Car Rental Agencies Pull Toyota Cars - Car Rental News
Car Rental Agencies Pull Toyota Cars
Car Rental News - 06/02/2010
Toyota scrambles to find solutions for pedal malfunction
The automobile industry has had a rough couple of years as the global economy took its toll on people's ability to buy a new car. Some countries even turned to government schemes like the cash for clunkers scheme in the United Kingdom, in an effort to get people to buy new cars and stimulate the industry. Toyota has recently taken an even bigger hit when news of a pedal malfunction forced them to do a massive recall which has led to a ton of bad press. Toyota has thus far been forced to recall more than seven million cars, which will lead to Toyota losing more than five hundred million dollars in profits, and could lead to car hire agencies looking for different brands to fill out their fleets.
While Japanese car manufacturers have been taking a hit, especially on the stock market where shares are down, automakers in South Korean are seemingly reaping the benefits of the problems that Toyota is having. While rental car companies are pulling Toyota cars from their fleets and looking for refunds, other car companies are trying to move in to take advantage of the all of the bad publicity to hopefully secure some rental car contracts as well as win over the general public. Since the announcement by Toyota shares of Hyundai, which is South Korea's largest car manufacturer, have gone up by nearly three percent, and Kia, which is a Hyundai subsidiary, went up by nearly six percent.
As Toyota continues to try and iron out the difficulties other car manufacturers are benefitting from Toyota's perceived failures.