Toyota and other three automakers are recalling 3.4 million vehicles worldwide due to an airbag issue.
Toyota announced it will recall 1.73 million vehicles, from which 580,000 units from North America and 490,000 units from Europe, as some airbags in the front, next to the driver’s seat, might not inflate in case of crash. The airbags were manufactured by Japanese auto parts maker Takata. After Toyota, Honda and Nissan announced the recalls, Takata’s shares dropped 15% in Tokyo trading.
“It looks like the cost of the recalls may be pretty big,” said Satoru Takada, a Tokyo-based analyst at Toward the Infinite World Inc., referring to Takata. “It doesn’t seem like something that would be easy to identify and fix. But if the cause is clear, it shouldn’t have a lasting effect.”
Toyota said it will exchange the faulty airbag, a process which might take up to two and a half hours. Honda recalled 1.14 million vehicles, Nissan is recalling about 480,000 vehicles and Mazda 45,500 vehicles. Toyota said that so far no injuries or deaths were reported due to this problem.
“The involved vehicles are equipped with front-passenger airbag inflators which could have been assembled with improperly manufactured propellant wafers,” Toyota said in a statement.