Friday 30th July 2010
Wednesday 3rd March 2010 11:48
Toyota hopes to clean up its image
Reuters
A total of 13 million vehicles across the world have been recalled after car manufactures admitted defects during production.
The latest manufacturer to announce a recall is General Motors (GM), which wants to check 1.3 million cars.
This latest action is likely to have a negative effect on the brand identity of the car manufacturers. The car industry is facing cut-backs as sales continue to fall. It is feared the timing of the recalls will reduce consumer confidence in the carmakers and hit sales.
Ford, which has yet not recalled any cars, announced a 43 per cent jump in sales during February 2010, overtaking rival GM for the first time in 12 months.
Ford's large increase in sales is thought to be due to consumers abandoning Toyota, which saw an 8.7 per cent drop in sales. Chrysler, Kia, Nissan and Hyundai also saw an increase in February sales.
GM saw a sales rise by 11.5 per cent during February. Mike DiGiovanni, GM executive director, said: "We got what we thought was our fair share of Toyota sales." However, now GM, the USA's largest manufacturer, could also see sales slide over the coming months.
Faulty
Toyota was the first to announce a car recall after admitting faulty brakes and accelerator problems in January 2010. This was quickly followed by Japan's second largest car manufacturer Honda, as it announced that it was uncertain that the airbag inflator may not inflate as designed.
Toyota's President Akio Toyoda apologized to customers for the faulty cars and the deaths that had been caused, during a US Congressional hearing last month. Toyota has also suspended sales of eight of its popular models.