Despite the $2 billion Toyota Motor says the unprecedented recall will costs, the company still reported significant earnings improvements in the quarter ending Dec. 31. In addition, the forecast for the fiscal year ending in March was much better than anticipated.
Still, Toyota official estimated that over half of the $2 billion impact would results from the expense of fixing 8.1 million affected vehicles worldwide. The remainder would be from lower sales and the reduced value of leased vehicles held by Toyota’s financial arm.
The company also said it assumes it will lose 100,000 new vehicles sales due to the recalls, 80,000 in North America and the rest in Europe.
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