The CFO of Honda (HMC) remarked recently that the Toyota recalls could make people reluctant to buy new cars. The Hyundai news is likely to support the concern that US auto shoppers may decide in ever-growing numbers that owning their old cars which they know work is better than purchasing a new car which may not. The new car may even have dangerous faults.
Recalls are a normal part of the car industry’s activity to keep customers safe. Vehicles with thousands of parts are likely to have quality issues from time-to-time. But, the Toyota recalls and later investigations have made each new recall by any auto firm more alarming whether the safety problem involved is serious or not.
American car buyers may go on strike and keep the vehicles they already own for another year or two. Better the known devil….
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks