Toyota Makes Global Recall For Steering Glitch

TOKYO (Reuters) – Famous Japanese carmaker, Toyota Motor Corp, made their second global recall on Wednesday. Nearly 2.8 million vehicles are expected to be called back due to the recent steering and water pump glitches acknowledged by the multinational company.

Toyota’s reputation could be forever damaged due to a new global recall that the company had to make for 2.77 million vehicles sold worldwide, including the popular hybrid model Prius. According to the statement released by the Japanese carmaker’s representatives, the steering system and the water pump are flawed and they need to be replaced by the end of the month to avoid further problems.

The multinational giant reassured customers that the glitches pose no risks to passengers and they could be, in fact, fixed in less than an hour. The costs, however, will be significantly big as analysts estimate that hundreds of millions of dollars will be spent for the replacement of the flawed mechanisms.

Deutsche Securities autos analyst Kurt Sanger is more optimistic about the impact that the global recall could have on the company’s reputation. He told Reuters reporters that the current global recall is not as alarming as the one between 2009 and 2011. Back then, Toyota was linked to a series of fatal crashes registered in the United States as a result of acceleration defects, its reputation being severely damaged. The company managed to regain its leading position in the car industry after the natural disasters that affected Japan last year.

Sanger is, in fact, convinced that Toyota is making the last two global recalls in order to prove customers that they are truly preoccupied about the quality of their vehicles. “They seem to continue to be obsessively monitoring these things and looking for potential problems before they arise,” he further explained.

Toyota’s report showed that 2.76 million vehicles worldwide have steering problems, whereas the water pumps of 630,000 gasoline-electric hybrid vehicles don’t work properly. The two recalls could overlap as spokespersons informed that some vehicles have both problems.

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