Faulty vehicle recalls: Huge losses for Toyota manufacturers

Feb 9th, 2011 | By | Category: Media Release

Toyota, the world’s leader in motor vehicle manufacture has in the last one year been hit by huge losses through recall of faulty cars. Two weeks ago, the company announced that it’s recalling 1.7 million cars worldwide to fix defective parts, including leaky fuel systems. .Toyota’s woes increase as more and more faulty cars are recalled around the world. A general view on the company’s record for the last one year shows that is has made huge losses in free repairs. Last year alone saw millions of vehicles recalled, thus costing the company millions in losses.

In the U.S alone, over 245,000 luxury Lexus sedans are to be recalled  for inspection of the fuel pressure sensor installation. The models according to the official report include,  the 2007 Lexus GS300 and GS350, 2006-09 Lexus IS250 and 2006-08 Lexus IS350.

An additional 176,000 cars in Canada, Europe and other markets will be recalled for the same issue. These will involve inspecting for fuel leaks and tightening the fuel-pressure sensor,  free of charge for all the affected vehicle owners. Other than the sensor problem, 1.3million vehicles will be recalled for high-pressure fuel-pump-check valve and fuel-delivery pipe. In their statement, Toyota said that the latter problem does not involve any vehicles sold in the U.S.

The all time worst hits came last year October, when Toyota had to fix a defect in the master cylinder brake seal for 1.7 million Avalons, Highlanders and other models worldwide. As per the Reuters reports, the total number of Toyota vehicles recalled since late 2009 to more than 15 million worldwide.

The constant incidents of recalls of faulty vehicles is taking toll on the reputation of Toyota. These might affect the sale of Toyota vehicles in the coming years if the problems are not curbed soon.


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