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Toyota recall could have wide-reaching effect on economy

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Toyota is in deep trouble after the recall of millions of vehicles due to a gas pedal issue.

Despite what they say about them having this under control and it costing them $2 billion and forecasting a profit this year, this could have wide-reaching effects on an economy that is on shaky ground.

This isn't just going to affect the company's bottom line, but it will impact Toyota dealers.  Layoffs  may happen at Toyota as they take the hit from this.  And, the dealerships will have layoffs.  Think of all of the cars that dealers won't be able to sell for the foreseeable future.  Think of all of the suppliers who are being held up because Toyota has to fix a few million vehicles.

Not to mention, Toyota will take a huge PR hit over this and it will take them years to recover from it.

It will also put the industry on notice, an industry that mind you has been probably the biggest victim of the 2008 Economic Collapse.

The Toyota recall won't set off a cataclysmic chain of events, but it will be yet another setback for a sluggish economy.