Toyota share price down, 2006-2010 Corollas to be probed over unintended acceleration

Toyota Motor Corp. announced that it will recall 690 000 Tacoma pickup trucks, while as many as 1.69 million Toyota Corollas built between 2006 and 2010 could be investigated amid complaints of “unintended low-speed surging”, according to the National Highway Traffic Safety Administration. The NHTSA has also formally started to review a complaint stating that about 4.9 million vehicles manufactured by Fiat Chrysler Automobiles have an engine and air bag flaw.

Toyota recalled more than 10 million vehicles in 2009 and 2010 due to flaws linked to unintended acceleration and settled earlier this year a $1.2-billion deal with US prosecutors over its mishandling of safety problems, admitting it misled buyers.

Now the company faces a recall of 690 000 Tacoma pickup trucks manufactured between 2005 and 2011 to fix rear suspension parts that may break down. The Japanese automaker said that corrosion in the springs could cause springs to fracture and puncture the fuel tank, but no incidents were linked to the flaw. Toyota said owners will be notified when to bring their vehicles to local dealers for parts replacements.

Additionally, the U.S. National Highway Traffic Safety Administration said yesterday that about 1.69 million Toyota Corollas manufactured between 2006 and 2010 could be subjected to investigation after owners filed complaints related to “low-speed surging”, whereby brakes may fail to stop the car in time to prevent a crash.

Ed Lewis, a Toyota spokesman, said cited by Bloomberg: “Toyota will cooperate fully with any inquiry.”

The National Highway Traffic Safety Administration said it has received around 140 reports regarding 2006-2010 Toyota Corollas with a similar problem, and will examine each complaint to determine whether to grant the owners petition, dated September 11th, an investigation into the issue.

Yoshihiro Okumura, general manager at Chibagin Asset Management, said for the Financial Times: “There’s uncertainty about what decision US regulators will reach. It’s a pain at a time when shares had just been recovering.”

Separately, following a petition including 70 complaints, the NHTSA said it will carry out a probe affecting 4.9 million vehicles manufactured by Fiat Chrysler Automobiles. The agency will respond to a complaint by the Center for Auto Safety which stated that the auto makers Totally Integrated Power Modules, fitted into most vehicles built after 2007, can cause engine failure and disable air bags.

Toyota Motor Corp. fell by 0.39% in Tokyo on Tuesday to close at ¥6 463 per share, marking a one-year change of +3.08%. The company is valued at ¥22.10 trillion. According to the Financial Times, the 23 analysts offering 12-month price targets for Toyota Motor Corp. have a median target of ¥7 300, with a high estimate of ¥9 400 and a low estimate of ¥6 500. The median estimate represents a 12.52% increase from the previous close of ¥6 488.