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Toyota just fumbled the ball in the red zone

Toyota Motor Corp's crippling sales shutdown of eight models due to a US safety recall will continue until at least mid-February. This is due a recall of floor mats that could trap gas accelerator pedals and pose potential hazards.
  • Toyota said it would recall as many as 1.8 million vehicles in Europe. This increases the global recalls of Toyota cars and trucks to about 7.5 million vehicles, almost as many as it sold worldwide in 2009.
  • With Toyota potentially unable to sell some of its most popular models including the Camry for a month or more, rivals readied new plans to poach sales from the world's largest automaker and the top-selling brand in the United States.
  • Ford Motor Co, Hyundai Motor Co and Chrysler Group LLC said they were rolling out incentives targeting Toyota customers.
  • The companies are following the lead of General Motors Co, which on Wednesday began offering Toyota customers payouts of up to US$1,000 or zero-per cent financing for up to five years if they trade in a Toyota for a GM vehicle.
  • In a blow to Toyota's reputation for quality, Consumer Reports said it was suspending its recommendations for the Toyota models at the centre of the accelerator pedal recall.
  • Toyota shares have lost 15 per cent since the recall was announced on Jan 21. Shares were down less than 1 per cent in trading in New York on Friday at US$77
  • Residual values of its vehicles could drop by 4 percentage points.
Source: Business Times

Toyota’s accelerator pedal recall and suspension of sales is confined to the following Toyota Division vehicles:
  • Certain 2009-2010 RAV4,
  • Certain 2009-2010 Corolla,
  • 2009-2010 Matrix,
  • 2005-2010 Avalon,
  • Certain 2007-2010 Camry,
  • Certain 2010 Highlander,
  • 2007-2010 Tundra,
  • 2008-2010 Sequoia
Highlander hybrids and Camry hybrids are not affected by this action and will remain for sale.

Further, Camry, RAV 4, Corolla and Highlander vehicles with VINs that begin with "J" are not affected and will remain for sale.

Source: Toyota Newsroom

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