HomeTransportationToyota to recall 7,4 million vehicles

Toyota to recall 7,4 million vehicles

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TOKYO — Toyota Motor Corp said it would recall more than 7,4 million vehicles worldwide as a faulty power window switch was a potential fire hazard, the latest in a series of setbacks that have dented the reputation of Japan’s biggest automaker.

The voluntary move is the biggest single recall since Ford pulled eight million vehicles off the road in 1996 to replace defective ignition switches that could have caused engine fires.

Toyota has battled its way back from multiple difficulties since 2008, including a series of recalls involving more than 10 million of its vehicles in 2009-2011, and crippled supply chains from last year’s earthquake and tsunami in Japan and floods in Thailand. It posted its biggest quarterly operating profit in four years in April-June.

The firm regained its crown as the world’s best-selling automaker in the first half year and expects to sell 9,76 million cars and light trucks globally this year, including the Daihatsu and Hino brands.

More recently, though, Toyota — and other Japanese brands — have seen sales plummet in China, the world’s biggest autos market, as a result of protests in a simmering Sino-Japanese territorial dispute.

Toyota said on Tuesday that its China sales fell 48,9% year-on-year in September. Sales in China account for about 12% of its total.

The recall, intended to fix a malfunctioning power window switch on the driver’s side, primarily affects cars in the United States, China and Europe.

Toyota’s main rivals in the US include Ford and General Motors Co, while in China they include Volkswagen AG, Hyundai Motor Co and Nissan Motor Co Ltd and in Europe, Hyundai and Nissan.

The recall will include some Yaris and Corolla models, with repairs taking about 40 minutes, the company said.

“The process to repair (the power window switch) is not an extensive one,” spokeswoman Monika Saito said, adding that it would involve putting heat-resistant grease on the switches, or exchanging them.

Toyota declined to say how much the recall would cost, or what impact it may have on future earnings.

Koichi Sugimoto, senior analyst at BNP Paribas Securities in Tokyo, estimated the recall could cost at least $128 million.

“Of course, seven million vehicles is a huge number, but it’s probably not going to be like last time when customers in the United States avoided buying Toyota cars. This sounds like a completely different scale from then,” he said.
Reuters

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