empty lot next to the dealership. Owner Phil Alderman says when all is said and done, he expects to process several hundred trucks, one of which is being hoisted for inspection as he speaks.
(Alderman) "Essentially, most of the Tacomas that come in – that we know that have frame damage – they can actually see it before they put it on a lift. But they have to go through a certain test procedure of certain things that they have to do."
(Keck) What you’re hearing is the mechanic hitting different parts of the frame with a hammer to check for cracks or holes. Service personnel will spend about half an hour going over each frame. Alderman says they’ll spend another 30 minutes filling out paperwork.
(Alderman) "Then it goes into my service manager and my service manager has to fill out a form. And if this truck were to fail he’ll have to come out and he’ll have to note the size of the tires, if it has aluminum wheels, what transmission is in it. . . whether it has power windows, power locks, because the customer is reimbursed for every single thing that’s on the vehicle."
(Keck) Toyota’s extra workload has had a ripple effect. Area rental car agencies, which are providing cars for Toyota customers while their claims are being processed, have also seen their business jump.
With more than 40 years in the car business, Phil Alderman says he likes that Toyota is standing by its product. But he admits the car maker is paying a huge price. His dealership alone will buy back about 200 trucks at an average price of about $10,000 apiece, putting close to $2 million into the local economy.
(Alderman) "Some of them, yes, they’re buying new vehicles. Some of them are buying used vehicles. And some of them are paying off credit card debt. It has put a lot of money into a very small town in a very short period of time. That will have to have a much greater impact than any government checks have ever had."
(Keck) Paul Bishop, of Marshfield, Vermont, joked that it felt a bit like he won the lottery. Last week, he bought a used 1999 Tacoma for $4,000. A day or two later, he says, he found out he might be able to sell it back to the dealership for close to $7,000.
(Bishop) "It sounds like a classic case where maybe they have some lemons that they’re making lemonade out of."
(Keck) Which is exactly what any corporation hopes to do when they find a problem.
For VPR News, I’m Nina Keck in Rutland.