Toyota recall may affect auto industry

Auto experts say Toyota's massive recall is another blow to its sales which have already declined in many regions. They add it may change the landscape of the global auto industry.

Some experts have pointed out that if Toyota's recall intensifies, consumers' confidence will take a hit. Other auto markers including General Motors, Ford and Chrysler have put forward enticing offers for car purchases in order to win over Toyota's customers. In 2008, Toyota exceeded GM to become number one in sales. But in 2009, its sales fell by 13 percent globally, while in the US, its major market, sales fell by 20 percent.

Auto analyst Zhong Shi said, "The global financial crisis froze most of Toyota's capital planned for expansion, and forced it to slash investments and costs. Most of its models now have to use same parts. That is risky. If one type of part has problems, millions of vehicles will be affected."

Experts say that the 2009 auto market competition focused on Volkswagen and Toyota. VW's success in Europe and growth in China have put pressure on Toyota. In addition, VW acquired Porsche and purchased 20 percent of Suzuki. The combined sales of VW and Suzuki have exceeded 8 million vehicles. Toyota's recall has given its rivals a boost.

Senior auto analyst Jia Xinguang said, "In the 1990's, when the oil crisis hit, Toyota quickly took over the North American market with its fuel-saving models and high quality. But after this large scale recall, it is being beaten by its rivals."

As Toyota sales spin into reverse, companies like Ford have emerged as the big winners. The company posted a 24 percent jump in sales for January.