In light of the recall of virtually millions of vehicles, Toyota executives find themselves in a nightmare, and the ramifications are not yet clear. Historically, recalls of this magnitude will continue to be far-reaching and lengthy over time. In the days of newly emerging details, a deluge of information regarding either repairing gas pedal systems or replacing them entirely to get customers back on the road is the primary focus. We have now shifted from what was thought to be a relatively easy fix of a floor mat problem to also include a gas pedal problem.

Toyota stated that it stopped production and sales of some of its best model cars to concentrate on the repairs of the recalled vehicles. The many angry customers out there want some answers. Reports indicated that communication is difficult, and systems to handle such a mass of communication are overloaded. From a broader perspective, sources say the company's market has dropped 18 percent, or $28.2 billion. There are approximately 4.2 million vehicles affected by the floor-mat recalls, and approximately 2.3 million affected by the gas-pedal recall. Some models will be subject to both.

Insurance Implications