Toyota is caught in a ballooning recall debacle affecting as many as eight million cars.

Japanese Economy Minister Masayuki Naoshima was quick to blame the global economic system.

[Masayuki Naoshima, Japanese Economy Minister]:
"I think it's a serious issue because of the big scale. (We're witnessing) one of the risks of the global system… Ultimately I'd like them to cope with the situation resolutely, especially in regaining the confidence of the consumers."

Many analysts blame Toyota's pursuit of cheaper suppliers.

[Tatsuya Mizuno, Founder of Mizuno Credit Advisory]:
"The reason why this large-scale recall is happening over and over again is because of the company's emphasis on cost-cutting measures. This is not just Toyota's internal problem but cost pressures towards parts-suppliers as well."

In addition to the recall, Toyota has shut down sales of its best-selling vehicles in North America under pressure from the Obama administration to address the product safety issue.

Toyota said on Wednesday that it would offer to replace floor mats or accelerator pedals on another 1.1 million vehicles across five models in the United States.

The models affected include the 2009-2010 RAV4, Corolla, Matrix, the 2005-2010 Avalon, some Camrys made between 2007-2010, the 2010 Highlander, Tundras made between 2007 and 2010 and the 2008-2010 Sequoia.

A Toyota spokesman said there was in fact no known glitch in those models, and that the voluntary action was solely meant to appease worried drivers.

Analysts say Toyota's woes may also affect the overall image of Japanese brand names, many of which have already suffered setbacks in the recent economic crisis.

[Tatsuya Mizuno, Founder, Mizuno Credit Advisory]:
"I feel that not only the world's opinion of Toyota but also of Japan in general may fall another step down."

That sentiment was repeated on the streets of Tokyo.

[Takeo Namekata, Businessman]:
"If Toyota hits hard times, there's a high probability that Japan will also. In particular, I think trade will suffer."

Toyota's stock has tumbled nearly 14 percent in the past week.