Report Analyzes Toyota’s Losses Two Different Ways
Toyota’s repair costs for the myriad of recalls has reached $1.5 billion after taking into account lost market share and financial losses, says analysts at Frost & Sullivan. The largest hit that the automaker has taken so far is the loss in sales of the Prius, Toyota’s flagship vehicle, especially when people looking at buying a Prius have shifted to other makers and their hybrids. Not only that, but loss of consumer confidence and the ongoing media blitz have wiped almost a fifth of the company’s value off of the Tokyo stock exchange.
The automobile transport industry has seen the loss in Toyota vehicles being shipped but now it is really showing. Toyota has suspended the sale of eight different models in the United States, which will seriously affect their sales numbers in the first quarter of 2010, but to add insult to injury it gives advantages to competitors offering trade-in incentives, especially for Toyota vehicles. Another huge hurdle for Toyota will be getting vehicles in service back onto the road, which has yet to happen, and with over 40 class-action lawsuits against the company having already been filed, it doesn’t look like Toyota will be surfacing from this mess any time soon.