Toyota's Recall to Go Global, Europe and China Affected

Just like a virus, the accelerator nightmare Japanese carmaker Toyota is engulfed in for months now has gone global, after rumors began surfacing models in Europe and, more recently, China, will be sent back into service for repairs. Although no official statement made by Toyota confirmed the rumors, unofficially the carmaker admitted an official recall will follow in Europe.

According to the carmaker's European spokesman Paul Nolasco, the recall is not yet official because Toyota doesn't know yet what and how many vehicles are involved, despite earlier reports indicating that in Europe Toyota will recall certain Aygo and Yaris models.

"Yes, Toyota will recall vehicles in Europe as well. We are not yet sure how many units are affected and what models we are talking about," the spokesman was quoted as saying by AFP. The same outcome is apparently about to take place in China as well.

In addition to the new global impact of the recall, Toyota announced an extra 1.1 million vehicles due to improper floor mats. The new recall affects 2008-2010 Highlander, 2009-2010 Corolla, 2009-2010 Venza, 2009-2010 Matrix and 2009-2010 Pontiac Vibe.

As a result of the repeated recalls and the unprecedented cease in production in North America, Toyota lost 4.3 percent on Wednesday and 3.91 percent on Thursday on the value of its shares. To make matter worse, monitoring agency Fitch announced it will reassess the A+ rating for Toyota.

"The repeated recalls and the stop in sales and production shed a negative light on the high-quality reputation Toyota has, right when the carmaker managed to emerge from the economic crisis that affected the industry," Fitch analyst Jeong Min Pak said.