Toyota (TM) May Resume Selling In Three Weeks
January 29, 2010 2:10 PM
Beleaguered Japanese automaker Toyota (NYSE: TM) announced that it may begin selling its recalled vehicles in the U.S. within three weeks.
Over the past month, the company has issued two separate recalls encompassing over 5 million of its most popular 2009 and 2010 models over defective accelerator pedals. Sales were postponed in order to limit exposure to the market of the recall, but the negative attention that Toyota has garnered has damaged the company's brand in the U.S.
Analysts estimate that the recall could eventually cost Toyota the equivalent of $550 million lost per month in operating profit. Congress has gotten into the act, asking the automaker about the recall, measures that are being taken, and the overall safety of the vehicles and any future models that are sold in the U.S.
Toyota's stock has dropped back to roughly where it was in November, when the first recall was issued. Earlier this month - before the second round of recalls - the stock had risen to a 52-week high. Now Toyota is trading at $77.20, down 0.6% on the day.
