After the recalls, apologies and lost sales, Toyota Motor Sales Inc. dealers in North Jersey welcomed news that the federal government has so far found no evidence of electronic problems causing sudden acceleration.
"We've been believing all along that there's nothing really wrong with our vehicles," said Michael DeLaCruz, general manager of Parkway Toyota in Englewood Cliffs.
The National Highway Traffic Safety Administration told Congress last week that preliminary findings of the agency's investigation showed no electronic defects. Drivers failed to apply the brakes in 35 of 58 crashes tied to unintended acceleration, the agency found.
Bill Strauss, president of Crestmont Toyota in Pompton Plains, said the report reinforced his theory that the government overstated safety concerns with Toyotas to boost sales of domestic carmakers.
"I thought in this country we were innocent until proven guilty — but not if you're a carmaker," Strauss said.
Fred Radulic, general manager of Toyota of Hackensack, called the government findings "great news." That dealership, on River Street in Hackensack, saw sales plunge this year when news of the potential dangerous defect spread, Radulic said. In February, he said, the dealership sold about 80 cars, down from the 250 that roll off the lot in a typical month.
Service revenue from recall-related repairs helped offset a drop in sales revenue, and the dealership's sales surged the next month to more than 400 vehicles, he said. While sales have bounced back, he added: "You still lost a lot of revenue and sales."
Despite its global recall, Toyota posted strong earnings for the three-month period ended June 30, the first quarter of its 2011 fiscal year.
Toyota reported 1.8 million vehicle sales worldwide in the last quarter, up from 1.4 million in the same period a year ago. The Japanese company also swung to profitability in the quarter, earning $2.2 billion, compared with a loss of $900 million the same period a year ago.
David Whiston, an analyst at the investment research firm Morningstar Inc. in Chicago, said Toyota's market share in the United States this year through July only fell about 1 percent, compared with the same period last year. He attributed the decline to safety concerns but also competition from rival Hyundai.
"I wouldn't say it was catastrophic damage — it was noticeable damage," Whiston said, referring to Toyota's safety questions. "I don't think it's a long-term problem."
Customers at the Hackensack Toyota dealership on Tuesday shrugged off any suggestion of possible defects.
Incentives that Toyota rolled out in the wake of the recalls – deals on maintenance and financing — just sweetened the deal for Evan Little and Elizabeth Tactuk, a Wayne couple in the market for a blue Toyota Corolla.
"They're reliable, and they last forever," said Little, 19, a jackhammer operator.
Pat Sano of Long Island, who supervises bus maintenance in New York City, said he was initially worried about possible defects, especially because his son, sister and other relatives drive Toyotas. No one in his family ever experienced safety or defect issues, he said.
Nevertheless, after some online research, Sano became convinced there were no problems.
"I'm more than satisfied," Sano, 60, said, shortly after he bought a certified used 2008 Toyota Tacoma pickup.
This article contains material from Bloomberg News.
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