Faulty Accelerator Pedal
The crisis facing Toyota is spreading to Europe and China as the large-scale recall expands over a questionable accelerator pedal and the dangers it presents.
No word on how many cars will be recalled in Europe, but the production of cars will continue in Europe, despite a shutdown of production at five U.S. facilities announced earlier this week.
The China recall is for more than 75,000 RAV4 SUVs.
Late last year, Toyota announced a recall of 4.3 million Toyota and Lexus vehicles, the company’s largest recall ever. Toyota added 1.1 million vehicles in a recall announced Wednesday.
While the auto maker stock price fell 3.9% on the Tokyo Stock Exchange Thursday, Nissan Motor Co. and Honda Motor Co’s shares both closed up nearly 3%, reports the Wall Street Journal.
Both companies claim they will refrain from offering incentives or advertising to capitalize on the woes of Toyota.
Because of product liability lawsuits, Toyota said last week it would recall vehicles in the U.S. and Canada because of a flawed part made by CTS Corp. that could “in rare instances, mechanically stick in a depressed position or return slowly to the idle position,” reports Business Week.
About 1.7 million vehicles fell under that recall as well as a November recall to reshape the accelerator pedals to prevent it from being wedged beneath floor mats. The company still hasn’t determined the precise fix.
The recall in China is due to the same accelerator pad, though the company has reportedly not received any complaints of injuries related to the defective product.
Sales of the RAV4 in China rose 21% in 2009 from the previous year, reports CNN. While the global recall affects eight models, Toyota does not expect to recall other models in China for this problem. #