Toyota's latest recall affects 1.7 million models Toyota can't seem to escape the supply chain problems it has battled over the past year: The world's largest automaker announced this week that it would recall 1.7 million cars on fears of potential fuel leaks.

The Japanese car maker said in a statement that a majority of the recalled cars were sold in Japan, but Lexus IS and GS luxury sedans sold in North America were also affected. The news is a blow to the company as it endeavors to overcome the quality-control issues that caused some of its models to allegedly accelerate uncontrollably last year.

Advanced Research Japan Co. analyst Koji Endo told the New York Times that the latest spat of recalls could cost the company $240 million; though that figure won't affect earnings too much, "there is a perception of here we go again, and that hurts Toyota's image, especially in North America," he affirmed.

Though the U.S. auto industry recovered last year after falling precipitously during the recession, Toyota's sales lagged. An survey showed that only 17.9 percent of buyers in the market for a car were considering a Toyota - a 3.8 percent drop from the year prior.

Jessica Caldwell, the director of pricing and industry analysis for Edmunds, said the car company "needs to overcome not just the PR damage sustained by last year's recalls, but also the reality that many of its models are stale."  
Share To:

Strategic Sourceror

Post A Comment:

0 comments so far,add yours