Toyota is dealing with the second largest recall in auto history – 7.4 million now compared to eight million for Ford in 1996. There are a few indications Toyota could come out on solid footing in brand image and resale value following this recall:
- It’s new vehicles sales are very strong this year. Toyota took its crown back as the world’s best-selling automaker in the first half of this year. Sales in China have been hurt for Toyota and other Japanese makers due to protests from an age-old China-Japan territorial dispute, but Toyota hasn’t been singled out.
- Resale values have come back for Toyota with both Toyota and Lexus winning the brand resale values at the 2012 Kelley Blue Book awards. It also helped that the brands took five awards in the 2012 J.D. Power Initial Quality Study, more than any other automaker.
- Large recalls make the most sense today. Automakers save money by using common parts whenever possible even though the recall may sound overwhelming at first, Edmunds.com’s John O’Dell said.
- Proactive recalls are better than reactive ones. Automakers have learned from past mistakes, particularly Toyota, and the stigma of recalls seems to be getting cast aside, said Karl Brauer, founder of TotalCarScore.com.