Toyota Recalls Expected to Cost Billions
The cost of Toyota Motor Corp.'s two high-profile recalls totaling 9 million vehicles may run as high as $2 billion, The Detroit News reported.
"It's definitely in the billions, and it includes the cost of fixing the problems and the additional incentives that Toyota will have to offer at least the rest of this year," Jesse Toprak, an analyst with auto pricing firm TrueCar.com, told the newspaper.
The Japanese automaker also faces potentially huge costs associated with long-term damage to its reputation and litigation.
Toyota already has been forced to pump up sales incentives to attract buyers for the models that weren't affected by its Jan. 21 recall of 2.3 million vehicles to fix faulty pedals.
Toyota's sales slid in January after the company was obliged to stop selling models covered by the recall. In a costly move, the company also halted production of the eight models for a week.
Toyota may recoup some of the lost business, estimated at 20,000 vehicle sales in January, after fixing the pedals.
But the damage to its once sterling reputation could enable Toyota's Japanese rivals and resurgent Detroit automakers to grab some of its U.S. market share over time, Citigroup analyst Itay Michaeli told The Detroit News.
More Industry

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →