Toyota's global recall of millions of cars due to sticking accelerators won't deal a death blow to the company, which will recover, says billionaire Wilbur Ross.
Toyota does not make the faulty accelerators or the slipping floor mats that will put a dent in sales, Ross tells CNBC.
The company's suppliers do.
Nevertheless, customers don't care about Toyota's suppliers because all they know is the name on the care.
Further recalls are possible, which could be a problem for Toyota, the world's largest automaker, but not a permanent one.
“Oh, Toyota will recover. This is not a death blow.”
While Toyota focuses inward to correct its problems, investors should see how U.S. automakers scramble to grab market share lost by the Japanese carmaker, says Ross.
Toyota executives have admitted that the damage from the recall may be bigger than once thought due to the size of the measure.
“This is unprecedented in having caused this huge problem for customers,” says Shinichi Sasaki, who oversees quality control at Toyota, according to the Associated Press.
Sasaki says it's too soon to put a number on the cost of the recall.
Tatsuo Yoshida, an auto analyst at UBS in Tokyo, says the recalls are likely to cost about $900 million, adding that lost sales are now costing Toyota another $155 million a week.
© 2017 Newsmax Finance. All rights reserved.