Toyota Motor Corp shares jumped more than 5 percent on Tuesday after it detailed plans to fix nearly 4.5 million vehicles equipped with faulty accelerators in North America and Europe.
Toyota, fighting to preserve its reputation for quality, said it would restart production of eight models on February 8 after a planned one-week shutdown at six plants in the United States and Canada.
The costs for the recall and the shutdown now look to come to roughly 100 billion yen to 200 billion yen ($1.1 billion to $2.2 billion), two analysts said.
It's a positive that we now can grasp what the direct costs might be, but Toyota has yet to address uncertainties about indirect costs, such as litigation costs and costs of incentives to win back customers, said JP Morgan analyst Kohei Takahashi.
The size of these indirect costs is of far greater importance for Toyota's future, he said.
The top automaker said on Tuesday that Executive Vice President Shinichi Sasaki, in charge of quality, will hold a news conference in Nagoya at 1:30 p.m. (0430 GMT) related to the recalls. Toyota President Akio Toyoda will not attend, it said.
The jump in its shares comes after about an 18 percent tumble over the last seven business days. A weaker yen also boosted shares in the world's largest automaker, some investors said.
Toyota faces a growing number of lawsuits claiming it and its U.S. supplier CTS Corp endangered drivers by not acting sooner to fix a problem with faulty accelerator pedals.
Rivals such as General Motors Co, Ford Motor Co and Hyundai Motor Co have been offering discounts targeting Toyota customers.
On Monday, Toyota began shipping parts to fix faulty accelerators in vehicles in North America and Europe, and said it would restart North American production on February 8 after an unprecedented shutdown prompted by the problem.
The moves by Toyota marked the most detail the automaker has provided on its plans to address a safety issue that threatens its finances and reputation, and will have dented its U.S. sales for January.
Lawsuits announced on Monday in the U.S. claimed Toyota had ignored signs of trouble with some of its top-selling models. The suits are part of what is expected to be a wave of litigation against the automaker for claims ranging from losses on car resale values to injury and death.
Analysts and dealers said it would take months for the automaker to fix all of the vehicles at risk of having an accelerator pedal stick in the open position.
(Reporting by Elaine Lies, Mayumi Negishi; Editing by Hugh Lawson)