Product recalls are the precautionary steps to avoid any
glitch in a vehicle that may lead to accidents. However, the
recalls dent a brand's image and the 0.4% fall in
Toyota Motor Corp.
) shares on Oct 18 was a reflection of that. The automaker
announced on Oct 17 that it is recalling 885,000 Camry, Avalon,
and Venza vehicles worldwide to fix a problem in the air
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Toyota has made several recalls of late and the drop in share
price might be a reflection of shareholders' fading confidence
owing to that. Product recalls, amid the competitive scenario,
not only affect the brand but causes certain financial damage as
Toyota is recalling 803,000 Camry of model years 2012-2013 in the
U.S. Additionally, 44,000 vehicles from Canada, 10,600 from
Mexico, and 9,100 from Saudi Arabia are being recalled. The
remaining vehicles will be recalled from 15 other countries.
Toyota said that the problem in the air-conditioning condenser
may cause leakage of water into the airbag control modules. This
can lead to short circuits or the airbag might inflate when not
required and the power steering may also default. So far 2 minor
injuries have been reported but there have been no casualties.
Toyota's Largest Recall
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
Toyota's Series of Recalls of Late
In Jul 2013, Toyota announced that it would recall 185,000 units
of some subcompact car models globally due to a problem with
their electric power steering system. The glitch was making the
steering heavier. The recalled vehicles include Yaris (know as
Vitz in Japan) and Verso-S (aka Lactis in Japan) subcompact
models. The recalled Yaris vehicles were manufactured between Nov
2010 to Mar 2012 while Vero-S vehicles were made between Aug 2010
and Aug 2011.
In Aug 2013, Toyota recalled around 342,000 Tacoma midsize pickup
trucks to fix faulty front seat belts. The recall involved car
models from 2004-2011.
In early Sep 2013, one year after Toyota recalled 780K vehicles
to fix a problem in the rear tie rod, the company recalled the
vehicles again after reports that the problem remained, reported
The New York Times. The company had recalled 18K 2010 Lexus HS
250h autos and 760K Toyota RAV4 SUV of model years 2006 to 2011
in Aug 2012, following several complaints.
Again in Sep, the automaker recalled 369,000 vehicles worldwide,
including about 235,000 in the U.S., roughly 74,000 in Japan and
37,500 in Europe. This included 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.
Toyota also recalled another 169,000 vehicles including Lexus IS
350, IS 350C and GS 350 made between 2006 and 2011. Toyota
recalled these vehicles to repair an engine bolt defect.
Later in Sep 2013, Toyota recalled 615,000 Sienna minivans in the
U.S. The automaker recalled the vehicles of model years 2004-2005
and 2007-2009 to fix a problem in the shift lever assembly.
Recalls by other Automakers
Other than Toyota, many other players in the automobile market
are witnessing a series of recalls. In Aug 2013, Dongfeng Honda
Automobile Co., the Chinese arm of
Honda Motor Co., Ltd.
), announced that it is recalling all Siwei CR-V vehicles
manufactured from Mar 2, 2010, to Aug 30, 2012 to fix a defective
front shock absorber piston rod. Honda recalled almost 408,000
Ford Motor Co.
General Motors Company
) also announced multiple vehicle recalls to fix various issues.