February 10, 2010 10:49
Toyota's global recall of some 8 million vehicles could end up a burden rather than a benefit for the carmaker's rivals, a Honda executive warned.
Toyota's troubles "won't necessarily be a positive," Honda's chief financial officer Yoichi Hojo said in an interview with the Wall Street Journal on Monday. "If customers start to harbor doubts about [quality and safety], that would be a problem for the whole industry."
He said Honda will not specifically target Toyota customers with incentives, despite similar moves by U.S. automakers, saying the company will not seek to capitalize on the woes of its rival. GM and Ford have been offering incentives of up to US$1,000 to customers who trade in Toyotas, and some car dealers in the U.S. are said to be offering incentives to customers who bring in any kind of Japanese car.
Toyota's shares have fallen 10 percent since it first announced its global recall of 3.8 million vehicles last October. In contrast, Honda's shares have climbed 5.4 percent over the same period.
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