Toyota Recall

GM Recalls Aveo in China

General Motors Company’s (GM – Analyst Report) joint venture with Shanghai Automotive Industry Corporation (SAIC), Shanghai GM, will recall 47,415 units of Chevrolet Aveo cars in order to fix their faulty brake fluid sensors. The cars belong to the model year 2012.

The General Administration of Quality Supervision, Inspection and Quarantine revealed that it is a supplier’s fault. The defect could fail to alert drivers about low brake fluid levels. The company will fix the sensors free of charge.

This is the third vehicle safety recall of GM in China since December last year. Late December, Shanghai GM had recalled 9,862 units of 2011 Cadillac SRX model due to defective transmission systems.

Then, earlier in March, GM recalled 16,618 units of Chevrolet Captiva and Opel Antara crossover sports utility vehicles in China due to a problem with the antilock braking system in the vehicles. The recall involved vehicles that were manufactured between April 11, 2006, and November 9, 2009.

Automotive safety recalls were brought into focus by media after Toyota Motors’ (TM – Analyst Report) announcement of the largest-ever global recall of 3.8 million vehicles in September 2009, triggered by a high-speed crash that killed 4 members of a family.

Later on, a string of recalls has led Toyota to face numerous personal injury and wrongful death lawsuits in federal courts. The Transportation Department of U.S. also imposed a fine of $48.4 million on the company due to late recall of millions of defective vehicles.

Auto sales in China grew 5% to 1.62 million vehicles in April after recording a slack first quarter. However, sales in the first four months of the year slid 1.3% to 6.4 million vehicles owing to tighter credit policies and slower economic growth.

GM’s total sales in China grew 11.7% to 227,217 vehicles during the month. Shanghai GM sales went down 2.2% to 94,101 units while SAIC-GM-Wuling sales went up 27 % to 127,362 units.

GM, a Zacks #3 Rank (Hold) company, reported a $100 million fall in profits to $1.6 billion in the first quarter of 2012 from $1.7 billion in the same quarter of 2011, before special items, due to lower profits from its European operations.

On per share basis, adjusted profits were 93 cents during the quarter, down 2 cents from the first quarter of 2011. However, it exceeded the Zacks Consensus Estimate of 84 cents. Adjusted earnings before interest and taxes (EBIT) dipped to $2.2 billion in the quarter from $2.0 billion in the year-ago quarter.

Revenues in the quarter went up 4% to $37.8 billion on a 3% rise in unit sales to 2.3 million vehicles globally. It was higher than the Zacks Consensus Estimate of $36.4 billion. The automaker occupied a worldwide market share of 11.3% during the quarter, compared with 11.4% a year ago.

Read the full analyst report on TM

Read the full analyst report on GM

Article source: http://www.zacks.com/stock/news/75451/gm-recalls-aveo-in-china

Auto recall policy by year-end

SIAM bid to pre-empt move with ‘voluntary guidelines’ in June

By the end of this year, automakers may be mandated to officially announce vehicle recalls, if defects are detected after launch.

The Ministry of Heavy Industries expects to begin formal talks on regulations for the same next month with the Ministry of Road Transport Highways (MoRTH) and industry body, Society of Indian Automobile Manufacturers (SIAM).

“Till now, there have been informal discussions between SIAM and MoRTH. From next month, the Department of Heavy Industries expects to take a lead on formal talks for such a policy,” a senior bureaucrat told Business Line.

Such a policy would look to define what a recall means by stipulating the conditions and the process the manufacturer needs to follow after issues are detected in a certain production batch.

Manufacturers may be mandated to inform the Government of any such move, apart from issuing an official statement in the media.

VOLUNTARY RULES

Incidentally, SIAM plans to pre-empt the Government’s move by issuing its own set of ‘voluntary guidelines’ for vehicle recalls next month itself. A draft proposal is already ready, an official said.

Most developed markets have defined rules for recall. In the US, the National Highway Traffic Safety Administration can force a manufacturer to recall a model (or a certain batch), if safety standards are proved to have not been met after an investigation by the agency.

For environmental issues, the Environmental Protection Agency conducts a similar check.

An auto recall policy was also expected to be included in the amendment of the Motor Vehicle Act, 1988, which is currently in the works.

