Toyota Recalls Over 145K Vehicles Amid Production Decline In May - What's Going On?

Author: Nabaparna Bhattacharya | June 27, 2024 11:52am

Toyota Motor Corporation (NYSE:TM) has issued a recall for select 2024 models, including Toyota Grand Highlander and Lexus TX350, TX500 Hybrid, and TX550 Hybrid+.

The recall addresses potential issues with the driver’s side curtain airbag deployment, which may not function correctly and could partially deploy outside of open windows.

Per a statement from the U.S. National Highway Traffic Safety Administration, a remedy is being developed following the recall of 145,254 Toyota vehicles.

Earlier this month, the U.S. National Highway Traffic Safety Administration said that the Japanese automaker is recalling over 100,000 vehicles in the U.S. over concerns that debris in its engines might cause them to stall and cause loss of driving power.

The recalled 2022-2023 Tundra and Lexus LX600 vehicles were equipped with V35A engines. Debris from the manufacturing process might not have been cleared from these engines during production and this may cause a loss of motive power, the auto safety regulator said then. Sudden loss of motive power can increase the chances of a crash, particularly at higher speeds.

Meanwhile, the company released its sales, production, and export results for May 2024. Production for the month dropped by 4% to 812,191 vehicles, with a notable 22% decrease in China.

Reuters noted that this decline is compounded by competitive pricing strategies among Chinese brands in the world’s largest automotive market.

Price Action: TM shares are trading higher by 0.45% to $204.10 at last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Posted In: TM