During a trip to Japan last October, I visited one of Toyota's suburban Tokyo showrooms. It was equipped with video games, carnival rides, baby strollers and even manicure kits to welcome visitors.
I was also told that to win over customers, some Toyota dealerships hold costume parties and raffles with home electronics for prizes.
The idea behind all this is to convince young buyers Toyota is not a boring brand, but a progressive one. As one salesman told me: "We try to create a warm feeling, especially to appeal to young women so they feel they can drop by casually."
Toyota is committed to a similar strategy around the world and it appears to be working as Toyota marked its second straight year of record profits, earning $10-billion (U.S.) for the 12 months ended March 31. A 55-per-cent jump from the previous year.
Last year, Toyota surpassed Ford Motor Co. as the world's second largest auto maker after General Motors in terms of vehicle sales.
Toyota has long had a reputation for good fuel economy and durable quality. Those qualities won over baby boomers long ago, now, Toyota is determined to extend its appeal to boomers' children.
That's where the Echo hatchback comes in. Last summer, Toyota Canada introduced it as a Canadian-only model -- a move to defend the company's entry-level segment against Korean-built imports.
Toyota Canada officials say they must continue to offer very affordable cars or risk losing young buyers forever. After all, most of those young buyers do eventually move up to more expensive models.
