Smart Stocks Investing

It’s hard to think of another company that nose-dived as fast as Toyota (TM) has. A few months ago, millions of drivers considered Toyota the gold standard for automobiles, with quality and reliability you could practically take for granted. Then came mysterious gas-pedal problems, claims of deadly "sudden acceleration" incidents, the global recall of more than 8 million vehicles, and vacillating assurances from shellshocked executives. The recalls could end up costing $2 billion or more. Toyota’s sales have plunged, and its U.S. market share has fallen from 17 percent to 13 percent in just two months. The collapse rivals Enron or Lehman Brothers.

What’s different about Toyota, though, is that it will recover. The automaker has deep pockets and tons of talent. Diffident CEO Akio Toyoda may not be the right man to lead Toyota through the worst crisis in its history, but sooner or later the company will regain control and get back on the pavement. It may even end up a better company than before. Meanwhile, Toyota automobiles could be a smart buy, with dealers forced to offer discounts and other incentives to move merchandise sullied by the scandal. Shoppers should research prices at sites like Edmunds.com or kbb.com to make sure that the price paid today is commensurate with the likely resale value down the road. If the price seems right, there are several other good reasons to buy a Toyota: