Toyota Recalls Some Key Models
- 14 years ago
Toyota is learning it is tough being the world's largest automaker.
The Japanese company is halting production and sales of 6 key models that analysts say make up about 60 percent of its total U.S. sales.
The suspension follows Toyota's announcement last week that it is recalling about 2.3 million vehicles to fix accelerator pedals that stick, its second massive recall in four months.
Analysts say it is clear that Toyota is suffering from growing pains.
Jessica Caldwell is a senior analyst at auto website Edmunds.com.
[Jessica Caldwell, Senior Analyst, Edmunds.com]:
"I think with any company that is growing so rapidly and you know is becoming so large, I think you know things slip through the cracks and usually they are small things. And hopefully they are small things. But this has turned out to be one of those small things that have blown up to be a very serious safety issue, which no car company really wants."
Caldwell says consumers are already reacting, but the impact on Toyota's standing in the U.S. depends on how long production is halted and how deep the safety issues really are. The recall may be extended to Europe.
A tarnished image is not what Toyota needs as it tries to bounce back from a money-losing year.
But analysts are confident Toyota can rebound, like Ford did after deadly crashes linked to Firestone tires.
Toyota, however, does not have much time to idle, analysts add. Ford is in the fast lane and Asian competitors like Kia and Hyundai are very visible from Toyota's rear view mirror.
The Japanese company is halting production and sales of 6 key models that analysts say make up about 60 percent of its total U.S. sales.
The suspension follows Toyota's announcement last week that it is recalling about 2.3 million vehicles to fix accelerator pedals that stick, its second massive recall in four months.
Analysts say it is clear that Toyota is suffering from growing pains.
Jessica Caldwell is a senior analyst at auto website Edmunds.com.
[Jessica Caldwell, Senior Analyst, Edmunds.com]:
"I think with any company that is growing so rapidly and you know is becoming so large, I think you know things slip through the cracks and usually they are small things. And hopefully they are small things. But this has turned out to be one of those small things that have blown up to be a very serious safety issue, which no car company really wants."
Caldwell says consumers are already reacting, but the impact on Toyota's standing in the U.S. depends on how long production is halted and how deep the safety issues really are. The recall may be extended to Europe.
A tarnished image is not what Toyota needs as it tries to bounce back from a money-losing year.
But analysts are confident Toyota can rebound, like Ford did after deadly crashes linked to Firestone tires.
Toyota, however, does not have much time to idle, analysts add. Ford is in the fast lane and Asian competitors like Kia and Hyundai are very visible from Toyota's rear view mirror.