Hurt by recalls, Toyota may lose U.S. sales

Toyota's still-expanding recalls over faulty gas pedals and an unprecedented decision to stop selling and building some of its top-selling models in the U.S. are costing the carmaker dearly: industry analysts are already forecasting its market share will sink to its lowest since 2006.

Japanese Trade Minister Masayuki Naoshima sounded a note of alarm Friday about the tarnished reputation of Toyota Motor Corp., the nation's iconic automaker.

"The scale of the recalls is huge. The situation is serious. It points to the possible dangers a global economy can bring," Naoshima told reporters. "I would like Toyota to respond properly to secure consumer confidence."

Toyota's U.S. recall woes have been making daily headlines around the world, setting off worries in Japan the automaker's once sterling image for top-rate manufacturing has failed to hold up to the pressures of rapid globalization.

In the U.S., House lawmakers have scheduled a Feb. 25 hearing to review the complaints of sudden unintended acceleration in Toyota vehicles, underlining the growing concerns there.

In its monthly report, U.S. auto research Web site Edmunds.com said Toyota's U.S. market share was likely to drop to 14.7 percent in January, its lowest since March 2006. Rival Ford Motor Co.'s would gain to 18 percent, its best performance since May 2006.

Toyota is expected to sell 103,000 vehicles in January, down 11.9 percent from January a year earlier and down 45.0 percent from December 2009, according to Edmunds.com.