Toyota's Recall Budgetary Nightmare Case Study by Peter Pen

Toyota's Recall Budgetary Nightmare
A look at the financial issues concerning the Toyota company's need to recall cars due a technical problem.
# 98288 | 948 words | 3 sources | APA | 2007
Published on Sep 17, 2007 in Business (Companies) , Business (Finance, Investment and Banking)

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This paper addresses how financial managers manage an organization's need for cash investments. It explores the sources, advantages, disadvantages, and structuring of these investments. In particular, it identifies a need for Toyota to finance a massive recall for multiple models due to premature steering problems. Toyota needs approximately $925 million in order to take care of the full cost of this recall.

From the Paper:

"In the wake of 2005's recalls, which outnumbered Toyota's sales in the U.S. by about 200,000 vehicles, the company installed some stricter quality mandates internally. Another company would have moved on, but Toyota reviewed its service plans, made a public apology and hired 8,000 new quality engineers. Still others believe that with a quality gap that is closing rapidly between the "Big Three" made products and Asian automakers, Toyota somehow manages to keep its image as the essence of quality."

Sample of Sources Used:

  •, downloaded 16 Jun 2007
  • Chapter on the Capital Structure Decision, F:\Modules\Module05\chapter6.doc, downloaded 16 Jun 2007
  • How do CFOs Make Capital Structure and Budgeting Decisions,, downloaded 16 Jun 2007

Cite this Case Study:

APA Format

Toyota's Recall Budgetary Nightmare (2007, September 17) Retrieved August 04, 2020, from

MLA Format

"Toyota's Recall Budgetary Nightmare" 17 September 2007. Web. 04 August. 2020. <>