Toyota Motor Corp.’s share price down, recalls 247 000 vehicles in the U.S. due to defective air bags

Toyota Motor Corp. withdrew a total of 247 000 vehicles in the U.S. due to a problem with their air bags. This is the latest vehicle withdrawal in a series of recalls, which affected other models.

One of the spokesmen of Toyota, John Hanson, did not immediately respond to e-mailed requests for comments, sent after regular business hours. Later he said for Bloomberg: “This is a very focused attempt to raise awareness with owners of affected vehicles in these particular regions, where we have found the incidence of failures is the highes.”

The companys recalls include SUVs and pickup trucks because of potentially defective front passenger air bag inflators, supplied by Takata Corp. Toyota warned its customers in an official statement that the air bags can rupture and send metal sharpnel into the passenger compartment. The companys warning to its clients comes at a moment when the National Highway Traffic Safety Administration has been trying to reach more than 4.7 million motorists, who have been driving with potentially defective air bags.

The latest recalls of the company include: 2002-2005 Lexus SC; 2003-2005 Toyota Corolla; 2003-2005 Toyota Matrix; 2002-2005 Toyota Sequoia; 2003-2005 Toyota Tundra and the 2003-2005 Pontiac Vibe. Toyota is not the only company that has been withdrawing some of its vehicles. Other car manufacturers such as Honda Motor Co. and Fiat Chrysler Automobiles also recalled vehicles due to defective Takata air bags.

The recalls, which Toyota and other car manufacturers started in the U.S., were reported to have started in high-humidity areas in the region. The National Highway Traffic Safety Administration (NHTSA) said in a statement, cited by Reuters: “At this point, the issue appears to be a problem related to extended exposure to consistently high humidity. However, we are leaving no stone unturned in our aggressive pursuit to track down the full geographic scope of this issue.”

Toyota Motor Corp. was 1.61% down to close at ¥5 931 per share today, marking a one-year decrease of 5.86%. The company is valued at ¥16.59 trillion. According to the Financial Times, the 23 analysts offering 12-month price targets for Toyota Motor Corp. have a median target of ¥7 600, with a high estimate of ¥9 400 and a low estimate of ¥6 500. The median estimate represents a 26.08% increase from the last price of ¥6 028.