Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Toyota Motor Corp, the worlds biggest automaker, announced on Wednesday it will recall 625 000 hybrid vehicles globally to fix a software glitch that in rare cases could shut down the cars hybrid system.

The latest recall action comes after the Japanese car maker pulled back almost 2.9 million vehicles in late June to replace allegedly defective airbag inflators that could shatter a metal casing upon the airbags triggering and send shrapnel flying toward the passengers.

Wednesdays recall affects certain Prius v minivans, also known as Prius alpha and Prius+ in some markets, as well as some Auris hybrid vehicles, that were manufactured between May 2010 and November 2014.

Toyota said that the problem was linked to a software that controls a power converter, similar to an issue that last year led to the pullback of 1.9 million Prius cars. The issue stems from a current software setting for the motor/generator control ECU and hybrid control ECU which could result in higher thermal stress in certain transistors of the power converter, potentially damaging them.

“In limited instances, the hybrid system might shut down while the vehicle is being driven, resulting in the loss of power, bringing the vehicle to stop,” Toyota said.

The company added that 340 000 of the withdrawn vehicles were sold in Japan, 160 000 in Europe and 120 000 in North America, and that there have been no reports of incidents tied to the glitch.

Despite the massive recalls that have recently plagued the company, it said in May it expects to report a third consecutive record annual net profit in the current fiscal year.

Toyota Motor Corp rose 0.88% on Wednesday in Tokyo to JPY 8 273 per share, marking a year-on-year advance of 37.36%. The company is valued at JPY 28.03 trillion. According to the Financial Times, the 25 analysts offering 12-month price targets for Toyota Motor Corp have a median target of JPY 9 500, with a high estimate of JPY 10 500 and a low estimate of JPY 7 800. The median estimate represents a 14.83% increase from the last price of JPY 8 273.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • AUD/USD higher, but gains seemed cappedAUD/USD higher, but gains seemed capped Australian dollar advanced against its US counterpart on Wednesday, but upward movement seemed limited after the disappointing Chinese trade balance report.AUD/USD reached a session high at 0.9233 at 8:13 GMT, the highest point since July […]
  • Forex Market: EUR/USD daily trading outlookForex Market: EUR/USD daily trading outlook Yesterday’s trade saw EUR/USD within the range of 1.0652-1.0764. The pair closed at 1.0726, rising 0.63% on a daily basis, while extending gains from Wednesday. The daily high has been the highest level since November 16th, when the cross […]
  • Henkel to stick with acquisition plans, report statesHenkel to stick with acquisition plans, report states According to a report by Rheinische Post newspaper, consumer goods company Henkel intends to continue with its plan involving acquisitions despite rising interest rates."We have a strong balance sheet, we intend to make further […]
  • Bank of Russia leaves policy rate intact at 16%Bank of Russia leaves policy rate intact at 16% The Bank of Russia (CBR) left its key policy rate without change at 16% for a third consecutive meeting in April, in line with market expectations.The central bank warned that interest rates would need to remain elevated for longer […]
  • Japan suspends U.S. wheat importsJapan suspends U.S. wheat imports Hiromi Iwahama, director for grain trade and operation at Japans agriculture ministry, said the Asian nation suspended imports of western-white wheat and feed wheat from the United States. The U.S. government discovered an unapproved […]
  • Vivendi SA share price up, sells its Brazilian broadband unit GVT to Telefonica in a €7.24-billion dealVivendi SA share price up, sells its Brazilian broadband unit GVT to Telefonica in a €7.24-billion deal Vivendi SA shared in an official statement today that it agreed to sell its Brazilian broadband division GVT to Telefonica SA in a €7.24-billion ($9.3-billion) deal. The acquisition is made up of both cash and stakes in two other telecoms […]