Toyota, Subaru shares drop after EV recall announcements
2022.06.24 05:15
FILE PHOTO: The Toyota logo is seen at its booth during a media day for the Auto Shanghai show in Shanghai, China April 19, 2021. REUTERS/Aly Song/File Photo/File Photo
(Reuters) – Shares of Toyota Motor (NYSE:TM) Corp and Subaru (OTC:FUJHY) Corp dropped on Friday after the two Japanese car makers announced recalls of their first mass-produced electric vehicles (EV) for the global market because of a risk the wheels could come loose.
The recall by Toyota of 2,700 units of the bZ4X SUVs, rolled out less than two months ago in Japan, is a setback to the world’s largest automaker by sales, as it seeks to take on larger EV rival Tesla (NASDAQ:TSLA) Inc.
A Toyota spokesperson said on Thursday not every model was subjected to the recall but declined to say how many it has built overall.
Subaru also said it was recalling about 2,600 units of the Solterra, its first all-electric vehicle jointly developed with Toyota, globally.
Japan’s safety regulator said sharp turns and sudden braking could cause a hub bolt to loosen, raising the risk of a wheel coming off the vehicle. It said it was not aware of any accidents being caused by the defect.
Subaru shares slumped nearly 5% and Toyota’s were down 1.6%.
