Toyota to Recall Nearly 3 Million Cars

by Christopher Freeburn | November 14, 2012 9:35 am

[1]Toyota (NYSE:TM[2]) is recalling 2.77 million vehicles around the world over defective steering systems and water pumps.

The recall affects 1.52 million vehicles sold in Japan and 1.25 million vehicles in international markets, covering 14 models, Bloomberg noted.

Toyota has been struggling to repair its reputation for reliability after a series of major vehicle recalls. In October, the company recalled 7.43 million vehicles due to a mechanical problem with power window switches[3] that could lead to smoke or fires.

Steering systems in the newly recalled vehicles could experience rattling and lose responsiveness, while the water pumps in hybrid vehicles could fail.

Included in the recall are 670,000 Prius hybrids sold in the U.S. Toyota’s popular Corolla model is also affected. The company indicated that it had not received any reports of accidents or injuries relating to the steering or water pump problems.

An analyst at Japan’s Takagi Securities noted that Toyota’s latest recall was smaller than the prior one and said the repairs required weren’t extensive and would have little effect on earnings. Toyota didn’t disclose the anticipated cost of the recall.

Other recent Toyota recalls:

• November — 11,200 Scion iQ microcars over defective airbag and seat belt sensor cables[4].
• October — 7.43 million vehicles due to faulty power window switches.
• August —  760,000 Toyota RAV4s and 18,000 Lexus HS 250hs for safety reasons[5].
• March — 700,00 Camry, Tacoma and Venza models over safety issues[6].

Shares of Toyota fell more than 1% in Wednesday morning trading in New York.

Source URL: https://investorplace.com/2012/11/toyota-to-recall-nearly-3-million-cars/

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