Toyota Motor Co.’s (TM) stock closed 4% lower on the Nikkei 225 index after the Japanese automaker announced a recall of one million vehicles.
The safety recall involves 2020 to 2022 Toyota and Lexus models. Specifically, the recall involves the airbags in certain models made by Toyota subsidiary Daihatsu.
Daihatsu has been under regulatory investigation since April of this year after the company admitted to manipulating airbag safety tests carried out on thousands of cars, most of which ended up being sold under the Toyota nameplate.
Included in the recall are Toyota Avalons, Camrys, Highlanders, RAV4s, Siennas, Corollas, as well as some hybrid versions of those vehicles.
The recall impacts about 100,000 Toyota vehicles sold in Canada, said the company in a news release.
Toyota and Lexus dealers will inspect the airbag sensors in vehicles covered by the recall and replace them if needed at no cost to the owners.
Toyota said it will notify customers by the middle of February 2024 if their vehicle is part of the recall.
Prior to today (Dec 21), the stock of Toyota had increased 30% in 2023 to trade at $179.94 U.S. per share.
