AP: Toyota counts rising cost of recall woes

[Omaha Steve]

Mar 16, 6:06 AM (ET)

By TOMOKO A. HOSAKA

TOKYO (AP) - A massive global recall, mounting legal bills and a battered reputation add up to a very expensive problem for Toyota.

How expensive? Depends who you ask.

With new developments emerging almost daily, predicting a final pricetag for the Japanese automaker is a daunting calculation that only some analysts have attempted.

The sole figure from Toyota itself came on Feb. 4 along with the company's October-December earnings results. It estimated that the worldwide recall, now involving some 8.5 million cars, could cost up to 180 billion yen ($2 billion), with 100 billion yen for repairs and 80 billion yen in lost sales. It said the recalls may dent global demand for Toyota models by 100,000 vehicles.

Analysts with their own estimates say the total is bound to climb higher.

JP Morgan's Kohei Takahashi expects Toyota to take a one-time 500 billion yen ($5.5 billion) hit, including recall-related costs and litigation settlements. He has lowered his estimate for operating profit next fiscal year starting April to 540 billion yen ($5.9 billion) from 760 billion yen, as higher profit margins in emerging markets soften the blow of recall expenses.

FULL story at link.

[comtec]

1. wah! fucking cost of cutting corners!

they can fucking suck it!

I like toyota, it's always been a reliable brand.

That they did this, KNOWING this might happen, to save a few fucking yen in the manufacture design is unforgivable however!

This stupid, fucking american way of doing business will destroy them, and good!

This should show the world that the american way of doing things, cutting corners till yuo have a circle is UNACCEPTABLE!

Let the death of Toyota serve as a warning!

Make no mistake, this is an AMERICAN business model that is killing Toyota, NOT A Japanese model!

I would point out that here in Europe, NO SUCH ISSUES HAVE ARISEN

fuck the american way of doing things, fuck the american corporate "profit at any costs" model, and death to all manufactures who continue this practice!!