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Toyota Recalling One Million Vehicles

Toyota Motor Corp has announced that it is going to recall close to 1.3 million cars across the world for two separate defects, according to Reuters. The recall will include 752,000 Corolla and Corolla Matrix cars in the United States. The defect is that the airbags could deploy inadvertently.

Since October, this is the third Toyota recall that involves over one million cars. In the airbag control unit, an IC chip has the possibility to malfunction when electrical interference occurs from other parts in the vehicle. This can cause the airbags to deploy when not needed, according to Toyota spokesperson Naoto Fuse.

The company is also recalling Corolla and Corolla Matrix vehicles in Mexico, Japan, and Canada. Minor injuries have been reported because of the problem, with abrasions occurring in 18 cases. The airbag will receive an electrical signal filter in its control module. Repairs to the vehicles being recalled should take anywhere from 60 to 90 minutes.

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The airbag control unit in the vehicles is manufactured by TRW Automotive Holding Corp, but the problem chip is supplied by a different company. The spokesperson did not mention where the chips are purchased. Toyota will feel the effect of the recall in the amount of $55 million, according to Koichi Sugimoto, a senior analyst with BNP Paribas in Tokyo. He said that Toyota might ask for its suppliers to compensate them.

“While this cannot be ignored, this amount is not going to dent Toyota’s operations and share prices are unlikely to be impacted much,” he said.

In another recall, Toyota is going to recall 385,000 Lexus IS. This includes 270,000 Lexus IS vehicles in the United States that have wiper issues, Fuse said. The arm nut of the front wiper might not be tight enough, which could cause the wipers to work improperly during rain and snow conditions. These repairs should take close to 30 minutes.

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Posted by on January 30, 2013. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

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