Toyota Motor Corporation (TM) has announced a global recall of 20,000 vehicles equipped with its 2GR-FE V-6 engines. According to the company, the supplier may not have properly welded the end cap on the right-hand fuel delivery pipe in the engine compartment of these vehicles.
This glitch could lead to fuel leakage from the fuel delivery pipe, resulting in fire. The cars covered in the recall are Avalon, Camry, Highlander and Sienna vehicles of model year 2014 and Lexus RX SUV of model year 2015 that have been fitted with a 2GR-FE V-6 engine. A majority of the recalled vehicles are in the U.S., while some are in South Korea, Russia, Australia, Asia and the Middle East.
Toyota did not receive any report of fire, accident or injury due to the problem. However, the company will notify all the owners through the new federally mandated recall envelope. Dealers will then inspect and replace the fuel delivery pipe if it is found to be manufactured by the supplier responsible for the improper welding.
Auto recalls are becoming a major problem for vehicle owners. This year, auto manufacturers have recalled nearly 46 million vehicles, while multiple recalls are still being announced almost every week. The figure is a record high for any year by a huge margin.
Currently, Toyota sports a Zacks Rank #3 (Hold). Better-ranked auto stocks worth considering in the same sector include Tesla Motors, Inc. (TSLA), Nissan Motor Co. Ltd. (NSANY) and Tata Motors Limited (TTM). All these stocks have a Zacks Rank #1 (Strong Buy).
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