Due to faulty seat belts, the auto-maker has decided to call back almost 2.87 million of its SUVs from all across the globe.
Toyota Motor Corporation has announced on Thursday that it will be recalling 2.87 million of its SUVs globally due to faulty seat belts. This fault was discovered when a fatal accident incident happened in Canada and one in the United States in which a passenger was injured badly.
However, they have not yet announced that the injuries or fatality was due to the seat belt but it’s a smart move for them to act fast and recall all of their RAV4, RAV4 EV and Vanguard SUV models as they have become quite popular worldwide. Keeping the SUV in the market for longer would result in more accidents, more lives and a bad name for the company as well. According to an e-mail by the company’s spokeswoman, Kayo Doi the company has not yet confirmed if the fatality or injuries in the accident are connected with the faulty seat belts.
Kayo Doi added that the rear seat belts can be cut by metal seat-cushion frames in case of front crashes. This fault in the vehicle poses a huge issue in the image of the SUVs specifically the RAV4 because it has become on the top selling models in the United States. The top selling car in the American market for the last 14 years has been the Camry but it seems as though Toyota’s RAV4 is not too far behind anymore.
The spokeswoman also stated that after the Canadian regulators informed that the seat belts had been damaged during the crash test research the auto-maker initiated this call back strategy. But this is mainly due to the car’s design and not because of its suppliers. This recall includes 1.33 million automobiles in North America and over 625,000 from the European market and finally over 434,000 from the Chinese market, as per the report by the company.
Additionally, Toyota is not the only company recalling cars, presently Mitsubishi Motors Corporation is also working on repairing 1.4 million of its automobiles as well all across the globe, as per the information provided by Japan’s Transport Ministry.
Back in May 2015, the auto-maker recalled over 5 million vehicles worldwide due to faulty Takata airbags – in case of fatal incident, these airbags were susceptible. Furthermore, over 24 million cars of 14 global car manufacturer were called back to replace Takata airbags as they were unable to serve the purpose. It was considered the largest auto-safety recall in the history of the United States.
Toyota stock rose by 1.7% and is presently being traded at a share price of $107.45. During the session the highest share price was at $108.95 while the lowest was at $107.22 and the trade commenced with a share price of $108.50. The current EPS is 12.96 with price to earnings ratio of $8.29.
No comments:
Post a Comment