Toyota Recalls Hybrid Vehicles Due to Brake Defect (TM)
Shares of automobile company, Toyota Motor Corporation (TM) dropped on Wednesday morning following reports that the company will be recalling a quarter million hybrid vehicles due to defective brakes.
The company received more than 90 complaints from drivers of Prius and Lexus hybrid cars and will now recall about 242,000 vehicles. The glitch in the vehicles allows nitrogen gas to leak into the brake fluid which makes the brakes less effective. There have been no reports of deaths or injuries related to this defect.
The majority of recalls will be in Japan, where 117,000 cars are being recalled. There are 91,000 vehicles being recalled in North America and 30,000 in Europe.
The recall will include the Prius that was manufactured between March and October 2009 and the Lexus HS 250h manufactured between June and October 2009.
Toyota shares were down -$2.76, or -2.33% during premarket trading Wednesday. The stock is up 27% YTD.
The Bottom Line
Shares of Toyota Motor Corporation (TM) have a 1.23% yield, based on Tuesday’s closing price of $118.26.
Toyota Motor Corporation (TM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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