Toyota Motor Corporation was hit hard by a recall recently. As a result, Toyota reported a 16% decline in U.S. sales this past January. Sales fell short of 100,000 units for the first time in the last several years. However Ford Motor Company (NYSE:F) and General Motors reported an increase in sales. Ford had a 25% increase for January when compared to a year ago and General Motors reported a 14% increase.
The Toyota recall was due to faulty gas pedal systems. January is generally a slow month for automotive sales, but all the car manufacturing companies expected an increase due to last year’s weak economy. Toyota’s recall affects about 2.3 million vehicles in the U.S. Ford and GM have also offered incentives to Toyota vehicle owners for trade-ins.