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Toyota announces one of the largest recalls ever

Rachel Stoltzfoos Staff Reporter
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Toyota announced a massive recall of more than six million vehicles worldwide Wednesday, as the shadow of the GM ignition-switch controversy looms over the auto industry.

The announcement marks one of the largest auto recalls ever, although Toyota said in a statement it’s not aware of any deaths or injuries related to the faulty vehicles, Forbes reports.

Recently GM announced a recall of 2.6 million vehicles with faulty ignition switches, now tied to at least 13 deaths. (RELATED: Congress grills GM CEO about vehicle recalls)

Spiral cables that could prevent driver-side airbags from deploying are the problem in about 3.5 million of the vehicles, including Corolla and Camry. Another 2.3 million may have faulty front seats, which could move in a crash.

A $1.2 billion settlement last month related to Toyota’s handling of a 2009-2010 recall fiasco, and resulting pledge to improve the recall process, could partly explain the recall, according to Forbes.

Efraim Levy, a senior equity analyst at S&P Capital IQ, told USA Today the Toyota settlement and GM controversy have “ushered in a new era,” and directly reflect the regulatory safety environment, as well as aversion to the wrath of the U.S. government.

“No one makes a perfect car,” Levy said. “I don’t think regulators have a problem with recalls, but they must be done quickly.”

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