Toyota Motor Corp. (TM) added 1.33 million vehicles to its series of recalls spanning a period of nearly one year. It includes Corolla sedans and Matrix hatchbacks manufactured between 2005 and 2008 and sold in the U.S. and Canada.
In December, the National Highway Traffic Safety Administration began an investigation into Corolla and Matrix vehicles from the 2006 model year due to a possible engine defect that could cause them to stall. Last week, the investigation also included the same vehicles of 2005 and 2007 model years.
Toyota has attributed the problem to improper manufacturing of the vehicles’ engine control modules by the Delphi Corporation. The defective engine control modules allowed cracks to develop on the circuit board, causing the engines to stall or fail to start.
As of now, three accidents and one minor injury involving the recalled vehicles have been reported. However, Toyota is unsure about their direct relation with the engine defects.
The automaker has decided to replace the engine control modules on the recalled vehicles free of cost. The companies will begin mailing notifications to owners of the affected vehicles from mid-September.
The past string of recalls has already tarnished Toyota’s reputation, resulting in declining sales, lower vehicle resale value and a fallen stock price. Since October last year, the automaker has recalled about 11 million vehicles globally related to problems such as faulty accelerator gas pedals, slipping floor mats and defective braking systems.
The automaker’s last global recall was in late July involving 480,000 Avalon sedans and Land Cruiser sport-utility vehicles. The recall was related to defective steering parts in the vehicles.
Toyota faces numerous personal injury and wrongful death lawsuits in federal courts due to their defective vehicles. The value of claims under the lawsuits has been estimated to reach about $4 billion, reflecting an average loss of $600 per vehicle.
The U.S. government has also imposed the highest-ever fine of $16.4 million on Toyota, accusing it of a deliberate delay in recalling the vehicles by hiding its flaws even though manufacturers are legally obligated to notify the U.S. safety regulators within five business days once they come to know of a safety defect.
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