Toyota recalls more cars for dangerous Takata air bags

TOKYO - Toyota Motor Corp said on Thursday it would recall 57,000 vehicles globally to replace potentially deadly air bags made by Takata Corp, as a safety crisis around the Japanese auto parts maker looks far from being contained.

Toyota's action follows a recall by rival Honda Motor Co for the same problem two weeks ago after revelations of a fifth death, in Malaysia, linked to Takata's air bag inflator. More than 16 million vehicles have been recalled worldwide since 2008 over Takata's air bag inflators, which can explode with too much force and spray metal fragments into the car.

Toyota is recalling some Vitz subcompacts, called Yaris in some markets, and RAV4 crossover models made between December 2002 and March 2004. About 40,000 are in Japan, 6,000 in Europe and the rest in other markets outside North America. Toyota said it was not aware of any injury or death related to the recall.

Separately, Toyota's small-car subsidiary Daihatsu Motor Co also issued a recall, in Japan, of 27,571 Mira minivehicles produced between December 2002 and May 2003 for the same reason - its first recall involving Takata inflators.

About 2.6 million vehicles have been recalled in Japan so far for Takata's air bag inflators, a transport ministry official said.

Takata-related recalls are almost certain to balloon after U.S. safety regulators on Wednesday ordered the company to expand a regional recall of driver-side air bags to cover the entire United States, not just hot and humid areas where the air bag inflators are thought to become more volatile.

Takata has so far resisted expanding the recall, saying that could divert replacement parts away from the high-humidity regions that need them most.

Tuesday deadline

The U.S. National Highway Traffic Safety Administration (NHTSA) has given Takata until Tuesday to issue a nationwide recall, and could fine it up to $7,000 per vehicle if it doesn't comply. It remains unclear how many more vehicles that would add, but it could be in the millions, affecting five automakers: Ford Motor Co, Honda, Chrysler Group LLC, Mazda Motor Corp and BMW AG.

A U.S.-wide recall of driver-side air bags could cost an estimated 70 billion yen ($600 million), Nomura Credit Research analyst Shintaro Niimura wrote in a Nov. 26 report.

"Takata could need nearly 200 billion yen ($1.7 billion) of reserves in the event of a U.S. nationwide recall (including passenger-side air bags), and the company's cash-on-hand would be tightly squeezed," he wrote, noting Takata had just 8.33 billion yen of cash and deposits.

"If the company makes any missteps, we cannot say that there is 'zero' chance of the company dying a sudden death - that is, being hit with excessive debt or facing a cash-insolvency bankruptcy," Niimura added.

Shares hit

NHTSA's action and the latest recalls come on the heels of an announcement by Japan's transport ministry on Wednesday that it received a report of an "unusual deployment" of a Takata air bag as it was being removed from a scrapped car on Nov. 6. The inflator was manufactured in January 2003 at Takata's Monclova, Mexico factory, and had not been subject to recalls, at least in Japan, raising the prospect of an expanded recall, the ministry said.

A Toyota spokesman said the scrapped car was a 2003 Will Cypha, a Japan-only compact model that is no longer in production. Toyota said it was investigating the issue as part of its wider probe into Takata's air bag inflators. "We will take prompt and appropriate action if we find there is a need for a recall as a result of the investigation," it said.

Takata shares dropped as much as 7.9 percent in Tokyo on Thursday, closing down 4.8 percent. Toyota shares eased 0.5 percent and Daihatsu shares slipped 1.2 percent, roughly in line with the broader market. Shares of Honda, Takata's top customer, underperformed other auto stocks, falling 3.3 percent.

Honda had said the Takata air bag inflator that failed in the Malaysia crash had likely been exposed to excessive moisture at the supplier's now-shuttered plant in LaGrange, Georgia. A transport ministry official said no further recalls are expected in Japan related to the problem identified at the LaGrange line between November 2001 and November 2003.

A second U.S. congressional hearing is scheduled for Wednesday, where representatives from Takata, NHTSA and several automakers will testify.

source: interaksyon.com

GM recalls another 3.4 million cars for ignition problem

WASHINGTON — General Motors on Monday recalled 3.4 million cars in North America to fix an ignition problem that could cause the car to lose power that is linked to injuries.

