Toyota Recalls 369K Vehicles Globally - Analyst Blog
September 06 2013 - 9:40AM
Zacks
The automobile market is witnessing a series of recalls and the
latest comes from Toyota Motors Corp. (TM). The
automaker will be recalling 369,000 vehicles worldwide, including
about 235,000 in the U.S., roughly 74,000 in Japan and 37,500 in
Europe.
Toyota will recall 200,000 Highlander Hybrid models manufactured
from 2006 to 2010 and Lexus RX 400h vehicles developed during 2006
to 2008 to fix a hybrid-system problem. The SUV transistors get
overheated in the hybrid system, which results in sudden halt of
the vehicle.
Toyota is also recalling another 169,000 vehicles including Lexus
IS 350, IS 350C and GS 350 made between 2006 and 2011. Toyota is
recalling these vehicles to repair an engine bolt defect. These
vehicles also face the problem of halting suddenly as bolts get
loose in the variable valve timing control device.
Automotive safety recalls were brought into focus by media after
Toyota’s announcement of the largest global recall of 3.8 million
vehicles in Sep 2009, triggered by a high-speed crash that claimed
4 lives. Later on, Toyota had to face numerous personal injury and
wrongful death lawsuits in federal courts, hampering its image.
Product recalls can seriously dent a brand’s image. Vehicle
recalls, amid the competitive scenario, will adversely affect the
company’s brand value.
In Aug 2013, Dongfeng Honda Automobile Co., the Chinese arm of
Honda Motor Co., Ltd. (HMC), announced that it is
recalling all Siwei CR-V vehicles manufactured from Mar 2, 2010, to
Aug 30, 2012. The recall is being made to fix a defective front
shock absorber piston rod. Honda is recalling almost 408,000
SUVs.
Recently, Ford Motor Co. (F) also announced that
it is recalling Ford Crown Victoria, Mercury Grand Marquis and
Lincoln Town Car sedans manufactured from 2005 to 2011. The
automaker is recalling 370,000 vehicles in the U.S and Canada to
replace a steering shaft.
General Motors Company (GM) also joined the list
of recalling vehicles. Recently, it recalled the diesel version of
Chevrolet Sail. The automaker is recalling 4,000 vehicles in India
to fix a faulty engine part.
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
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