Honda, Toyota Recalls Open Door for Domestics

Toyota’s recall millions of vehicles was followed earlier today by over 600k Honda Fit recalls. If ever there was a time for domestic automakers to cash in on the woes of their once-unbeatable Japanese competitors, that time is now.

Ford, Chrysler, and General Motors each jumped in quickly by offering a “helping hand” to through new incentives (GM, Chrysler, Ford) going after the recalls, specifically Toyota. Is this a flash in the pan, a quick grab for market share while the leader of the automotive world and its formidable counterpart are licking wounds?

While some would say this is just a temporary setback, we believe that how each is able to maintain positive and combat negative buzz regarding all of their actions will determine who will be able to take full advantage of this rare sign of weakness. A case can be made that the market has been primed for a while to open the door for the domestics simply because they each hit rock-bottom over the last year and a half, particularly Chrysler and General Motors.

There will be two keys that must be exploited for the domestics to sustain this momentum: they must prove that their technology has caught up with that of imports and they must maintain the buzz with social media. It’s in the sentiment transmitted between consumers that will have more sway than anything on the news or through advertisements.

In the end, the company that takes the most advantage of automotive social media will be the winner. Mark our words: the recall is just the start. If Honda and/or Toyota is able to turn the buzz around quickly and decisively, the domestics will only see a temporary boost. If the domestics, any one, two, or three of them, are able stay on the high-road while allowing their fans to poke at the imports, they have a chance to make up serious ground on a long-term scale.

* * *

Read more automotive opinions on this blog network.