In January 2010, Toyota has recalled more than 2.3 million vehicles around the world due to break pedal and accelerator problems.
Before this 2010 recall, a previous recalls concern that accelerator pedals could become lodged under floor mats, causing sudden acceleration, which has already caused several crashes, including an accident in San Diego involving a Lexus that accelerated to more than 190 kilometres before and killing four people.
However, “this time, the recall is due to problems with the actual gas pedal mechanism, causing the accelerator to become stuck regardless of whether the vehicle contains a floor mat. Toyota said in certain rare cases, the gas pedal mechanism wears down, causing the accelerator to become harder to press, slower to return or, in some cases, stuck.”
Moreover, the forecast of the degree of impact is too early but it is clear that Toyota sales have been pulled down. This is the reason why Toyota may lose it’s shares in the US market.
According to Himanshu Patel, an analyst at JPMorgan, said in an e- mail yesterday accompanying a report, “the damage to the automaker’s reputation may be repaired, and we are not that pessimistic about Toyota’s long-term brand damage”.
“Toyota’s recalls will affect its U.S. market share in the near term, but they are unlikely to have a material impact in the long term,” the report said. “Toyota’s share losses will primarily accrue to Honda and, perhaps, Nissan and Hyundai.”
