Toyota Recalls Could Send Automaker to #3 Spot in 2010 (TM, F)

Toyota Motor Corporation (NYSE: TM) could slip to the number 3 spot in U.S. auto sales this year, hit hard by recalls and a quiet global recovery.

According to a CNBC.com report, Toyota has sold 1.018 million cars so far this year. That lags behind Ford (NYSE: F) at 1.155 million and Chevy at 1.052 million.

Phil LaBeau of CNBC.com notes that "Any buyers who were thinking of jumping over to Toyota and even a slice of current Toyota owners were spooked out of buying the Japanese brand. Yes, the company limited the damage by throwing out big incentives earlier this year. Still, the damage was done. Now the question is what are the lingering effects the recalls are having on Toyota sales months later?"

Clearly, Toyota has suffered an enormous blow to its automobile empire. Ford and GM stand to benefit from Toyota's problems, but could also ride the wave of U.S. consumers who want to buy American.

Shares of Toyota are down slightly this afternoon, to $69.64. Ford is down 1.4%, to $11.90.