- Satoru Takada, a Tokyo-based auto analyst at Toward the Infinite World Inc.
The Japanese carmaker Toyota is going to recall more than 7.4 million vehicles worldwide, after discovering faulty power window switch which was a potential fire hazard. Despite the fact there have not been any injuries or accidents, 2.47 million vehicles in the U.S., 1.4 million in China, 1.39 million in Europe and 138,000 in the U.K. will be recalled to fix the problem. On Tuesday, Toyota Motor said its China sales dropped 48.9% on a yearly basis in September.
"The volume is big, and doesn't look good," said Satoru Takada, a Tokyo-based auto analyst at Toward the Infinite World Inc. "Even if you calculate the cost in a very simple way, it's going to be significant. What comes with standardizing platforms and parts is that these recalls become immense."
"It's not something that would cause any deadly accidents like the recall of 2009, so I do not think it would affect the company's profit or share price," said Satoshi Yuzaki, Tokyo- based general manager at Takagi Securities Co.
The Nikkei 225 Stock Average slumped 0.58 per cent, or 49.45 points, to 8,546.78. The broader Topix Index slid 0.4 per cent, or 2.89 points, to 713.95.
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