Eversheds comment: Latest Toyota recall underlines crucial importance of electronic systems integrity

• United Kingdom

12-02-2014

Commenting on news that Toyota is recalling 1.9 million of its top-selling Prius hybrid cars because of a software fault, Richard Matthews, head of Product Liability at global law firm Eversheds, says:

"For any manufacturer, undertaking a consumer recall is a major step – the direct costs of contacting vehicle owners, disseminating information through dealer networks and informing regulatory authorities around the world are substantial. In the long run the impact on brand image, morale and investor confidence can be very much greater.

“Vehicle recalls are an everyday occurrence, and against the context of 15.5 million vehicle recalls in the US each year, this latest announcement by Toyota may not appear significant. However, this is the latest in a long line of high profile recalls which Toyota has had to undertake since the notorious floormat/hybrid system issues which sparked three recalls in quick succession in 2009 and 2010. Each announcement puts another dent in Toyota’s efforts to recover its reputation and resurrects questions about the impact of its strategy of rapid expansion on previously enviable standards of design and production quality.

“Toyota has acknowledged that the software error could potentially result in the vehicle shutting down and stopping whilst being driven – a point which underlines the critical importance for manufacturers of ensuring the integrity of increasingly complex electronic systems on which their products depend. No doubt serious questions are being asked within Toyota, its dealer network, and amongst the regulatory authorities, as to how further safety risks have slipped through the net.”

• Richard Matthews
• Partner
• +44 113 200 4372
• +44 113 200 4372

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