Toyota Motor Corp (ADR) (NYSE:TM) has announced that it is recalling approximately 2.9 million cars in Oceania, China, Japan and other areas because of an airbag inflator that is potentially faulty. Some of the affected models include Toyota RAV4 and Toyota Corolla Axio. The airbags are said to be prone to exploding when exposed to hot conditions for a long time.
According to Toyota, when the numbers are broken down, about 750,000 of those vehicles were sold in Japan while 1.16 million were sold in Oceania as well as other smaller markets including the Middle East. Toyota vehicles that were sold in the biggest market for Toyota, North America, are not part of the recall.
Widespread problem
The Takata airbags have also forced other vehicle manufacturers such as Hino Motors, Mitsubishi Motors and Fuji Heavy Industries recall a combined total of about 240,000 cars in Japan. Transport authorities around the world are of the view that the airbag inflators which contain ammonium nitrate are unsafe when used in the absence of a drying agent. Consequently, a recall of approximately 100 million vehicles has been ordered since last year. This latest recall by Toyota is still part of that recall.
In the United States the deaths of 16 people has been linked to the exploding Takata inflators and this has resulted in the largest-ever vehicle recall globally for the auto industry. At the moment the beleaguered airbag maker is looking for a financial sponsor who will assist in meeting the costs associated with the call. Earlier this year, Takata took a guilty plea in the United States in a felony charge in which it agreed to a settlement amounting to $1 billion.
No fatalities in New Zealand
In New Zealand, approximately 6,000 Toyota vehicles are expected to be recalled of which about 4313 are Toyota Corolla cars while 1490 are Toyota Yaris cars. However, there have been no injuries reported in New Zealand that can be attributed to the faulty airbag inflator.
“Toyota New Zealand is not aware of any faulty deployments in Toyota or Lexus vehicles associated with the global airbag recall,” said the car maker in a statement.
On Thursday shares of Toyota Motor Corp fell by 0.17% to close the day at $110.06.
