1. Toyota has had a number of recall issues in the past couple of years, and it just announced another one for a faulty power window switch that could cause a fire. This latest safety recall involves more than 7.4 million cars, which is one of the largest recalls in automotive history. This is another blow to Toyota's image and it could have an impact on sales and lead to stronger sales for Ford and General Motors.
2. A dispute over an island in the East China Sea has caused an uproar between China and Japan. This has been playing out in the media, and it has caused Chinese consumers and businesses to boycott Japanese goods. Some Japanese companies have even seen vandalism and property damage occur. The impact has been particularly negative for companies like Toyota, as auto sales have plunged in China. A recent article sums up how severe the drop is, and it states:
A report by J.P. Morgan, released Tuesday, projected Japanese auto exports to China will crash 70 per cent during the October-December period.