Whats in it for the dealer?

[Jeremy9A]

Does anyone know why Lexus dealers are going out of there way to perform a recall?

I work at a used car dealership, and we have a 2007 Lexus RX400H (Hybrid). There is a recall for something like a PCM replacement about the hybrid drive system failing and going into a failsafe mode.

So we get this call from a Lexus dealer about an hour north of us. They offer to come and pick up the vehicle, perform the recall repair, and top off the gas tank! Usually they do not go out of there way to perform recalls for dealerships. I figured it is just really good customer service, which they are generally known for. So they came, got the vehicle, and gave us a courtesy 2011 Lexus... Even though we don't exactly need a loaner.

The next day, we get a call from a Lexus dealer in St. Louis! They want to come pick up the vehicle, perform the recall, and drop it back off. We are about 6 hours from St.Lois. That is 12 hours to pick the vehicle up and get it back to the dealer, and 12 hours to drop it back off after the repairs and get back to the dealer.

I don't know if they are getting reimbursed some insane amount for the recall? Or maybe reimbursement for their travel to get the vehicle, which they could play with the numbers on?

Just struck me as being kind of odd.

 

[OGBeno]

This is an important recall due to the nature of the unit being replaced which is the transistor unit in the Inverter/Converter unit of the hybrid drive system.

They are going to replace the transistor board with the following part kit: 04001-29148 and use 2 tubes of proprietary Toyota grease (08887-02409). Takes about 4 hours for the hybrid tech to do the work.

I would get it done.

 

[Jeremy9A]

It's at the dealer an hour north of us.

I am just curious why they were so anxious to come get the car. And also why another dealer from 6 hours away called us wanting the job?

 

[The Jade Bean]

It's at the dealer an hour north of us.

I am just curious why they were so anxious to come get the car. And also why another dealer from 6 hours away called us wanting the job?

That does seem super weird.

 

[Duane]

Taking a guess here....
If I were marketing a hybrid product right now and for hoping future success as a significant product line , it would be really bad for it's image to get negative press, cuase you know the domestic 3 would jump on any opportunity again, if a Toyota/Lexis hybrid were to go up in flames or cause a serious accident or fatality.

The domestic big 3 having a recall doesn't seem to hardly make the news and we have seen so many of them it's like oh well BUT if Toyota has a recall well that makes bigger headlines for sure.

Seemed cool as I recently had our 2000 4Runner in for an oil change and they installed a drivers side floor mat clip for free as it was missing. Obviously still concerned on any out of control throttle scenarios I assume.
I can't remember a domestic 3 ever doing such a thing on any of my vehicles. I remember taking my 98 chevy pickup in for repair when my speed sensitive steering boost screwed up at highway speeds on a correction line... just about put it in the ditch on the opposite side of the 2 way highway. GM replaed it for free but issue a recall..nope certainly not. Met a guy camping a year or so later.. he rolled his truck from a similar issue.
Sort of like the lower ball joints blowing out on Dodge Dakotas and Durango's... don't think owners still get a heads up on those. I buy an 03 Sequoia and the dealer service manager makes sure mine has been in for replaced lower ball joints already.
Part of the reason we have just Toyota's in the driveway now.

 

[bennysc]

Taking a guess here....
If I were marketing a hybrid product right now and for hoping future success as a significant product line , it would be really bad for it's image to get negative press, cuase you know the domestic 3 would jump on any opportunity again, if a Toyota/Lexis hybrid were to go up in flames or cause a serious accident or fatality.

I had a friend that had the early generation of Honda's hybrid insight. Under no TSB or warranty, they performed several repairs and replacements of the batteries, all for free.

I think the manufacturers of these hybrid systems really want to keep any negative publicity to a minimum

 

[The Jade Bean]

Seems like a reasonable guess.

 

[Jeremy9A]

Yeah.. they did go out of their way to perform all those prius recalls, and some dealerships stayed open 24 hours to do the repairs. I barely heard 10 seconds of talking on the news when they figured out the pedals were not defective.

 

[OGBeno]

also why another dealer from 6 hours away called us wanting the job?

Yes, this is a very lucrative repair for the dealerships in terms of the cost of the part.

 

[KS-Ryan]

The reason they want your recall to be done at their dealership is that they make a ton of money. That's all extra work for them and they get paid a certain amount of hours to do each job. They get really good at doing the job and can usually get it in half the time, so they score extra hours. The parts department makes money on the parts sold (even though they are warranty parts) and even the service writer makes a little. I never understood it myself, but working for Lexus for 6 years, campaigns sure saved a few of the last couple of years as they have been bleak for dealerships.

 

[ToyotaDon]

As others have said, it's bringing in a good amount of money to the dealership.

The reason you got the call from 2 places is that there is not a real high percentage of these vehicles that get this repair. The dealerships are given a list of every vehicle in their Primary Marketing Area that has the open campaign. They then have the option to contact those people and bring the cars in, so it can get competitive.

They also get reimbursed by Toyota/Lexus for the rental car they give you. It comes from their fleet, they are paying the lease on that car, and if it just sits on their lot, they are losing money.