We reported to you yesterday that Toyota had started its worldwide recall of the Crown and Lexus vehicles. 92,000 units is just the start, but it is expected that there will be 270,000 worldwide recalls in total. This latest recall is having adverse affect on Toyota’s credit rating.
Toyota’s credit rating used to stand at Aa1, but according to Surojit Chatterjee from IBT, Moody’s Investors Service has reduced this to Aa2. Other credit rating companies will now start to look at Toyota to see if they need to reduce their rating as well.
This has been building for some time now and was kicked-off with the recall of 8 million models early this year. Toyota knew about the issue with the affected model but was slow to start the recall process– earning them a $16.4 million fine by the US Transportation Department in the process.
We have to wonder if Toyota can keep up its once good image, in the past they were renowned for bulletproof reliability – what a difference a year makes.
Has your confidence in Toyota changed?