Introduction:
Toyota and its enhanced brand Lexus have long been recognized as global leaders in the automotive industry, not just for their reliable vehicles but also for their commitment to customer satisfaction and accountability. In markets such as the United States, Japan, and various parts of Asia, Toyota consistently demonstrates responsibility by addressing customer issues promptly and without unnecessary obstacles. When technical issues arise, many Toyota dealers take a proactive approach, often going above and beyond to ensure customer safety, satisfaction, and loyalty. Unfortunately, this positive reputation does not always extend uniformly across all markets. In certain regions of Europe, particularly in Germany, a stark contrast has been rising. Take, for example, some small Toyota dealerships in Bavaria, Germany, where experiences have highlighted a significant gap in understanding customer experience, loyalty, and service excellence among some family-owned businesses. Instead of taking responsibility for technical issues, these dealers shift the burden onto the customer, demanding proof of problems, which can sometimes even jeopardize customer safety. Such behavior is out of sync with Toyota’s global brand ethos and presents challenges in delivering a consistent customer experience across markets, especially when dealing with small, family-owned dealers.

7 Challenges Faced by Toyota Dealers in Europe:

1. Reluctance to Take Responsibility:
   In competitive markets like Germany, home to top brands such as BMW, Mercedes, and VW (Toyota’s main competitor), there appears to be a growing reluctance among certain Toyota dealers to assume responsibility for vehicle issues. Instead, they demand unnecessary proof from customers, even in situations that could risk their safety—a very troubling way to keep customers satisfied in the critical “moments of truth.”
2. Lack of Customer Trust:
   Unlike in other regions where Toyota dealers trust the word of their customers—understanding that nobody has time to waste—some dealerships in Germany approach customers with suspicion, requiring them to prove issues like GPS malfunctions while driving. This erodes trust between the brand and the customer.
3. Inconsistent Customer Experience:
   While Toyota’s customer service standards are high in many countries, German dealers—particularly in Bavaria—are falling short in many cases. The discrepancy in service quality creates confusion and damages the brand’s global reputation, as local dealers often lack knowledge and fail to deliver on promises. This is the very opposite of building brand trust.
4. Family-Owned Business Complacency:
   Family-run dealerships, like some Toyota ones in Bavaria, often exhibit a lack of professionalism and accountability. In my specific case, the leadership team appeared disconnected from modern practices of customer experience, service, and loyalty management, showing a lack of understanding that how customers are treated is how they will respond in return.
5. Passing the Burden to the Customer:
   Customers in Germany are frequently asked to go through unnecessary hoops to prove technical faults with their vehicles. This approach not only frustrates customers but also shifts the dealer’s responsibility to the consumer, damaging long-term relationships and demonstrating a total lack of professionalism.
6. Poor Understanding of Loyalty, CX, and Retention:
   Toyota dealers in my region (Bavaria) seem to have little understanding of how to build customer trust, loyalty, and confidence. They are more focused on making sales than nurturing long-term relationships, a strategy that could lead to declining trust and customer loss in the long run.
7. Failure to Close the Loop on Customer Feedback:
   Instead of using customer feedback to improve services, some dealers in Europe—such as those in Ingolstadt and Pfaffenhofen, Bavaria—ignore or dismiss complaints. They seem unaware of the importance of closing the loop, which is a fundamental part of customer care, whether through formal VoC (Voice of Customer) programs or not. This failure leads to a cycle of dissatisfaction and missed opportunities for improvement.

Toyota in Europe and Germany

Toyota holds a promising 7.3% market share in Europe, with over 319,000 vehicles sold and a good market share in Germany of 2.8%, according to Toyota’s last report. Bear in mind that it is very difficult to penetrate the German automotive market. However, to grow further, it’s critical that dealers understand Toyota’s global strengths in customer experience. Some dealerships seem to focus only on return on investment (ROI), missing the broader concept of value exchange with customers.

The reason for this growth for the foreign auto industry is largely due to pricing affordability. Germans are moving away from the mindset that their brands are inherently superior, especially when their models are marked up more than others, which in some cases is even illogical. Toyota offers reliability, practicality, and often better customer experience than its competition, all of which attract customers.

Short Case with Local Dealer

I am not much of a car person, preferring to walk, bike, or use public transport given my health condition (type 1 diabetes). However, following the Covid-19 pandemic, my family decided we needed a car. With extended delivery times from brands like BMW and Volkswagen—ranging from 7 to 12 months due to logistics issues—we turned to a small, family-owned Toyota dealer in our region. They were able to deliver a car within two weeks, and the initial sales experience was positive. The team was empathetic, professional, and the car had all the features we needed, such as a heads-up display. Everything seemed promising, and we even began considering Toyota for our next vehicle.

