Analysts mixed over Toyota's latest problem


Associated Press

Posted on February 17, 2010 at 12:05 PM

TOKYO (AP) — Automotive analysts are divided over the effects of another possible Toyota recall.

Toyota is considering a recall of its Corolla subcompact after complaints about power steering problems.

The managing director at Advanced Research Japan says another recall would deal a major blow to the world's largest automaker. He called it "another big, big negative."

But others say Toyota is sending a message it's serious about maintaining quality. An analyst at Mizuho Investors Securities in Tokyo says it shows that Toyota, in his words, "has learned its lesson," in that it's now ready to "announce every investigation far more quickly."

%@AP Links

<<CUT …146 (02/17/10)>> 00:06 "improve quality worldwide"

Yuri Kageyama (kah-jee-YAH'-mah)

AP Correspondent Yuri Kageyama reports company President Akio Toyoda says he won't attend the U.S. congressional hearing on the automaker's safety lapses, entrusting the job to U.S.-based executives.

<<CUT …148 (02/17/10)>> 00:06 "its sales figures"

Ferdinand Dudenhoffer (doo-den-HOFF'-ehr)

Auto analyst Ferdinand Dudenhoffer says fresh concerns over safety with the fast-selling Corolla subcompact is likely to hit the company.