The bulk of the 2000 to 2014 model-year cars — 3.2 million — are in the United States, the largest US automaker said.

GM said that the ignition switch may move out of the “run” position if the key is carrying extra weight and is jarred, such as when the car hits a pothole or crosses railroad tracks.

Switching out of the “run” position affects power steering and power braking and could cause air bags not to deploy in a crash.

GM said it knows of eight crashes and six injuries related to this recall.

The company said the recall stems from its review of safety issues following its recall in February of 2.6 million Chevrolet Cobalts and other small cars for ignition switch problems.

The cars covered in the newest recall are Buick Lacrosses, Chevrolet Impalas, Cadillac Devilles, Cadillac DTS, Buick Lucernes, Buick Regals, and Chevy Monte Carlos.

GM said addressing the problem would involve replacing existing ignition keys with new ones designed differently, or retooling existing keys.

“Until the rework or replacement is completed, owners of the recalled cars are urged to remove additional weight from their key chains and drive with only the ignition key,” GM said.

GM announced five other recalls for a total of 165,770 vehicles for a variety of problems, including with automatic transmissions and power steering.

The company said it knew of no crashes or injuries related to four of the conditions, but injury data was unclear for a problem that could cause the rollover sensor to unintentionally deploy the roof rail air bags, which happened on 15 occasions.

GM said it would take a charge of about $700 million for recall repairs in the second quarter, including the $400 million provision it previously announced. That brings to $2.0 billion the amount set aside for recall costs in the first half of the year.

GM has now recalled some 20 million vehicles this year in the US and foreign countries for safety problems.

The automaker is under congressional and, reportedly, Justice Department investigation over why it failed to act on the Cobalt ignition switch problem until this February despite knowing about it for more than 11 years.

That problem has been tied to dozens of accidents and at least 13 deaths, according to GM. Outside analysts have said the death toll could be much higher.

The company is facing multiple lawsuits for that problem, which analysts say could ultimately cost the company billions of dollars in damages.

GE chief executive Marry Barra will return to Capitol Hill on Wednesday for another congressional grilling before the oversight panel of the House of Representatives about the Cobalt recall scandal.

source: interaksyon.com

Chrysler recalls Jeeps, Ram pick-up trucks

NEW YORK CITY — Chrysler said Tuesday it was recalling 142,800 Jeeps and Ram pick-up trucks to fix a problem with software that controls instrument lighting and, on the Jeeps, the anti-lock braking system.
The majority of the recalls are for 132,000 Jeep Grand Cherokees in the model year 2014. Most of them — 91,559 — are in the United States. The rest are outside the US.

Chrysler, controlled by Italy’s Fiat, said there was a software problem on the Jeeps that randomly lit up the instrument lights or made them go dark. Engineers also discovered a software glitch with the vehicles’ anti-lock braking system that affects the instrument display.

The company recalled 10,800 Ram 1500, 2500 and 3500 pickups to upgrade software that controls instrument illumination. It said most of the trucks were still at dealerships.

The automaker said it was unaware of any associated accidents or injuries with any of the problems, and will update the software free of charge.

source: interaksyon.com

Nissan to recall 910,000 cars worldwide over accelerator issue

TOKYO — Japanese auto giant Nissan said Thursday it would recall about 910,000 cars worldwide over an accelerator glitch that can stall vehicle engines.

The global recall cover five models, including the Serena minivan and X-Trail SUV, produced between October 2004 and June this year, it said.

About 765,000 cars will be recalled in Japan, with about 100,000 units of its luxury Infiniti M sedan being called back in North America.

Another 24,000 vehicles in Oceania and others in Europe, the Middle East and Asia were also being recalled, a company spokesman said.

The recall comes after more than 1,400 complaints from customers, mostly in Japan.

No accidents tied to the accelerator glitch have been reported, the spokesman said.

If drivers step on the accelerator pedal at an angle, sensors measuring pressure exerted on the pedal can malfunction, causing an engine stall, Nissan said.

Japanese automakers, including Nissan rivals Toyota and Honda, have recalled millions of vehicles in recent years, dealing a blow to their reputation for safety and quality.

source: interaksyon.com