MM2004
11-14-2012, 12:15 PM
Toyota Motor Corp (http://javascript<b></b>:void(0);). said Wednesday it will recall a total of 2.77 million vehicles world-wide to fix shaft and water-pump defects, just a month after the company's biggest recall for a single part, in a move that may once again dent its reputation for quality after the massive recalls two years ago.
Recalls don't necessarily hurt a company's sales in the long term. Still, vehicle reliability plays a large part in the strength of Toyota. Successive large recalls could negatively affect the company's brand image, as seen in a series of serious glitches by the car maker in 2009 and 2010 when it came under harsh criticism for its slow response to vehicle flaws. Toyota has since then aimed for quick responses to fix defects as it strives to regain customers' trust.
For the latest repairs, Toyota will recall 2.76 million vehicles due to a defect in the shaft connecting the steering wheel to the gearbox, a spokeswoman for the company said. The problem affects 10 models produced between August 2000 and December 2011, including the Corolla and Avensis,
The company also will recall a further 630,000 vehicles in five models such as the second-generation Prius and the FCHV-adv fuel-cell vehicle, built between May and September 2011, to fix a defect in the water pump used in the hybrid system, the spokeswoman said.
In all, 620,000 vehicles have both the shaft and water-pump defects, including the second-generation Prius, the spokeswoman said.
There have been no reports of accidents or injuries related to these faulty parts, she added.
The latest glitches follow a global recall of 7.4 million vehicles by Toyota last month, in the company's largest recall to date for a single part.
This is an unwelcome setback for Toyota after the Japanese car maker last week posted a solid quarterly profit and lifted its earnings forecast for the current business year. The company has been bouncing back from the March 2011 earthquake and tsunami, despite faltering sales in China related to a consumer backlash amid the territorial disputes between Beijing and Tokyo.
On the Tokyo Stock Exchange, Toyota shares fell slightly on Wednesday to close at ¥3,060 ($38.54), their lowest for the day. The benchmark Nikkei 225 Stock Average finished nearly flat.
To fix the defective shaft that might disable the steering function, Toyota will recall 1.51 million vehicles in Japan, 669,000 in the U.S. and 496,000 in Europe, with the rest of the affected vehicles in Australia, the Middle East, Asia and other markets. The pump glitch, which might cause the vehicles to be unable to run, affects 350,000 vehicles in the U.S., 175,000 in Japan, 83,000 in Europe, and the rest in other markets.
Source: (c) Wall Street Journal
Recalls don't necessarily hurt a company's sales in the long term. Still, vehicle reliability plays a large part in the strength of Toyota. Successive large recalls could negatively affect the company's brand image, as seen in a series of serious glitches by the car maker in 2009 and 2010 when it came under harsh criticism for its slow response to vehicle flaws. Toyota has since then aimed for quick responses to fix defects as it strives to regain customers' trust.
For the latest repairs, Toyota will recall 2.76 million vehicles due to a defect in the shaft connecting the steering wheel to the gearbox, a spokeswoman for the company said. The problem affects 10 models produced between August 2000 and December 2011, including the Corolla and Avensis,
The company also will recall a further 630,000 vehicles in five models such as the second-generation Prius and the FCHV-adv fuel-cell vehicle, built between May and September 2011, to fix a defect in the water pump used in the hybrid system, the spokeswoman said.
In all, 620,000 vehicles have both the shaft and water-pump defects, including the second-generation Prius, the spokeswoman said.
There have been no reports of accidents or injuries related to these faulty parts, she added.
The latest glitches follow a global recall of 7.4 million vehicles by Toyota last month, in the company's largest recall to date for a single part.
This is an unwelcome setback for Toyota after the Japanese car maker last week posted a solid quarterly profit and lifted its earnings forecast for the current business year. The company has been bouncing back from the March 2011 earthquake and tsunami, despite faltering sales in China related to a consumer backlash amid the territorial disputes between Beijing and Tokyo.
On the Tokyo Stock Exchange, Toyota shares fell slightly on Wednesday to close at ¥3,060 ($38.54), their lowest for the day. The benchmark Nikkei 225 Stock Average finished nearly flat.
To fix the defective shaft that might disable the steering function, Toyota will recall 1.51 million vehicles in Japan, 669,000 in the U.S. and 496,000 in Europe, with the rest of the affected vehicles in Australia, the Middle East, Asia and other markets. The pump glitch, which might cause the vehicles to be unable to run, affects 350,000 vehicles in the U.S., 175,000 in Japan, 83,000 in Europe, and the rest in other markets.
Source: (c) Wall Street Journal