Toyota is stricken by massive recalls in the U.S. and stalled sales at home, but it is not without a lifeline - big, fast-growing markets like China and Southeast Asia where drivers seem unfazed by what is troubling consumers in the West.
The world's No. 1 automaker could certainly do with a cushion if it's going to keep its pole position in the auto world. Recalls totalling 8.5 million vehicles globally for faulty brakes, floor mats that can entangle the gas pedal and sticking accelerators have battered its once stellar reputation.
Toyota's share of the United States market is already nose-diving and a return to profit after big losses from the global recession is imperilled by an estimated US$2 billion in recall costs and lost sales.
The backlash in the U.S., its biggest market, has been swift and merciless. Drivers feel betrayed after being lured by Toyota's promises of unmatchable quality and safety.
But in developing countries, where the scale of recalls was small, it doesn't face such high expectations. Auto safety problems tend to draw less attention in nations where consumer protection agencies are a relatively recent innovation and compete with more pressing concerns such as ensuring basics like clean water and uncontaminated food.
Chinese consumers are all too familiar with quality problems, thanks to a slew of scandals involving everything from tainted milk and medicine to crumbling buildings and roads. The government's difficulties in preventing such troubles has left many somewhat philosophical about the challenges involved.
"Chinese cars have a lot more problems than Japanese cars, so we know that no product is perfect," said 42-year-old entrepreneur Li Lianjun as he joined his family for a Lunar New Year's dinner.
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