Japanese automaker Toyota Motor Corp (NYSE: TM) said on Wednesday that it is recalling about a million vehicles in the U.S. owing to issues related to airbag deployment.
What Happened: Front passenger seat airbags might not deploy in certain crashes due to a sensor manufacturing error, thereby increasing risks of injury, the company said in a statement.
The recall includes model year 2020-2022 Toyota as well as Lexus vehicles. The Toyota vehicles to be included are the Avalon, Camry, Corolla, RAV4 and Highlander. The hybrid version of some of these vehicles as well as Lexus' ES350 and RX350 are also part of the recall.
As for a solution, dealers will inspect the vehicles and replace sensors if they deem it necessary.
What Next: Toyota is also separately recalling about 12,600 model year 2022-2023 Corolla Cross vehicles over a similar issue involving front passenger seat airbag deployment. Though these vehicles were previously inspected under a different recall, the inspection process then specified might not have identified the issue and hence the company's dealers will now re-inspect them and make necessary replacements at no cost to the customer.
Until a fix is deployed, Toyota recommends that nobody be seated in the front passenger seat of the vehicle involved in the recall.
Price Action: On Wednesday, Toyota shares closed 2.2% lower at $179.94 in New York. Their shares declined 1.24% in the after-hours trading. Toyota shares were seen 3.8% lower at JPY 2,544 ($17.79) in Tokyo, at the time of publishing.