What's Going On With Toyota Shares After Recalling 211,000 Prius Cars Owing To Door Handle Issues?

Zinger Key Points
  • Toyota recalls 211,000 Prius cars globally due to faulty door handles, with 55,000 in the U.S.
  • Safety risk: Water infiltration could short-circuit rear door latches, potentially causing doors to open during motion or accidents.

Toyota Motor Corporation TM shares are falling in the premarket session on Wednesday.

The company said it is conducting a safety recall involving certain 2023-2024MY Prius, Prius HEV (Prius Prime) vehicles in Japan, North America, Europe, and Asia, according to a company release. 

Approximately 211,000 vehicles are involved in this recall in total, with approximately 55,000 in the U.S. owing to door handle fault.

Water infiltration may cause electronic rear door latches to short circuit in the affected vehicles. 

Unlocked doors may open during motion or accidents, heightening the potential for occupant injury.

Affected vehicles will have both right and left rear door opener switches replaced with enhanced versions at Toyota dealers at no cost to the owners.

Toyota Motors said that customers in the U.S. and Canada will be advised to activate the automatic door locking feature when shifting from Park, as a precautionary measure until the remedy is accessible to prevent potential door openings due to a short circuit.

According to Benzinga Pro, TM stock has gained over 71% in the past year. Investors can gain exposure to the stock via Amplify ETF Trust Amplify International Enhanced Dividend Income ETF IDVO and Altrius Global Dividend ETF DIVD.

Recently, the National Highway Traffic Safety Administration initiated an investigation into the recall of 42,652 Ford Motor Company F SUVs, due to fuel leak risks, potentially causing fires.

On April 10, Ford recalled 42,652 Bronco Sport and Escape vehicles in the U.S. due to broken fuel injectors that may leak and induce a fire.

Auto behemoth General Motors Company GM has recently been in the news for vehicle recall issues. NHTSA has reportedly initiated a preliminary investigation into complaints concerning brake assist loss in 3,322 General Motors Cadillac Lyriq electric vehicles.

Read Next: Hyundai And Kia Recall Vehicles Over Charging Unit Concerns

Price Action: TM shares are trading lower by 1.34% to $233.36 premarket on the last check Wednesday.

Photo by RYO Alexandre on Shutterstock

Market News and Data brought to you by Benzinga APIs
Posted In: EquitiesNewsRegulationsMarketsMoversGeneralauto recallBriefsEurasiawhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!