Toyota has estimated the cost of their recalls to be in excess of $2 billion, but many are predicting that lawsuits alone could top that number, as 30 U.S. suits have already been filed. With lawyers chomping at the bit for a piece of Toyota, credit rating agency Moody”s warned that a downgrade to Toyota”s credit rating is a strong possibility due to litigation risks that the company faces.
New reports regarding steering problems in the Corolla could also spell more trouble.
It has been estimated so far that there have been a total 19 fatalities involving the recalled vehicles, and Kansas City Attorney Gary Robb anticipates that number to increase significantly as people look more deeply into accidents in which a cause has yet to be determined.
Kelley Blue Book has also lowered its book values on the recalled models anywhere between 2.5% and 3.5%
– By: Stephen Calogera