Massive Toyota Recall: 6.3M Vehicles Affected

Could cost Toyota hundreds of millions for recall efforts

   

Massive Toyota Recall: 6.3M Vehicles Affected

A massive Toyota recall (TM) is impacting some 6.3 million vehicles worldwide — one of the largest vehicle recalls to date.

toyota Massive Toyota Recall: 6.3M Vehicles AffectedThe Toyota recall is being issued to fix a variety of safety issues in some of its top models, though no injuries or deaths have been reported (via Bloomberg).

The recall, Toyota’s second-biggest since late 2012, is a setback for President Akio Toyoda, who has spent years trying to restore the company’s reputation for quality after the 2009-2010 recall crisis it faced over unintended acceleration. Scrutiny of safety practices in the auto industry is rising as U.S. regulators investigate General Motors Co. (GM) for its handling of deadly ignition-switch flaws that the company knew of as far back as 2001.

The world’s largest carmaker said the recall will be on certain Model Year 2009-2010 Corolla, 2009-2010 Matrix, 2008-2010 Highlander, 2009-2010 Tacoma, 2006-2008 RAV4 and 2006-2010 Yaris vehicles, among others.

Early estimates on the amount the recall will cost Toyota are upward of $588 million.

“We sincerely apologize to our customers for the inconvenience and concern brought by this recall announcement,” the company said in a statement. “Toyota has rededicated itself to strengthening its commitment to safety and quality. In part, that means refocusing on putting customers and people first, by listening better and taking appropriate action.”

In the past, recalls have had little impact on TM’s earnings — though TM stock is down 2.3% pre-market.

At the same time, Toyota forecasted profit for the year ending March 31 “will surge to a record 1.9 trillion yen,” according to Bloomberg.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/04/toyota-recall-vehicles-safety-issues/.

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