Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Toyota to recall 5.8 million cars in Japan, China, Europe over Takata airbags

Published 10/26/2016, 03:09 AM
Updated 10/26/2016, 03:09 AM
© Reuters. Models pose with Toyota Motor Corp's redesigned compact cars "Vitz" at unveiling in Yokohama

By Naomi Tajitsu

TOKYO (Reuters) - Toyota Motor Corp (T:7203) on Wednesday said it was recalling about 5.8 million cars at home and abroad over potentially faulty air bag inflators made by Takata Corp. (T:7312), including those used as replacement parts following a 2010 recall.

Automakers worldwide are ramping up the industry's biggest-ever recall after parts supplier Takata, under pressure from U.S. authorities, agreed earlier this year to declare more of its air bags as defective in the United States and other countries.

The air bag inflators in question use a chemical compound which can explode with excessive force after prolonged exposure to hot conditions, and have been linked to at least 16 deaths globally, mainly in the United States.

Toyota's latest recall includes the Corolla, one of the world's best-selling models, and the Vitz or Yaris subcompact hatchback model. It covers driver-side and passenger-side airbags installed in cars produced between May 2000 and November 2001, and April 2006 and December 2014, the company said in an email.

It affects about 1.16 million vehicles sold in Japan, about 820,000 cars sold in China and around 1.47 million cars in the European market.

The recall extends to Central and South America, Africa, the Near and Middle East and Singapore, and also includes the Hilux pick-up truck and the Etios line of sedans and hatchbacks.

The move shows the complicated nature of the inflator recall, which began around 2008 and continues to expand.

The latest recall includes about 20,000 cars which were fitted with replacement Takata inflators following an initial 2010 recall, as the replacement parts are also seen to be at risk of exploding as they do not contain a drying agent.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Transport authorities around the world now consider inflators without a drying agent to be unsafe, and have ordered all of them to be withdrawn.

Since global transportation authorities expanded their recall from May, about 100 million Takata air bag inflators have been classified as defective worldwide.

Takata is seeking a financial investor to help pay for huge liabilities from the recall, and has been meeting with potential sponsors and automaker clients to discuss its survival options.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.