Japanese Automakers Recall for Same Problem - Analyst Blog
April 11 2013 - 1:50PM
Zacks
Japanese automakers, Toyota Motor Corp. (TM),
Honda Motor Co. (HMC), Nissan Motor
Co. (NSANY) and Mazda Motor Corp. have decided to recall
3.4 million vehicles globally for an identical problem. All these
automakers plan to recall vehicles for fixing defective airbag
system in their vehicles, supplied by Japanese auto parts maker
Takata Corp.
Toyota revealed that the airbags at the front seat in the vehicles
may not inflate when required while some other automaker has
noticed that the airbag inflator may burst. However, the automakers
have not yet received any reports of injuries or deaths due to the
problem.
Toyota will recall 1.73 million vehicles globally. Among them,
580,000 vehicles will be recalled in North America, 490,000
vehicles in Europe and 320,000 vehicles in Japan. The automaker
will replace the faulty airbags with the new ones and the fixing
will take about one to two and half hours for most of the
models.
Honda will recall 1.14 million vehicles worldwide while Nissan will
recall about 480,000 vehicles and Mazda about 45,500 vehicles
globally.
Automotive safety recalls were brought into focus by media after
Toyota’s announcement of the largest-ever global recall of 3.8
million vehicles in September 2009, triggered by a high-speed crash
that killed 4 members of a family. Later on, a string of recalls
has led Toyota to face numerous personal injury and wrongful death
lawsuits in federal courts.
A few months ago, the Transportation Department of U.S. slapped a
fine of $17.35 million on Toyota due to a late response regarding a
defect in its vehicles to safety regulators as well as late recall
of those vehicles. According to the department, it was the maximum
allowable fine under the law for not initiating a recall in a
timely manner. The latest fine adds to $48.4 million imposed by the
U.S. government on the company in 2010 due to late recall of
millions of defective vehicles.
Recently, General Motors Company (GM) also
recalled 144 units of its newly launched 2013 Buick Encores in
order to fix their steering wheel fastener that may not have been
properly installed. The Detroit-based automaker has informed that
the steering wheel in the vehicles could come loose or separate
from the steering column. The new compact crossover Encore is built
by GM Korea between Dec 9 and Dec 28. The same model is sold in
Europe as Opel Mokka.
GENERAL MOTORS (GM): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
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