Impact of recalls on Toyota’s Reputation

Toyota Motor Corp., one of the world’s largest automaker known for its long-term quality of vehicles is quickly loosing its reputation as well as sales as it recently expanded a U.S. recall by more than 1 million vehicles to 5.35 million.

The shares and stocks dropped significantly since 21st January, when Toyota announced a separate recall of 2.3 million U.S.-built vehicles after finding a pedal fault.

The news of its recall spread like wild fire and many people are scared to buy Toyotas irrespective of the model. All the happenings are keeping people out of the Toyota stores. The long-term reliability and safety features, which made Toyota, the No.2 brand in US sales is losing its reputation, hard earned from many decades. Two recalls by Toyota within a span of three months compounded concern about the quality of the vehicles in peoples mind.

The company recently said that it would suspend the U.S. sale and production of eight models involved in the recall. These models account for more than half its deliveries in US including its top-selling Camry and Corolla models.

The models recently added to the recall are 2008-2010 Highlander sport-utility vehicles, 2009-2010 Corolla compact cars, the 2009-2010 Toyota Matrix hatchback and 2009-2010 Venza wagons.

You may also like to read:
Best Wagon Models For 2010 Consumers
Russia Launches ‘Cash-For-Clunkers’
Yuejin Motor Adds Holding In SAIC Motor To 5.5%
Trends in Sedan’s Design
Porsche Introduces Fast And Economical Hybrid Concept Car
Will Auto recalls hit the industry at a crucial time of recovery?