Wednesday, September 30, 2009

Toyota Recall

Toyota Recall
Following on from the breaking news yesterday that Toyota are issuing their biggest recall in the U.S over problems with floor mats, we have an article for you to read now which compares Toyota’s recall to other recalls that have happened this year. Over at CarGurus, they have played down the seriousness of the floormat issue, saying that it is just a ‘minor’ problem and can be solved simply by removing the sidemat from affected vehicles.
Then they have compared this recall with other incidents that have caused companies to recall vehicles. These include General Motor’s recall of 1.5 million autos in April over the possibility of electrical fires. Then they have highlighted Chrysler’s recall of 13,350 minivans in February, again due to the risk of fire due to faulty electrical circuits. Personally we don’t agree with CarGurus’ admission that this latest Toyota Recall is a ‘minor’ problem. Its good to finally see Toyota willing to address the issue.
Toyota is forecasting a 450 billion yen ($5.0 billion) loss for the fiscal year through March 2010, although hopes surfaced have lately that the worst may be over, with sales recovering enough to allow Toyota to project a narrower loss. The recall will affect 2007-2010 model year Toyota Camry, 2005-2010 Toyota Avalon, 2004-2009 Toyota Prius, 2005-2010 Tacoma, 2007-2010 Toyota Tundra, 2007-2010 Lexus ES350 and 2006-2010 Lexus IS250 and IS350. I agree with the analysts–a floor mat recall isn’t a deal killer for Toyota. However, it does open the door for other companies (Honda? Hyundai?) to market their superior quality in an attempt to lure in concerned carbuyers.

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