Now the Big Issue

During a recent trip to southern Bavaria, our car’s navigation system unexpectedly failed and has not functioned properly since. Here’s a detailed account of the problems we encountered:

1. We stopped at a supermarket, and when I restarted the car, the navigation system stopped working. The screen became faded, and we couldn’t enter a new address or even re-input the previous one that had been working earlier. This made it impossible to input the hotel address, and the system no longer recognized addresses that had previously been accessible. Before the trip, everything was working perfectly.
2. The map display became erratic, with sections of it fading out intermittently. This issue began during our trip to southern Bavaria and has continued ever since, forcing us to rely on Google Maps when the built-in navigation fails—an issue that now happens around twice a week when we use the car daily.
3. The navigation system has also failed mid-route on multiple occasions, leaving us stranded without directions in cities like Munich and others. This is particularly frustrating as it has never occurred before, adding unnecessary stress to our journeys.
4. The system has failed to recognize or load addresses that were previously saved or entered, contributing to our overall frustration with the system’s reliability.

• What the Dealer Did When I Reported the Issue
  When I initially informed the dealer about the issues with the navigation system, they claimed they had never encountered such a problem before. The staff member responsible for handling navigation systems was unavailable due to a medical situation, and I was told it might take some time to address the problem. As a reasonable person, I gave them two months, assuming the staff member was recovering. During this time, the navigation system would sometimes function perfectly, while at other times, it failed completely.
• After two months, I returned to the dealership to check on the repair status. Once again, I was told they would contact me, but weeks passed without any follow-up. Frustrated, I visited the dealership six times in total, but each visit resulted in no clear resolution. Eventually, they attempted to update the system, but even after this update, I continued experiencing random errors while driving. By this point, nearly five months had passed.
• As summer approached, I urged the dealer to resolve the issue because I could no longer rely on the car for our long family vacations around Europe. Despite my persistence, there was no significant progress. I escalated the matter to my legal advisor to explore next steps.
• Finally, in August, after almost seven months of dealing with this unresolved issue, the dealer put me in touch with the owner’s son, who, along with his sister, helps run the business. During our conversations, he insisted that the dealership would not address my complaint without photographic or video evidence of the navigation system malfunctioning. I found this request absurd—how could I safely film or photograph a malfunctioning navigation system while driving? This demand reflected a complete lack of trust in the customer and a fundamental misunderstanding of both customer experience and basic safety.
• After two frustrating phone calls with the owner’s son, during which he repeated the demand for visual proof at least five times, I sent a detailed email on September 12, 2024, outlining the issues. As expected, I did not include any photos, as safety and logic should take precedence. By September 26, I had received no response or acknowledgment of the email. At that point, I informed the dealership that if they did not resolve the issue, I would take legal action. Only then did they offer to take the car in for 1-2 weeks to assess the problem—a less-than-ideal solution but at least an acceptable one.
• After nearly seven months of delays and poor communication, my trust in this dealership has been severely damaged. I suspect they are more interested in going through the motions than genuinely resolving the issue or caring for their customers. Trust and relationships are everything in business, and this dealership has utterly failed to uphold the standards associated with the Toyota brand.

I will continue to update this case as the situation unfolds and to see whether they follow through on their latest promises.

We Sincerely hope Toyota-Reith will take us seriously, identify the problem, and resolve it with care. If they do, there’s a chance that this relationship can improve, and we will be satisfied, ultimately enhancing our trust in the Toyota brand and its reliability.

Conclusion and Suggestions:
For Toyota to maintain its esteemed reputation worldwide, particularly in regions like Germany, Switzerland, and Austria, dealerships need to align themselves with the brand’s core values of trust, accountability, and customer satisfaction. Here are ten practical pieces of advice for the owners and their sons at Toyota-Reith in Pfaffenhofen and Ingolstadt, as well as any other dealer owners globally, to improve their approach to customer experience and service:

1. Adopt a Customer-Centric Mindset: Focus on resolving issues rather than shifting the burden onto the customer.
2. Trust Your Customers: Building trust is the foundation of loyalty. Take customer concerns seriously without unnecessary skepticism.
3. Prioritize Safety: Never ask customers to put themselves in danger to prove a technical issue. This is your job, not the customer’s.
4. Streamline Problem Resolution: Develop a clear process for addressing technical faults without creating additional hurdles and without disrespecting your customers by taking 6-7 months to respond.
5. Embrace Accountability: As business owners, take responsibility for your services and products.
6. Train Your Staff on Modern Customer Experience Practices: Regularly train your team on customer loyalty and experience. Teach them to keep their word, something that failed in this case after 6 months.
7. Leverage Feedback: Actively listen to and respond to customer feedback to continuously improve services and quality.
8. Focus on Long-Term Relationships: Understand that loyalty and retention are more valuable than short-term sales.
9. Create a Consistent Customer Experience: Align your dealership’s practices with Toyota’s global standards to provide a consistent experience.
10. Lead by Example: The owner and his sons should demonstrate leadership by directly engaging with customers and showing genuine concern for their satisfaction.

By following these guidelines, dealerships like Toyota-Reith in Pfaffenhofen and Ingolstadt can begin to turn around their customer experience, ensuring their actions align with Toyota’s global reputation for quality and reliability.