Toyota suspends some U.S. sales

Toyota logoIn an unprecedented industry move, Toyota, the world’s most successful automaker, temporarily suspended U.S. sales of eight models until it figures out a brake-pedal problem that sparked a recall.  Former Ford Motors executive Louis Lataif, long-time dean of the School of Management, says it may help domestic manufacturers, but it premature to read too much into the situation.

“It may be that suspending sales while the technical correction is made to vehicles in dealer inventory — and a week or so of production stoppage — will represent a more modest financial and reputational blow than other alternatives which may have given the problem a longer life.”

Contact Louis Lataif, 617-353-2668, lelataif@bu.edu

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