Big headache for one of the world's big automakers,Toyota recalling 7.4 million motors around the globe due to the malfuncitoning windows switches. Cars affected include some of Toyota's most popular motors: Vios,Corolla and Yaris. The biggest number of recalls will be in the key US market and more than a million in Europe,but 1.4 million vehicles recalled in China,the world's fastest growing car market.Paul Newton says the risk is more theoretical than dangerous.
This is really quite minor in terms that the risk is theoretical, it affects a lot of vehicles, but nobody has been hurt and there is no reported incidents of fires or anything else.
The news is double trouble for Toyota,now struggling in China on the back of rising political tensions with Japan.Toyato sales in China nearly halved in September while other foreign car makers such as BMW gained attraction. China accounts for over 10% of Toyota sales.
The spat between Japan and China is really quite serious and we're actully working on our next forecast with a view to Chinese sales for the Japanese automakers,really,you know,seriously down on where we thought they would be because of this.
After an excellent start to the year,the company share price have wobbled in the past 6 month. With its quality control called further into question,Toyato could face a sad tune in China and beyond.
