Toyota Sees Sales Hit from Massive Recalls
NAGOYA, Japan – Toyota Motor Corp., reeling from massive recalls on three continents, may have trouble meeting its 2010 sales target because of quality problems, a top executive told Automotive News Europe.
Shinichi Sasaki, vice president in charge of quality, said it was still unclear what the financial impact of the recalls would be. But sales will likely take a hit.
Since last fall, Toyota has recalled some 7.7 million vehicles in the United States, Canada, Europe and China to fix problems that could trigger unintended acceleration in its cars. The number recalled falls just short of the 7.8 million cars Toyota sold worldwide last year.
“The sales forecast is a concern for us,” Sasaki said today at the company's first press conference in Japan to address the rash of quality problems. In the past, Toyota has experienced a 20 percent fall off in sales in the month immediate following recalls, he said, and this time the impact is expected to be bigger.
Last month, Toyota forecast global sales to climb roughly 6 percent to 8.27 million vehicles. The figure includes sales of its truck subsidiary Hino and its small car affiliate Daihatsu.
Toyota will announce its third-quarter earnings on Thursday. All eyes will be on whether the world's biggest automaker changes its earnings or sales outlook.
The company's current forecast calls for a second straight year of red ink. But some analysts have been predicting a slim operating profit on the back of deep cost cutting measures.
Sasaki downplayed criticism that quality control suffered because of Toyota's rapid overseas expansion in recent years. He also backed the performance of the U.S.-based company that supplied the faulty pedal mechanism triggering January's recall of 4.45 million vehicles.
“I don't think the expansion overseas affected quality whatsoever,” Sasaki said.
More Industry

Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
Consumer Outlook on the Rise
Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.
Read More →
Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →