In light of the recall of virtually millions of vehicles, Toyota executives find themselves in a nightmare, and the ramifications are not yet clear. Historically, recalls of this magnitude will continue to be far-reaching and lengthy over time. In the days of newly emerging details, a deluge of information regarding either repairing gas pedal systems or replacing them entirely to get customers back on the road is the primary focus. We have now shifted from what was thought to be a relatively easy fix of a floor mat problem to also include a gas pedal problem.

Toyota has stated that it would stop production and sales of some of its best model cars and concentrate on repairs of the recalled vehicles. The many angry customers out there need some answers. From what we are told, communication is difficult, and systems to handle such a mass of communication are overloaded. On a more broad perspective, sources report that the company's market has dropped 18 percent, or $28.2 billion. There are approximately 4.2 million vehicles affected by the floor mat recalls, and approximately 2.3 million affected by the gas pedal recall. Some models will be subject to both.

Let us turn our attention to different aspects of the problem: issues associated with claim-handling, subrogation, and litigation. It has been established that there is a problem with both the floor mats and the gas pedal. Therefore we have a new perspective toward our investigations of crashes involving Toyotas that are of the make and model included in the recall and details of the accident that could make them suspect for further investigation. What about the vehicles that have previously been involved in accidents? Do we reopen those files and pursue subrogation? Were extensive damages paid by the insurer — who covered the party deemed "at fault" at the time of the original investigation — but now that may not be the case? As you can see, this will impact several areas of the casualty industry. To break it down; damages, subrogation, and settlements will all be affected, not only for current, but also past and future accidents involving Toyotas.