Reports say that the company is now facing the biggest crisis that has ever happened in the auto industry. The company had recalled 2.3 million cars ranging across its 8 models after a defect appeared in the accelerator pedal in all its top vehicle

THE DEFECTIVE car models recall has probably hit Toyota hard enough to kill its image of being a ‘quality auto company’ forever. Reports say that the company is now facing the biggest crisis that has ever happened in the auto industry.

 
The company had recalled 2.3 million cars ranging across its 8 models after a defect appeared in the accelerator pedal in all its top vehicles. The world’s second largest auto company has now halted the sales and manufacturing of the defective models which surprisingly account for more than half of its US deliveries.
 

“Toyota’s reputation for long-term quality is finished,” Maryann Keller, senior adviser at Casesa Shapiro Group LLC in New York was quoted by the news agencies. She said “People aren’t going to buy Toyotas. It doesn’t matter which model. What’s happened is sufficient to keep people out of the stores.”
 
Toyota’s American depositary receipts also fell as the 2.3 million cars including the top-selling Camry and Corolla were recalled to fix the flaw.
 
Five North American plants of Toyota have been forced to set idle due to the controversy. The incident has spelled doom for Toyota all the more, since the company had suffered a similar recall in 2009 when 4.3 million-units faced problems in the floor mats.
 
Toyota’s ADRs fell 8.1 percent on the New York Stock Exchange on Wednesday recording the biggest decline since Nov 6, 2008.
 
Along with Camry and Corolla, Toyota’s recall covers the Avalon sedan and Matrix hatchback; RAV4, Highlander and Sequoia SUVs; and Tundra pickups. Also included is the Pontiac Vibe, a version of the Matrix built at a joint Toyota-GM plant until last year.
 
According to analysts Toyota would lose 20,000 vehicle sales a week till the time its keeps the manufacturing and sales on halt.
 
According to analysts, the defective models accounted for 70 percent of Toyota sales and about 56 percent of overall US auto sales. The defect found in the vehicles could “in rare instances, mechanically stick the accelerator in a depressed position or return slowly to the idle position.”
 
Surprisingly though, there have been no incidents, accidents or injuries reported resulting from the defect.