LOS ANGELES Toyota Motor Corp. to stop production and sales in the United States for eight models, including best-selling car is the Camry and Corolla as a component which causes 2.3 million vehicles in the recall.Dealers also will stop the sales of RAV4, Highlander and Sequoia SUV, Avalon, Matrix and pikep Tundra. Five assembly plants in North America would be unemployed for a week starting from February 1. Company spokesman Mike Goss could not say how much production loss for the termination.”Toyota has a reputation for quality that no doubt, but today was tainted. The decision was very dramatic and expensive,” said Jim Hossack, industry analyst at AutoPacific Inc. Fountain Valley, California.
President Akio Toyoda under pressure to restore the reputation of Toyota in the middle of rush competitors including cars Hyundai Motor Co. of South Korea. Second gap narrower, both in sales and quality vehicles in the U.S..This problem causes the pressure on Toyota’s stock market dropped 12% since the company announced an error in the disturbing acceleration pedal.
Last week, the explanation is followed by a record company’s withdrawal of 4.3 million vehicles over 2 months. Withdrawal was triggered by a review of U.S. government safety regulations.Toyota shares fell 4.3%, the largest in eight months, closed at 3705 yen on the Tokyo Stock Exchange. Honda Motor Co. shares, ranking 2nd in Japan, depressed 1.6%, whereas Hyundai rose 0.5% in Seoul. Nikkei 225 Stock Average fell 0.7% Japan.
This problem also affects the stock Toyota parts suppliers. Shares Denso Corp., an auto parts maker in Japan’s largest, fell 3.9% while the Aisin Seiki Co., the largest car maker national transmission, down 4.4%.Toyota last week to explain to pull back vehicles in the U.S. and Canada because of the potential damage to components made by CTS Corp..In November, Toyota to recall 4.3 million vehicles to fix a gas pedal. Around 1.7 impacted vehicles from both recall it.
Hossack added termination of the sale and production of Toyota’s best-selling car could eliminate millions of dollars in potential revenue.”Toyota should be able to give a clear message that they are more concerned with customer satisfaction from monthly earnings. The company must immediately tackle this problem,” said Jeremy Anwyl, chief executive of Edmunds.com Santa Monica, California.Managing Director of Advanced Research Japan Koji Endo said the eight models include the Toyota sales 56% last year.”In addition to the sales loss, cessation of production means Toyota still must resolve issues such as labor costs and depreciation. How much damage suffered depend on how long this problem can be overcome,” he said.
