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Toyota’s recall costs could top USD5 billion

The financial impact on Toyota Motor Corp. from its global recall could total more than USD5 billion over the next year, due to increased incentive campaigns, litigation costs and marketing efforts by the embattled carmaker, analysts say.

The critical question facing the world’s leading carmaker is how long the fallout from the recall will affect sales in North America, its largest market. After a slow start, Toyota is biting back at its critics and has launched an aggressive sales campaign in the US, featuring a 0 percent interest five-year loan offer, competitive lease prices and free maintenance across 80 percent of its vehicle line-up.

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(Source: The Wall Street Journal Online)