However, the Sundar Committee Review of last year had abstained from suggesting any official policy. Instead, it had recommended “punishment for offences relating to manufacturing of faulty vehicles” through imprisonment of up to three months and/or a fine of up to Rs 1 lakh.

PAST RECALLS

In April last year, Maruti Suzuki recalled 13,157 Swift, Ritz diesel models to inspect, fix engine defects, preceded by Honda Siel’s February 2011 recall of 57,853 units of the City.

In September last year, Honda again recalled 72,115 units of the City to replace defective power window switches.

Toyota Kirloskar had also announced recall of 41,000 units of its Etios and Liva models to replace a faulty inlet pipe to the fuel tank.

Meanwhile, Tata Motors’ had offered a free fix on 70,000 plus units of the Nano compact in November 2010, following incidents of fire. However, it abstained from calling it a ‘recall’.

The largest-ever recall in India probably was for the one lakh plus units of the A-Star in February 2010, the only competition coming again from Tata which asked 1.40 lakh Nano owners last year to bring back their cars for a change of the starter motor.

roudra.b@thehindu.co.in

Article source: http://www.thehindubusinessline.com/companies/article3433149.ece

2013 Lexus GS F Sport Recalled

Related Content

Article source: http://www.insideline.com/lexus/gs-350/2013/2013-lexus-gs-f-sport-recalled.html

Recall roundup: 2013 Lexus GS 350 F Sport

Toyota’s luxury brand Lexus has recently announced a recall for the 2013 GS 350 F Sport because of a problem with its steering.

According to the National Highway Traffic Safety Administration, approximately 650 units of the 2013 Lexus GS 350 F Sport will be affected by this recall and owners of the model will have to drive it back to the dealer, which will update the Variable Gear Ratio (VGRS) and the ECU of the affected vehicles. The 2013 Lexus GS 350 F Sport has a steering defect which might affect the wheels but the company didn’t announce if any reports have been received from customers about potential accidents or injuries because of this problem.

Owners of the 2013 Lexus GS 350 F Sport will receive a safety recall notice at the beginning of June, 2012, and they will have to take the vehicles to the dealers. The repair is expected to take 30 minutes. If you own a 2013 Lexus GS 350 F Sport we encourage you to contact the car manufacturer at 1-800-255-3987 or the National Highway Traffic Safety Administration Hotline at the 1-888-327-4236.

As a quick reminder, the model in question is being powered by a 3.5 liter six-cylinder engine with direct injection, which is developing a total output of 306 HP and it has a peak torque of 277 lb-ft. The vehicle can accelerate from 0 to 60 mph in 5.7 seconds before reaching a top speed of 144 mph. The 2013 Lexus GS 350 F Sport is available with a six-speed sequential-shift automatic transmission, which is sending power to either the rear wheels or the all-wheel drive system.

Article source: http://www.inautonews.com/recall-roundup-2013-lexus-gs-350-f-sport

Recall Alert: 2012 Ford F-150

Recall Alert: 2012 Ford F-150

Ford is recalling 101 model-year 2012 versions of its F-150 pickup truck due to problems with the passenger-side airbag’s occupancy classification software, according to the National Highway Traffic Safety Administration.

The affected vehicles were built from Nov. 6 through Nov. 15, 2011, and use software that could misclassify the size of the front-seat passenger, preventing the airbag from deploying or deploying unnecessarily. This could lead to an increased risk of injury to the front passenger. You can check your vehicle’s build date on a sticker on the driver-side doorjamb.

Ford will notify owners starting May 21, and dealers will replace the affected parts free of charge. Owners can call Ford at 866-436-7332 or NHTSA’s vehicle safety hotline at 888-327-4236 for more info.

Article source: http://news.pickuptrucks.com/2012/05/recall-alert-2012-ford-f-150.html

Toyota on smooth course after hitting potholes

By Jim Woods

Given the potholes placed in Toyota’s path in recent years, you might think the company and its stock should just be parked and forgotten about. Of course, if you did that now, you’d be making a wrong turn.

To be sure, during the past several years, a lot of obstacles have marred the road for Japanese auto giant Toyota Motor Corp. (TM). First came the economic crisis of 2008, which stalled the entire auto market — so much so that rival General Motors (GM) drove itself into bankruptcy. Then Toyota was slapped by a recall scare over so-called “unintended acceleration” in some of its models.

