Toyota to keep U.S. sales incentives through June 1

Toyota Motor Corp is extending heavy discounts to boost U.S. auto sales for a third month, U.S. Toyota executives said on Monday, as the automaker tries to recover from a series of damaging safety recalls.

The company's record incentives, which will now continue through at least June 1, include zero-percent financing for seven models including its top-selling Camry and Corolla sedans and two years of free maintenance to all new buyers.

"Our brand has taken some bruises over the last couple of months," Bob Carter, group vice president responsible for Toyota brand U.S. sales, said in a conference call as the carmaker reported higher April U.S. sales.

"We've got to rebuild the brand to remove any cautions consumers have," Carter said. "We're going to do what it takes to keep ourselves competitive in an improving but challenging market."

Toyota's April U.S. sales rose 24 percent from a year earlier, helped by incentives "that continue to be a home run for our consumers," Carter said.

In the first four months of the year, Toyota's sales were up about 12 percent from a year ago when the industry had its lowest sales mark since the early 1980s.

Toyota was No. 3 in U.S. auto sales in April at 157,439 vehicles sold, behind General Motors Co GM.UL at 183,091 and Ford Motor Co at 167,542.