Toyota shares plummet as owners told to park their cars by U.S. Transportation Secretary LaHood
Image by Getty Images via Daylife
Just when Toyota thought its recall woes couldn’t get any worse, U.S. Transportation Secretary Ray LaHood has advised all Toyota owners affected by the unintended acceleration recall to stop driving their cars.
The result – other than emptier car pool lanes and a lot of nervous Toyota owners – is a battered reputation for quality, and a stock price that is now falling off a cliff.
NEW YORK— Toyota Motor Corp. shares sank rapidly after U.S. Transportation Secretary Ray LaHood advised in congressional testimony that people stop driving any cars involved in the Toyota recall.
Testifying before the House appropriations committee, Mr. LaHood was asked what advice he would give to owners of Toyotas subject to the recall. “My advice is, if anybody owns one of these vehicles, stop driving it, take it to the Toyota dealer because they believe they have the fix for it,” Mr. LaHood said.
Toyota shares, which were already lower on the day, sped up their declines, falling 7.8% to $72.06 in recent trading after earlier dropping as low as $71.90. The stock had been hovering closer to $75 after the opening bell but promptly started falling at about 10:30 a.m. EST. Since the recalls were announced, Toyota shares have declined 20%, wiping out more than $30 billion in market capitalization.
(via The Wall Street Journal)
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[...] to revise and extend his remarks after a foolish statement at a congressional hearing. But the unnecessary damage to Toyota’s reputation already had been done — and I say that as a customer who isn’t too happy with Toyota [...]