Five Ways Toyota Recall Could Potentially Harm the Japanese Automaker

The 2010 Toyota recall is not going to be a good deal for the brand that claims to have the best selling cars in America. Toyota has always prided themselves on quality and safety; although today their safety and quality control standards aren't exactly coming up to par. Below are five reasons why Toyota may not do so well in the upcoming years from a back lash of unhappy consumers.

1) Toyota brand products themselves will most likely not be soaring off of dealership lots with the new accelerator pedal and floor mat recall as well as their hybrid lines ABS short comings. Nearly nine million Toyota brand products have been recalled. This recall alone will cost them millions in technician repair labor hours as well as parts replacement. It is projected that the shock wave of the Toyota recall will cause their worldwide unit sales to drop over by a million count for the upcoming year with 9 models being re-called : Avalon, Camry, Corolla, Highlander, Matrix, Prius, Tacoma, Tundra, and Venza it's plain to see that Toyota is in big trouble; especially with rumors of a cover up.

2) The Toyota recall isn't only restricted to their flagship brand it also includes their line of luxury cars such as the Lexus IS 250, IS 350, and ES 350. Many luxury car buyers will most likely lose faith in the luxury car brand which could cause sales to fall miserably. Because of the recall many new luxury car buyer may turn to the big three: Ac ura, BMW, and Mercedes Benz; especially with the collision that killed four people August, 28, 2009 in a Lexus ES 350 in San Diego, California.

3) Toyota's brand Scion may also be affected from the recall with consumers potentially losing faith in the reliability of the manufacturer. Toyota owns Scion 100% and the line is just in its infancy stages of development. A recall of this magnitude could severely cripple the newly sprouted brand.

4) As a result of the recall Toyota stocks will most likely fall into treacherous territories that it may have never seen before. Falling stocks and a lack of unit sales from the recall could potentially cause a financial crisis at Toyota for paying back their 3 billion dollars government supported loan. The ripple effect of this will also most likely cause layoffs of thousands of workers and have the possibility for certain manufacturing plants to be closed down, further crippling the already financially exhausted automaker.

5) Another possibility for the recall is that consumers will lose faith in other companies that Toyota financial backs or owns a majority of. Toyota is also partnered with Subaru which for investigative consumers could cause them to lose faith also. Another company that the recall could affect Toyota is Daihatsu in which it has majority stakes. Daihatsu produced 8.54 million vehicles in 2005; only 500,000 less units then all of GM's lines combined. If Daihatsu consumers get a whiff of this recall it could potentially be catastrophic for the Japanese automaker.

http://en.wikipedia.org/wiki/2010_Toyota_vehicle_recalls

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