Toyota Worldwide Production Down, Recalls 57000 Vehicles On Faulty Airbags

(RTTNews) - Toyota Motor Corp. (TM, TYT.L) Thursday announced 1.1 percent decline in worldwide production for October, as there was a sharp decline in production of passenger cars in Japan. Production outside Japan improved 2.3 percent.

In a separate announcement, the Japanese automaker said it will recall more than 57,000 vehicles globally, for possible air bag defects. Most of the recalled vehicles are Vitz subcompacts, Yaris and RAV4 crossover models manufactured during December 2002 and March 2004. The recall is based on incidents of driver's side airbag exploding and that too with a spray of metal fragments.

Last day, the US federal safety regulators has asked the Japanese automotive parts maker Takata Corp. to initiate a nationwide recall. Toyota and Honda are reportedly using this brand of airbags in their vehicles. The U.S. National Highway Traffic Safety Administration has given Takata a deadline until Tuesday for a nationwide recall or pay fine of up to $7,000 per vehicle.

The issue of airbag rupture was first reported in 2008 and reportedly more than 16 million vehicles are recalled since then. Five deaths have been linked to faulty airbags around the globe.

According to Toyota, total production in Japan was down 6.4 percent to 271,285. Daihatsu production declined 7.8 percent, however Hino recorded 7.2 percent growth in October. Total production outside Japan climbed 2.3 percent to 558,421 units.

Total sales in Japan was down 5.2 percent at 174,164, with passenger cars contributing 7.9 percent fall. Trucks and buses segment sales were up 8.6 percent in Japan. Sales for Toyota brand in Japan was down 9.4 percent at 122,022.

For the January to October period, total production in Japan was down 1.8 percent at 3,563,448 and production outside Japan increased 5.3 percent to 5,075,378 units. Worldwide production grew 2.3 percent to 8,638,826. Though sales in Japan was up 1.3 percent at 1,960,291, exports for the period was down 7.1 percent.

In October 2013, the Japanese car maker had recorded 16.1 percent growth in worldwide production to 913,973 units.

TM closed on Wednesday at $121.70.