Toyota’s Latest Recall Drives Stock in Wrong Direction

Toyota’s Latest Recall Drives Stock in Wrong Direction (AP)

Shares of Toyota Motor Corp. (NYSE: TM) partly recovered today after opening down more than 2 percent due to a new recall of more than 6.7 million vehicles. This recall effort looks to be the first since President Akio Toyoda has started to toughen recall standards for the world’s largest automobile maker. And it comes on the heels of what were perceived to be sluggish efforts in 2009 and 2010 when the company recalled more than 10 million vehicles. In addition to more stringent recalls, Toyota has put a three-year freeze on new plant openings. With shares ending up down 1.26% on the day, investors may want to sell to monitor the stock before buying or selling shares.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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