Toyota’s real problems, however, came courtesy of Mother Nature. Last year’s devastating earthquake/tsunami/n​<!–uclear disaster in Japan nearly decimated the company’s production lines. To make matters worse, horrific flooding in Thailand shut down many of Toyota’s electronic components suppliers. Then on top of all that, the value of the yen began to rise vs. rival foreign currencies, and that also weighed on Toyota’s profits.

So far in 2012, TM shares have surged more than 18%. That’s double the outstanding gain experienced by rival Japanese automaker Honda (NYSE:HMC), which has seen its shares rise about 9% year-to-date. GM shares have climbed a much more modest 6%, and Ford (NYSE:F) actually has seen its stock decline nearly 4%.

Perhaps the biggest positive going forward for Toyota came with its release of fiscal fourth-quarter earnings. For the quarter ended March 31, the company reported earnings of ¥121 billion, or $1.52 billion, which is nearly a five-fold increase from a year earlier when it earned just ¥24.5 billion. More importantly, this was the first quarter since fall 2010 where we’ve seen a year-over-year increase in earnings.

Toyota also said it expects earnings in the current fiscal year to come in at ¥760 billion, or $9.55 billion, up from the ¥283.5 billion it earned in the prior year. By comparison, GM is expected to earn about $7.8 billion this year.

Of course, it’s pretty easy for Toyota to outdo itself compared to last year, especially given the problems that hampered the company in 2011. The real test for Toyota going forward will be if it can best its rivals in terms of capturing market share, and if it can increase sales of its flagship Camry and Prius brands.

So far, Toyota is accelerating on both of these fronts. Although its newly designed Camry model was panned by automotive critics, buyers have embraced the brand once again. The new Camry, which features several technology enhancements and better gas mileage, has been a big hit with U.S. buyers. As for the Prius, Toyota has introduced several new models of its popular hybrid brand, such as the larger Prius V, and the smaller, more affordable, Prius C. The company already has seen strong early sales for both models, and that has led to a big boost in U.S. sales of the premier hybrid brand.

According to Toyota Motor Sales USA, domestic sales rose 11.6% in April vs. a year ago, with Camry sales up 36.1%. The newly enhanced Prius line saw a spike in sales of 126.9%. If sales metrics continue improving like this — and if buyers keep showing a willingness to get behind the wheel of a new Toyota — then the company likely will look back on the period between 2008 and 2011 as just a bad memory.

In fact, Akio Toyoda, chief executive at Toyota and the grandson of the company founder, acknowledged as much in his prepared remarks accompanying the latest earnings release, saying, “In recent years, we have suffered periods of hardship. This year, I am determined to show tangible results of all our internal efforts in order to reward our stakeholders who supported us during these difficult times.”

If the Toyota chief makes good on his pledge, TM shares could deliver big time.

As of this writing, Jim Woods did not hold a position in any of the aforementioned securities.

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Automobiles & Parts

Three years ago when he began covering the automobiles and parts sector, Shin Chung-Kwan, a senior analyst at KB Investment Securities Co., expected Hyundai Motor Group’s design makeover and Japan’s Toyota Motor Corp.’s massive recall to offer a long-term upside momentum for the sector in South Korea.

“Vehicle sales in the U.S. and emerging markets have continued to rise since 2010 and Hyundai (Motor Group) has absorbed some of the demand on the back of its improved quality and brand image,” said …

Article source: http://online.wsj.com/article/SB10001424052702304746604577381222128562672.html?mod=googlenews_wsj

Toyota’s resurgence hinges on reworking ties with parts suppliers

TOKYO (Kyodo) — Having been battered by the yen’s historic ascent against the dollar and the adverse impact of the Great East Japan Earthquake, Toyota Motor Corp. suffered drops in both consolidated revenue and earnings in the year that ended March 2012.

Toyota Motor also lagged behind its rivals both domestic and foreign in penetrating emerging markets such as China. It slipped to No. 4 among all the world’s carmakers in the number of cars sold, having held the top spot in 2008.

In the current year through March 2013, the Japanese automaker is expecting a strong recovery but its revival appears to hinge on whether it can implement structural reforms that involve revamping its relations with subcontractors in Japan.

