Toyota and Mazda Form Partnership, Expand Global Recall

Strategic Insights -

Toyota and Mazda have announced a long-term partnership to further develop each other's products and technologies, with a joint committee evaluating ways to utilize each company's strengths. Meanwhile, Toyota is expanding a global recall of vehicles equipped with faulty airbags made by Takata Corp., affecting approximately 160,000 RAV4 SUVs, 177,000 Tundra and Sequoia vehicles, and 300,000 vehicles built through the 2006 or 2007 model year. The recall brings the number of vehicles recalled to approximately 31 million, comparable to General Motors' recall of 30 million vehicles in 2014. Honda Motor Co. has also been impacted, but has not provided specific details on the new recall.

Key Takeaways:

  • Toyota and Mazda have formed a long-term partnership to develop each other's products and technologies, with a joint committee evaluating ways to utilize each company's strengths.
  • Toyota is expanding a global recall of vehicles equipped with faulty airbags made by Takata Corp., affecting approximately 160,000 RAV4 SUVs, 177,000 Tundra and Sequoia vehicles, and 300,000 vehicles built through the 2006 or 2007 model year.
  • The recall brings the number of vehicles recalled to approximately 31 million, comparable to General Motors' recall of 30 million vehicles in 2014.
  • Honda Motor Co. has also been impacted, but has not provided specific details on the new recall.
  • Toyota's stock price was down three cents in recent morning trade, moving in the upper half of the 52-week range of $107.59 to $145.80.
  • Honda's stock price was up over 1%, moving closer to the top end of the 52-week range of $28.61 to $36.44.

Statistics:

  • 160,000 RAV4 SUVs recalled
  • 177,000 Tundra and Sequoia vehicles recalled
  • 300,000 vehicles built through the 2006 or 2007 model year recalled
  • 31 million vehicles recalled in total
  • 30 million vehicles recalled by General Motors in 2014
  • -0.19 price change for Toyota stock
  • -0.14% percent change for Toyota stock
  • 1% price increase for Honda stock
  • 28.61 to 36.44 52-week range for Honda Motor Co.

Sources:

  • Toyota press release
  • Reuters
  • MidnightTrader.com
  • Comtex SmarTrend Alert (for Honda Motor Co.)
  • Comtex SmarTrend Alert (for Toyota Motor Corp.)