Over 90 per cent of 2,000 potentially affected cars in Malta involved in the Toyota accelerator pedal recall last February have been inspected, Geoffrey Debono, managing director of local agents Michael Debono Ltd told The Times Business.
"One of our core values is to offer customers an ownership experience that exceeds their expectations," Mr Debono said. "In this situation we responded quickly to put our customers' mind at rest. Once we had the list of potentially affected vehicles in our possession, through Transport Malta we established the current registered owner for the vehicle, imported as new or used."
Mr Debono pointed out there have been no reported cases of unintended acceleration in Europe on Toyota vehicles.
Michael Debono Ltd, the company which sold the first Toyota in Europe, celebrates its 50th anniversary as exclusive representative for the Japanese car maker in Malta this month. The anniversary falls at a challenging time for the brand internationally and in Malta, where Mr Debono predicts new car sales will hit a 20-year low as the effects of mass second-hand car importation continue to wear the market down.
Asked how more recent events and negative international press have influenced brand perception in Malta, he joked: "Positively! Everyone knows of the Toyota brand now, and its strong reputation for manufacturing high quality and reliable products. The Maltese have great respect for Toyota, and thanks to customers who have experienced the brand, we are confident that its reputation will not be affected by the recent recalls."
Locally, the new car market has faced several tests over the past few months, particularly following the changes in the tax regime. Previously-owned car imports, including numerous high specification luxury cars, are still pouring in to Malta at a staggering rate of 750 a month with motorists taking advantage of attractive pricing.
Mr Debono said that in the first three months of this year, new car sales are 40 per cent down compared to the same period last year.
"Our new car volume has decreased proportionately in the new car market," he added. "The Maltese public are generally very enthusiastic and proud of the vehicle they own and their preference is to own a new vehicle to benefit from peace of mind, the latest technology and design."
A few years ago, the Żebbuġ company recognised that customers who choose to purchase a pre-owned vehicle should be given the opportunity to have the same peace of mind as when they buy a new car.
Toyota is Malta's most imported brand, and Michael Debono Ltd, he said, can offer customers a vehicle of their choice at a competitive price, safe in the knowledge that the company was available for after-sales and support, backed by expertise and access to technical information on the Toyota brand and in-house panel beating and spray painting facilities. Toyota's "used programme" vehicles are of the highest quality, and come with an unconditional one-year warranty along with after-sales offers, Mr Debono stressed.
He argued, however, that the pricing disadvantage on hybrid vehicles has been only partially addressed by the authorities, at the same time as marques across the world add hybrid models to their line-up. As the representative of an international car-maker with considerable green credentials, Mr Debono's disappointment is comprehensible. His own company also showed its own commitment to the environment last year when it installed 1,000 square metres of photovoltaic panels to generate 50 per cent of its energy requirements.
Over the past few years, Toyota has continued to honour its pledge to producing environment-friendly cars with the introduction of the new-generation Prius, the iQ and the Auris hybrid to be launched later this year, all emitting less than 100g/km.
Toyota has now sold more than one million units of the Prius and aims to sell one million hybrids a year by 2020.
"The government was one of the first in Europe to introduce an incentive on hybrids 10 years ago," he pointed out. "This incentive was removed in 2009 and since then, sales of hybrid vehicles have decreased significantly. Today, in most EU countries, hybrid vehicles enjoy significantly lower registration tax (where this is applicable) or pay no congestion tax in cities such as London. Walk down Oxford Street and notice the high number of hybrid vehicles that are on the road as a result of this incentive.
"I strongly encourage the government to reconsider its policy as hybrid vehicles are becoming increasingly popular in Malta. The benefits these vehicles bring with them are being enjoyed by an increasing number of consumers and benefitting the population with lower emissions - besides helping achieve Malta's EU environmental commitments."
Meanwhile, most car importers complain that brand-imposed standards affect servicing pricing and custom is lost to independent garages.
"I favour having high standards but this should not translate into a higher cost to the customer," Mr Debono emphasised. "Our technicians are highly trained by Toyota professionals, who have vast experience on the products we sell. We also have access to a live Toyota technical system which reviews issues encountered on the brand's vehicles around the world. When you consider the time we save on fault-finding compared to independent repairers, it is probably cheaper to repair a vehicle at an authorised repairer, namely ourselves."
He pointed out that all prices are clearly stated so customers are able to budget for the cost of the service "with confidence that it will not exceed their expectations". Michael Debono Ltd strives to provide service clients will remember with good reason.
The agent invested heavily in its state-of-the-art showroom and its service delivery levels just before the economic crisis hit. Mr Debono maintained the current market for new cars for the rest of 2010 will follow the trend of the first three months, translating a record low number of new cars registered for more than 20 years.
"Undoubtedly this will create a lot of challenges and one has to come up with innovative ways to generate value added services to customers," Mr Debono conceded. "We have diversified our business in the last few years by introducing the used car operation, establishing a spray painting facility, selling insurance, and we are now working to convert vehicles to run on gas instead of petrol. For a number of years we have been selling Toyota material handling products, which include forklifts, palletisers and stackers, and we are now actively promoting them. Lexus also provides us with another opportunity for our discerning customers who are looking for a more premium vehicle."
Mr Debono said new additions to the Toyota line-up will also offer customers more choice. The appointment of Akio Toyoda as president at Toyota Motor Corporation has brought some changes: Toyota has enjoyed a very good reputation for producing exciting sports vehicles such as the Celica, MR2 and Supra.
Mr Toyoda has said that "Toyota will build more exciting vehicles" and Mr Debono believed that within the next couple of years customers will start to see sports cars in the Toyota line-up.
"If they can match the excitement of the previous models, there is a lot to look forward to," he added.
The Debonos' extended family at the Żebbuġ premises have a few things to look forward to themselves as a programme of events has been drawn up to celebrate an important milestone for what continues to be a family business with an illustrious and eventful history.
Michael Debono Ltd was founded by Geoffrey Debono's grandfather Michael when he imported the first Toyota in Malta, marking the badge's debut on the continent. He later went on to establish other operations which were non-related to the core business. Philip, the second-generation Debono, ran the company for the best part of five decades, achieving the all-time record of more than 1,700 new vehicles delivered in 1991.
Philip Debono was also responsible for the establishment of the parts and servicing operations. His wife Therese took over the company's reins after his early demise in 2002. Her other son Michael is a company director.
"She recruited people for key positions to help modernise the organisation," Mr Debono recalled. "After I finished my studies in 2005, I joined the business to which my father had been so dedicated. In 2007, we completed the Toyota Retail Concept Showroom, after 18 months of work. The following year we introduced the used car operation, and in 2009 we launched our spray painting facility."