At a news conference on May 9 for the earnings announcement, President Akio Toyoda vowed the firm would emerge from a long period of struggle. “After three years of spadework, we will this year release a series of appealing products in both industrial and emerging markets,” he said.

Toyoda, a member of the automaker’s founding family, took the helm in 2009 when the global economy was still feeling aftershocks from the financial crisis of the previous year.

Toyota Motor under his reign has experienced a series of hardships such as a massive recall of cars over an axel pedal problem in the United States that severely tarnished its otherwise strong brand image, as well as last year’s Great East Japan Earthquake followed by flooding in Thailand, one of its key production bases.

In the meantime, automotive sales hardly expanded in industrial economies but grew rapidly in China and Brazil. Germany’s Volkwagen AG and South Korea’s Hyundai Motor Co. responded swiftly to structural changes in these expanding markets.

A top official at Toyota Motor admitted that it has been left in a difficult situation. Toyota Motor is being “forced to fight an uphill battle in the global market,” he said.

Toyota Motor has often been cited as a typical example of a company practicing the so-called Japanese style of management with a particular focus on domestic production and tight relations with components manufacturers.

But some are now questioning whether this “focus” has morphed into a drag on earnings.

The rapid ascent of the Japanese currency against the dollar has far outpaced Toyota Motor’s specialty of rigorous cost cutting efforts. Some analysts said Toyota Motor has been slow in implementing structural reform.

Toyota Motor’s answer to such criticism is a new strategy dubbed “Toyota New Global Architecture.” It aims to spare no efforts in promoting common use of components across different model platforms to take advantage of economies of scale in achieving substantial cost reduction.

The conventional focus on relations with affiliated parts makers is no longer a given for Toyota Motor. The company is keen on procuring components from overseas manufacturers as well in order to “enhance product competitiveness and cost reductions at the same time,” Executive Vice President Takeshi Uchiyamada said.

Parts makers in Japan who have been supporting Toyota Motor, however, are getting apprehensive. While they themselves can expect a larger volume of orders if they are more competitive than others, they also stand the chance of losing contracts if they turn out to be less competitive.

The president of a midsize parts maker affiliated with Toyota Motor said, “We can no longer count on the conventional business relationship. It’s now a match with international competitors.”

Nissan Motor Co. has already done away with the traditional Japanese style of keeping close ties with affiliated parts suppliers.

Under the leadership of Chief Executive Officer Carlos Ghosn, Nissan Motor has formed strategic partnerships with manufacturers worldwide and is providing products catering to each market.

Just earlier this month, Nissan Motor and its business alliance partner Renault SA of France decided to buy a controlling stake in Russia’s largest carmaker Avtovaz.

In 2011, the Renault-Nissan alliance sold a total of 8.02 million cars, outnumbering Toyota Motor with 7.95 million. Nissan Motor also outperformed Toyota Motor in consolidated net profit in fiscal 2011, which ended in March 2012. Nissan Motor was the best-performing Japanese automaker with 341 billion yen in net profit, compared with 284 billion yen for Toyota Motor.

Satoshi Nagashima, senior partner at consulting firm Roland Berger, said, “At Nissan Motor, things move quickly in management. It has turned out to be an advantage that it severed relations with parts makers early.”

More than any other Japanese company, Toyota Motor had been particular about maintaining its core operating bases in Japan. But exposed to intensifying competition around the world and the strong yen, it has now started steering away from its traditional stand to follow a rival.

Article source: http://mainichi.jp/english/english/newsselect/news/20120512p2g00m0bu084000c.html

Ford Recalls Windstars from Virginia

Ford Motor Co. (F – Analyst Report) will recall 27,000 units of Windstar minivans from Virginia, which is a part of the company’s larger recall of more than 600,000 minivans in the U.S. and Canada in 23 states on August 2010. The Windstars are either sold or registered in Virginia.

The vehicles belong to the model year 1998 through 2003 and were manufactured at Ford’s Oakville, Ontario plant from September 1, 1997 through July 3, 2003. The defect was caused by salt that can cause the axles to rust, crack and even break, leading to loss of vehicle control.

Ford has decided to recall the additional Windstars after receiving 11 reports of axle cracks from Virginia between October 2011 and March 2012. However, the Detroit automaker has not yet received any reports of crashes or injuries in Virginia due to the problem.

