Vehicle recalls are always unpleasant ordeals. When the issued recall notices encompass millions of vehicles, they turn from simply unpleasant to downright ugly.
Ford Motor Company (NYSE:F, F message board) recalled 8 million cars back in 1996. Yesterday Toyota Motor Corporation (NYSE:TM) announced that it will be recalling an equally gargantuan 7.4 million vehicles from locations all over the world – the closest match to Ford's record recall. Toyota's latest recall includes nearly 2.5 million units sold in the U.S., some 1.4 million in China and almost 1.4 million in Europe. The recalled models include the Yaris, Corolla, Camry, RAV4 and Highlander, among others, and are produced in the span between 2005 and 2010.
Ford's August recalls of 12,000 Escapes and 140,000 Figo and Classic cars pales in comparison to the huge number of vehicles Toyota wants back for repairs. Yet, the issue with Toyota's cars is much less significant compared to Ford's problematic fuel lines and rear beams. The Japanese automaker is recalling its 7.4 million cars for an issue as simple as a faulty driver window switch. Uneven distribution of grease on the component can cause the excessive friction, choppy movement and potentially - smoke, Toyota said. Despite the relatively minor issue, Toyota warned against the use of 'commercially available lubricants' as those could melt the switch assembly.
Toyota are also in a pinch in the Chinese markets, as local customers reportedly avoid purchasing Japanese-made cars as a reaction to a land dispute over islands, claimed by China, Taiwan and Japan. This is good news for Ford who reported year-over-year growth of 35% in September sales for China.
Both companies closed down a notch, Ford going under the $10 mark and settling at $9.98 per share.
IMPORTANT FORD UPDATE: October 11th 2012 - F is making a chart pattern that has been seen 3,826 times since the year 2000. 55.51% of the stocks that have made this pattern went up over 8% on average in a 20 day period. Watch the video to learn more about the probabilities of F stock moving up or down.
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