Toyota recalls cars after becoming aware of a major engine issue. The car manufacturer announced this morning that it would be recalling around 1.03 million vehicles in Japan, North America, Europe, and other regions due to a major engine wire harness risk which could cause the engine to burst into flames.
Toyota Recalls Cars: Prius Hybrid Models Affected
Toyota’s announcement follows a domestic recall announcement made by Japan’s transport ministry. The Japanese-based car company states that the affected vehicles have a wire harness that connects the hybrid power control unit that has come into contact with the covering at the connecting point.
When dust accumulates over time on the cover or the wire harness, the insulation on the wires could wear down due to vehicle vibrations. This could then cause an electrical short circuit which could generate heat and lead to the risk of a fire. So, the Toyota recall is making sure this doesn’t happen.
The issue affects vehicles that were produced in Japan between June 2015 and May 2018. Toyota Spokesman Jean-Yves Jault told CNBC that nearly half of the Toyota recalls will take place in Japan. The vehicles in question are the plug-in version of the Prius and the C-HR compact crossover SUV. In the US, only the Prius model would be recalled, which they expect to be just over 190,000 vehicles.
This isn’t Toyota’s first issue with their Prius models. Back in 2016, there was a Toyota Prius recall that affected more than 1.7 million vehicles over issues related to their parking breaks and airbags. The company has also had to recall more than 20 million of its cars in recent years in response to the Takata exploding airbag.
US drivers should start receiving recall notices by mail this month.
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Toyota Stock Movement (NYSE:TM)
According to Yahoo Finance, Toyota’s stock hasn’t taken a huge hit on the market today after news broke about the recalls. At press time, TM stock is currently trading at $120.60 a share, down -$1.41 (-1.16%).
What do you think of the Toyota Prius recall? Will this recall eventually start affecting Toyota’s stock?
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