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Lexus Recall 2010: Toyota’s new list and credit rating

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?

Written by Peter Chubb

Peter has been writing on Product-Reviews since 2007 and in that time much has changed for him, like his hair having more grey than brown now. He loves gadgets and cars, and gets excited when big events come up, such as CES and the big auto shows.

Contact Peter Chubb: peter@product-reviews.net

He started out working in a factory and dreamed of the day when he could become his own boss; That happened back in 2002 and he has never looked back since. Things have changed so much on the Internet in that time, but he has adapted well.

Contact Peter Chubb: peter@product-reviews.net

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