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Toyota Recalls 60K Cars in North America over Faulty Airbags

Toyota Motor Corporation TM announced that it is recalling around 60,000 automobiles in North America due to faulty front passenger airbags, which may fail to deploy in the event of a crash. This poses the risk of injury to front seat passengers of the cars.

The vehicles recalled by Toyota mainly include Avalon and Camry vehicles of model year 2016. Most of these cars were sold in the U.S. However, around 1,500 of the affected vehicles were sold in Canada and Mexico.

Toyota confirmed that these vehicles are equipped with a system which activates or deactivates the front passenger airbags according to the weight of the passenger. The systems may not be properly adjusted during production in some vehicles. As a result, the front passenger airbags and knee airbags may fail to deploy.

Toyota is unaware about the actual statistics related to the occurrence of this problem. The automaker will be informing the owners about the defect and dealers will repair the vehicles free of cost.

The auto industry is under pressure due to a series of recalls by different companies. Safety recalls dent the brand image of a company. Recently, Honda Motor Co., Ltd. HMC recalled 143,000 vehicles in Japan as their airbags are equipped with faulty inflators produced by Daicel Corp. One such airbag failed to deploy in a crash, leading to the recall. Honda confirmed that the propellant used in these airbag inflators is inappropriate and has improper velocity. These Daicel inflators are placed in airbag modules, which are produced by Nihon Plast Co.

Zacks Rank & Key Picks

Toyota currently carries a Zacks Rank #3 (Hold).

Some better-ranked automobile stocks include Cooper Tire & Rubber Co. CTB and Superior Industries International, Inc. SUP. Both the stocks sport a Zacks Rank #1 (Strong Buy).

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HONDA MOTOR (HMC): Free Stock Analysis Report
 
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
 
SUPERIOR INDS (SUP): Free Stock Analysis Report
 
COOPER TIRE (CTB): Free Stock Analysis Report
 
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