Toyota Motor Corporation (TM - Free Report) announces a global recall of more than 1 million of its Prius and C-HR compact crossover cars, per Bloomberg. The affected vehicles have the risk of catching fire.
Out of the 1.03 million recalled vehicles, 192,000 are from the United States and 554,000 are from Japan. This affects the latest Prius model, which includes a plug-in variant, whose production has been initiated in 2015. The current generation of hybrid C-HR, which were manufactured until May 2018, has also been recalled.
The affected vehicle’s engine wire harness, which is linked to the power control unit, may damage over time that can lead to a short circuit or catch fire. Per management, one case of smoke emission from a car has been reported without any injuries.
Toyota Motor Corporation Price and Consensus
This marks one of the major recalls by Toyota, which is not related to the Takata airbag issue. Earlier, in January, Toyota announced a recall of 601,300 vehicles due to flawed Takata airbags. The recalled units comprise Toyota and Lexus models.
In the past six months, Toyota’s stock has lost 7.1%, outperforming 10.9% decline recorded by the industry it belongs to.
Zacks Rank & Key Picks
Toyota currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space include PACCAR Inc. (PCAR - Free Report) , Navistar International Corporation (NAV - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) . PACCAR and Navistar carry a Zacks Rank #2 (Buy) while Allison Transmission sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PACCAR has an expected long-term growth rate of 10.8%. Over the past three months, shares of the company have gained 4.4%.
Navistar has an expected long-term growth rate of 5%. Shares of the company have risen 6.9% in the past three months.
Allison Transmission has an expected long-term growth rate of 10%. Over the past three months, shares of the company have gained 17.9%.
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