Eversheds comment: Toyota recall the latest in a long line

• United Kingdom

09-04-2014

Commenting on news that Toyota is recalling 6.4 million of its range, including 35,124 in the UK, over five separate issues, Peter Shervington, expert in 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.

“This is yet another 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, and follows concerns over electronic systems which triggered a recall of 1.3 million vehicles earlier this year. Of 22 million vehicles recalled in the US last year, more than 5 million were Toyotas. 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.

“That no injuries or fatalities have been reported to date will be of little comfort to Toyota, particularly given the safety critical nature of some of the aspects involved – not least airbag functionality, and the fact that fires have been reported in connection with the starter motor problem. 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.”

• Peter Shervington
• Principal Associate
• +44 113 200 4043
• +44 113 200 4043

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