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“At Toyota, we care about your safety. That's why we’re investing 1 million dollars every hour to improve our technology and your safety. It’s an investment that’s helped Toyota earn multiple top saftey pick awards for 2010 by the Insurance Institute for Highway Safety. No other brand has won more.” (Toyota)
That’s an ad touting Toyota’s safety record. Against that backdrop, word the Japanese care maker is issuing another recall — this, its fourteenth for 2010. The voluntary recall covers more then 400,000 vehicles which might develop steering problems.
We’re analyzing coverage from Product Reviews, Autoline Daily, The New York Times, CNBC and Blogging Stocks.
Product Reviews says that Toyota’s reputation will continue to suffer for this.
“Only now (have) the Japanese noticed that sales have started to decline as consumers lose trust in the brand — a shame as their build quality used to be bulletproof.”
Autoline Daily reports, this is one of the more dangerous recalls you can have.
“373,000 Avalons are being recalled because of improper castings on the steering lock bar which can cause cracks to develop. Also, nearly 40,000 Lexus LX470s are being recalled because of a steering shaft problem and let me tell you when the steering breaks — you are in trouble.”
The New York Times reports Toyata first learned from a customer about the problem in 2007, and then again in 2008, but believed those to be isolated instances. But the company’s handling of the situation is a problem in and of itself.
“The length and timing of Toyota’s handling of the Avalon defect may interest federal safety officials. In May, the safety agency began an investigation into whether Toyota improperly delayed a 2005 recall of almost one million 1989-1998 model Toyota trucks. Federal regulations require automakers to notify the safety agency within five days of learning of a defect.”
CNBC says, so far, reports of accidents linked to the defect have been low.
“Toyota says it’s gotten reports of three accidents related to the problem but no additional injuries.”
Blogging Stocks reports that while Toyota has already had a financial downturn due to other problems, this could now add to it.
“Perhaps the downside related to the recall will be mitigated a bit because there aren't too many new cars involved in the recall. However, the bad news will more than likely have a negative impact on the shares — something Toyota doesn't need right now.”“
So what do you think? Will this further damage Toyota?
Writer: Kelly Chase
Producer: Newsy Staff
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