Ford will either replace the axles or install brackets to fix them. The company will start sending letters to the vehicle owners in Virginia starting the week of June 18.

According to Ford representative Daniel Pierce, about 60% of the vans in the 2010 recall have been brought in for repairs. Meanwhile, some vans have been scrapped and others were not repaired. He also added that the company received reports of 8 crashes and 3 injuries related to the original recall.

Automotive safety recalls were brought into focus by media after Toyota Motors’ (TM – Analyst Report) announcement of the largest-ever global recall of 3.8 million vehicles in September 2009, triggered by a high-speed crash that killed 4 members of a family.

Later on, a string of recalls has led Toyota to face numerous personal injury and wrongful death lawsuits in federal courts. The Transportation Department of U.S. also imposed a fine of $48.4 million on the company due to late recall of millions of defective vehicles.

Ford, a Zacks #3 Rank (Hold) stock, posted a sharp 20% fall in profits to $1.6 billion in the first quarter of the year from $2.0 billion in the same quarter of 2011. On per share basis, profits ebbed 17% to 39 cents from 47 cents in the first quarter of 2011. Nevertheless, it was higher than the Zacks Consensus Estimate of 35 cents.

The automaker has attributed the decrease in profits to higher tax expense, lower operating results and higher charges emanating from buyouts of hourly workers in the U.S. as part of its UAW agreement in 2011.

The company’s profits drastically fell in all its operating regions, except North America. In fact, it recorded a loss in Europe and Asia Pacific Africa compared with a profit in the comparable quarter of 2011.

Total revenue in the quarter slipped 2% to $32.4 billion, barely surpassing the Zacks Consensus Estimate of $32.0 billion. The fall in revenues was attributable to lower wholesale volumes in Europe and Asia, partially offset by higher volumes in North America and South America.

Read the full analyst report on F

Read the full analyst report on TM

Article source: http://www.zacks.com/stock/news/75006/ford-recalls-windstars-from-virginia

Company recalls Nebraska lethal injection drug

By GRANT SCHULTE
Associated Press

LINCOLN, Neb. (AP) – A Swiss pharmaceutical company has issued a voluntary recall of a lethal injection drug held by Nebraska, but state officials said Wednesday they won’t return the drug and the U.S. Food and Drug Administration says it won’t enforce the company’s decision.

Naari AG asked Nebraska officials to quarantine its supply of sodium thiopental and return it to the company or the FDA. The company said in a recall letter that the product was “illegally diverted from the company’s supply chain” and has been outside of the company’s control.

“Therefore, as a precautionary measure, the company is recalling” the batch of drugs in Nebraska’s possession, the company said in the letter.

Nebraska’s first batch of the drug obtained from an India-based drug company in January 2011 was ruled to have been illegally imported. The state then obtained a new batch from another Indian source late last year, but the Swiss manufacturer of the drug, Naari AG, said that the sodium thiopental that Nebraska bought was a sample intended only to be used for evaluation purposes as an anesthetic in Zambia.

Nebraska state officials said they obtained the supply in a legitimate manner, and would not return it.

“All documents examined indicate our department received the sodium thiopental in a legitimate manner,” Nebraska Department of Corrections Director Robert Houston said in a statement. “NAARI has made their position clear; however, we do not feel a response to this recall notice is necessary or appropriate.”

FDA spokeswoman Shelly Burgess said her agency doesn’t enforce compliance with voluntary recalls initiated by companies.

Sodium thiopental has been in short supply since 2010, when the only U.S. manufacturer, Hospira Inc., ended production because of death penalty opposition from overseas customers. After that, the European Union banned the export of chemicals including sodium thiopental, which further diminished its availability as a lethal injection drug.

In March, a U.S. judge found the FDA wrongly allowed other states to import the drug. U.S. District Judge Richard Leon also ordered the federal agency to immediately notify any state correctional department with foreign-manufactured thiopental that its use is prohibited by law, and that the drug must be returned to the FDA.

The Nebraska attorney general’s office has refused a request from the FDA to turn over Nebraska’s batch of sodium thiopental. The attorney general instead suggested the FDA appeal the federal judge’s ruling.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Article source: http://www.wset.com/story/18246823/company-recalls-nebraska-lethal-injection-drug