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Toyota shares fall as car maker recalls 2.4 million hybrid vehicles

Toyota shares closed in the red Friday, as the Japanese car giant has issued a recall for some 2.4 million hybrid vehicles, due to a fault that could cause them to lose power. The vehicles affected by the recall are Prius and Auris models manufactured between October 2008 and November 2014.

Toyota shares ended the Friday Asian trading session 0.04% lower at JPY7,002. The stock has been broadly higher in recent weeks.

Toyota hybrid vehicle recall

Toyota said earlier Friday that the recall is a worldwide one, to allow it to rectify a fault that has been discovered. However, it added that it is not aware of any actual accidents that have occurred due to the problem.

Toyota did say, though, that in “rare situations” the fault that has been found could cause the vehicles in question to stall when they enter the “failsafe” driving mode.

“While power steering and braking would remain operational, a vehicle stall while driving at higher speeds could increase the risk of a crash,” Toyota said in a statement.

This recall is the third for hybrid vehicles produced by the Japanese car maker during that time. Previous faults were discovered in 2014 and also 2015.

Toyota, Softbank deal

The recall news comes just one day after Toyota and Softbank agreed a self-driving services deal. The two well-known firms have agreed a tie-up on the developments of autonomous services, where self-driving tech can be used for mobile shops, hospitals and other potential services.

Monet technologies corporation is set to be established by April 2019 and will bring together:

  • Toyota's Mobility Services Platform.
  • Toyota's information infrastructure for connected vehicles.
  • SoftBank's Internet of Things Platform.

“When we were a company that focused only on manufacturing cars, we were unable to work together with SoftBank,” Toyota’s President, Akoi Toyoda. “Twenty years on, as we aim to become a mobility company, this partnership is indispensable.”

“We see SoftBank's strengths as its ability to judge based on foresight and their expertise in reading the seeds of the future” Toyoda said in a speech announcing the joint venture between the two firms.

About the author

Ilona Billington
Ilona is a freelance writer and editor with over 15 years experience reporting and writing about UK and European economics, real estate, financial markets and central banks.

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