Toyota Motor Corporation (TM - Free Report) announced a worldwide recall of 1.7 million vehicles to fix faulty Takata airbag inflators, per Reuters. The recall is part of the ongoing recall campaign announced by automakers in 2016.
The recalled vehicles are of the model year 2010 through 2015. The latest recall includes 4Runner, Corolla, Matrix and Sienna under Toyota while Lexus models include ES 350, GX 460, IS 250C, IS 350C, IS 250, IS 350 and IS-F. Although Toyota will start sending mails to the affected customers by the end of January, customers can also check the company’s website to know whether their cars have been recalled.
Out of the total recalled figure, 1.3 million Toyota and Lexus models are from the United States. Auto manufacturers are adding around 10 million more vehicle inflators in the United States, which already has been known as the largest recall in history. Earlier to this, automakers have recalled roughly 37 million U.S. vehicles, with 50 million airbag inflators. 16.7 million inflators are yet to be changed.
Toyota Motor Corporation Price and Consensus
Of late, this Japanese auto giant has been involved in several vehicle recalls, similar to other automakers across the globe. In the last month, Toyota announced a recall of about 70,000 Toyota and Lexus branded vehicles in North America to replace airbag inflator. The batch majorly consisted vehicles of model years 2002 through 2005.
Apart from Takata airbag replacements, the company has been recalling vehicles, owing to faulty vehicle parts. In November, Toyota announced a worldwide recall, consisting more than 400,000 vehicles along with Subaru Corporation. The vehicles had defective engines that could stop engine valves from opening while fuel is combusted, leading to accidents or severe engine damage. Out of the total number of recalled vehicles, Toyota’s count is 80,000. Regular recalls not only add to the company’s expenses but also hurt consumers’ confidence in the brand.
In the U.S. auto sales, the company witnessed a 0.3% year-over-year slump to 2.4 million vehicles in 2018. Its light-truck shipments rose 7.9% annually while car demand slumped 12%. The U.S. sales figure in 2018 marked the third sequential yearly drop in sales for one of the top auto-sellers.
Over the past three months, shares of Toyota have gained 5.3% compared with the industry’s increase of 3.3%.
Zacks Rank & Stocks to Consider
Toyota currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader auto sector are Bridgestone Corporation (BRDCY - Free Report) , Genuine Parts Company (GPC - Free Report) and Fiat Chrysler Automobiles N.V. (FCAU - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bridgestone has an expected long-term growth rate of 4.7%. Share price of the company has increased 4.7% in the past three months.
Genuine Parts has an expected long-term growth rate of 5%. Over the past three months, shares of the company have gained 1.5%.
Fiat Chrysler has an expected long-term growth rate of 25.3%. Shares of the company have gained 2.2% in the past month.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>