Recall will deal a blow to Japanese carmaker’s effort to recover image: analystsToyota Motor Korea is on alert after its Japan-based headquarters decided to recall more than 7 million vehicles in the U.S., Europe and elsewhere around the world over a faulty power-window switch.
Though the carmaker’s Korean unit tried to placate local consumers stressing that the recall does not involve vehicles sold to Korean consumers, some analysts said it could hamper Toyota Motor’s effort to bounce back in the local market.
The second round of recalls in major overseas markets comes as Toyota wages uphill battles with Hyundai Motor Group and German players in Korea.
Over the past few months, Toyota Motor Korea is believed to have overcome an extreme sales drop from an earlier massive recall from 2009 to 2011 and natural disasters in its home country.
“Amid its desperate effort, there is no doubt that Toyota has faced another negative factor (in Korea as well as in the overseas market),” said Seo Sung-moon, a research analyst at Korea Investment & Securities.
He predicted that “Toyota’s further woes (its largest-ever recall) would eventually mean gains for Hyundai Motor and Kia Motors.”
Standard & Poor’s auto analyst Efraim Levy said in a research report that the recall “takes some of the sheen off its recovering brand image and should have a financial impact.”
Toyota Motor Corp. CEO Akio Toyoda has vowed to become the champion of sales among foreign automakers in Korea by 2014, promising tough competition with German automakers such as BMW and Mercedes-Benz.
He had expressed strong resolve to restore the carmaker’s image, undermined by the recall incident, and swiftly normalize production capacity, which was damaged by the magnitude 9.0 earthquake and tsunami in Japan in March 2011.
Toyota Motor Corp. said Wednesday that it is issuing its largest-ever recall ― 7.43 million vehicles worldwide ― to fix power window switches for fire risks. The recall includes 2.52 million vehicles in the U.S.
It announced that it will inspect and apply special fluorine grease to the driver’s-side power window master switch.
The recall includes more than 1 million Toyota Camry sedans in the U.S., the best-selling car here for more than a decade.
It also covers 64,000 2009 Pontiac Vibe hatchbacks designed by Toyota for sale by General Motors, including 47,000 in the U.S.
Toyota first began investigating the issue in September 2008, when it received a field report of an unusual smell from a power window switch. Toyota said the switch may experience a “notchy” or sticky feel during operation.
By Kim Yon-se (
kys@heraldcorp.com)
