Quote:
Originally Posted by Broken Arrow
Look, here's the thing: People are worried because it's a serious safety issue. And people have every right to be. However, that's a SAFETY issue, not a STOCK VALUATION issue. The company is still fundamentally sound. It still has a great balance sheet and a great product line. Toyota will fix this problem, and I'll be surprised if a year or two from now, we'll even remember talking about it.
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These are my thoughts exactly... I'm actually surprised by the traction that recent events are having against their stock. No matter what way you slice it, Toyota is still a VERY popular brand across the US and around the world. It has a fantastic history of safety, so the issues that are arising now appear (IMO) to be the exception rather than the rule (unlike various problems that
other car companies have demonstrated for years on end). If it were a trend, sure, I could believe recent events being yet another nail in the coffin, leading to significant drops in the stock. But I don't see that as the case here, so the drops are a bit surprising. Stockholders seem to be spooked for some reason -- perhaps did Toyota's history lull them into complacency?