The Toyota Recall Ripple Effect
The Toyota story isn't going away. It's been well documented that the company has suspended new car sales and recalled eight models due to sticking accelerators — the cause of 19 fatalities in the last decade. Last October, Toyota President Akio Toyoda expressed his dismay over the deaths of four people in California.
Recalls at that time involved concerns about gas pedals being jammed under the floor mats. Since then, Toyota has redesigned the gas pedals and revised the floor mats, along with other recommendations. However, these and other issues are creating a ripple effect and greatly impacting new and used car sales.
Dealers around the country are at a stand still, unsure of how Toyota will repair effected models, or when. The automaker started shipping new parts to its assembly plants yesterday. Dealers are not sure which way to turn. It’s unclear whether the new parts are from a new supplier or the existing parts maker.
Used car sales have ground to a halt. It’s difficult to single out specific models that need repair, they could be pulled aside, while waiting for further instructions.
“The tentacles of this thing go very, very deep,” he said. Whann can’t take chances; he estimates having several hundred cars that need repair.
Like many others dealers, Whann is waiting for directions from Toyota. Until the repairs take place, he won’t sell any of those cars. “I’m going to have a logistics issue with repairs,” he added.
The National Auto Auction Association has recommended to its members that they suspend sales of affected models also. One accident could result in a crippling lawsuit. CarMax, the nation’s premier used-car dealer has stopped selling the eight effected Toyotas all together.Continued on the next page