In 2008, Toyota sold nearly nine million cars worldwide, generating revenues of more than $250 billion.
As the company continues to grapple with the fallout from its recent recalls, we look at the likely effect on Toyota sales and the wider implications for the Japanese economy.
Edward Lincoln, Director of the Center for Japan-U.S. Business and Economic Studies and Clinical Professor of Economics at New York University Stern School of Business, joins Daljit Dhaliwal to discuss the issue.
He estimates the debacle may cost Toyota one billion dollars. Lincoln says the company can probably weather the crisis — but not without some damage to its reputation.
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03/02/2010 :: 07:23:57 PM
Steve Says:
I am a former mechanic with two degrees in Aviation fields (one for maintenance) and a background in engineering and as a mechanic. In my opinion Toyotas problems are just starting. First it was a floormat problem. Now they are trying to say it is a pedal problem. In the end I believe they are going to find it’s an electrical problem. I also own MANY vehicles and like to buy and sell them. If Toyota prices fall I may buy one (or more) but I would not drive one at this time. Sure it’s a rare chance to happen but we should not be the guinea pigs. Toyota should be ashamed but at the same time they did what they had to to maintain sales and actually grow them. What would the effect be if they simply said “we have an acceleration problem but we have no idea what it is?” Don’t be blinded by the vaunted Toyota quality, eveybody makes mistakes.