Toyota Recalls 3.37 Million Vehicles for Airbag and Emission Control Issues

Toyota Motors (NYSE: TM) announced on Wednesday it was recalling $1.43 million vehicles over the world for defective air bags and another 2.87 million vehicles for faulty fuel emissions controls. Some 932,000 vehicles are involved in both recalls, so the total number of affected vehicles is 3.37 million, while it has not reported any injuries or fatalities related to either recall

There are three main hybrid models involved in this recall, which are the Prius, the Prius Plug-in and the Lexus CT200h produced between October 2008 and April 2012. Nearly 500,000 of the 1.4 million cars being recalled are in the U.S.

The first defective air bags related recall involved 743,000 vehicles in Japan, 495,000 in North America, 141,000 in Europe, 9,000 in China and 46,000 in other regions. The problem with Takata airbags involves their inflaters – metal capsules loaded with propellant that force airbags to deploy nearly instantly in a crash. Takata’s inflaters can rupture violently, sending shrapnel flying toward drivers or passengers. The air bag manufacturer, Autoliv Inc. based in Stockholm, Sweden, said it is cooperating fully with the recall, which also estimated the cost of the recall to it at $10 million to $40 million. The shares of Autoliv were down 4.7 percent at $105.00 in premarket trading. The stock fell as much as 16 pct to 765 Swedish kronas on the Stockholm Stock Exchange, their lowest since December 2014, according to the Reuters.

The second recall affects various Prius models, the Auris, Corolla, Zelas, Lucas and Lexus HS250h and CT200h produced from April 2006 through August 2015 – 1.55 million vehicles in Japan, 713,000 in Europe, 35,000 in China and 568,000 elsewhere, but none in North America. The problem with second recall is related to a mechanism in vehicles’ fuel tanks that releases evaporated fuel, which may cause small amounts of fuel to leak when drivers fill up their tanks.

Toyota Motor’s U.S. listed shares were down 1.2 percent at $98.69 in premarket Wednesday trading.

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