Recalls hitting Toyota sales; reputation at stake

Toyota-logoThe suffering auto maker from Japan, Toyota Motors, which also has a good market share in United States, is facing tough times. The already slipping sales figure is expected to slide down even more after the recall decision by the company.

Toyota Motor has recalled 8.1 million cars after some technical faults appeared in its accelerator. This is definitely going to hurt the sales of the World's largest automaker. "The sales forecast is something that we are extremely worried about," said Shinichi Sasaki, Executive Vice President, Toyota Motor during a press conference.

This is the first time that an executive from the company has addressed the media. Meanwhile, there is no statement from Akio Toyoda, the grandson of the company's founder.

The January sales are going to be the worst hit. The company, which will be announcing its results on Thursday, is undergoing a tough reputation problem because of the technical glitch.

Analysts expect the loss due to this recall to be close to $900 million. This is over and above the already existing sales loss of $155 million every week.