Toyota Prius Recall 2018: 2.4 Million Hybrids Could Stall

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Toyota Prius recall 2018 (NYSE:TM) was issued as millions of the company’s hybrid flagship brand could have a design flaw that may cause them to stall.

Toyota Prius Recall 2018The Japanese automotive giant said that some of its Prius or Auris cars that were manufactured between 2008 and 2014 could have a problem that causes them to stall when entering a fail-safe driving mode. The Toyota Prius recall 2018 affects 1.25 million cars in Japan, 830,000 in North America and 290,000 in Europe as the company will fix this issue for vehicle owners, free of charge.

The fail-safe driving mode, which the company also calls “limp mode,” occurs when the vehicle’s computer identifies a critical issue with the vehicle. This means that it receives signal values that are outside of the car’s normal range from one or more of its built-in sensors.

When the car is in this mode, its speed is limited to being between 30-45 mph in order to prevent any additional damage to the engine, while still letting the driver leave. Toyota said that in certain rare situations, the vehicles included in the recall may lose power completely when entering the fail-safe driving mode.

This could lead to a collision when driving at high speeds, although the carmaker said that no accidents caused by this flaw have been reported as of yet. Toyota is contacting all known owners of these vehicles.

TM stock was down about 0.5% on Friday following the news.


Article printed from InvestorPlace Media, https://investorplace.com/2018/10/toyota-prius-recall-2018-tm/.

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