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Will Toyota Prius Be Recalled This Week?

Toyota Prius was supposed to be the hybrid car of the millennium and it had managed to get a lot of good press in the past few months. However, as of today, some 270,000 Toyota Prius cars are likely to be recalled to fix an issue with the braking system of the car that can possbily cause instances of brake failures, leading to safety risk for drivers. It is not sure as to how Toyota will recover from this onslaught because it has already been reeling under immense pressure due to an earlier recall notice that affected 2.3 million vehicles.

Toyota’s first recall notice happened due to accelerator pedal issues and it was issued on 21st January. The latest issue has happened with the anti-lock braking system of Toyota Prius 2010. Most of the model has been sold in Japan and the US. After receiving complaints of delayed-braking, the Japanese Government asked Toyota to investigate the complaints. Based on the initial investigation, it was found that the brakes have some sort of a software problem.

Toyota Prius’s brake glitch seems to be a software problem and currently impacts the 320,000 Prius cars that been sold this year. Most of these cars have been sold in Japan and the US, and hence a recall is expected to be announced sometime this week or possible next week. While Toyota is already reeling under the recall of 2.3 million vehicles that had to be recalled due to the accelerator pedal problems, the latest glitch is going to further dent the brand and reputation of Toyota.

While Toyota has lost its reputation like anything, the recalls have hurt the business of the company. It has lost market capitalization worth $33 Billion and the stock has tumbled by 22% since 21st January when the first recall notice was issued. On top of this, there are 29 lawsuits that have been filed in various Courts of the US & Canada that claim damages from Toyota. And the recalls are expected to dent the company’s revenue by $1.1 Billion.

The financial figures of Toyota are badly bruised. But it has to also calculate the loss that it will make over the next few years due to low customer confidence and a complete trust deficit. It will be difficult for Toyota to win back its loyal customers because the problems seem to indicate a macro-level problem with the Toyota’s manufacturing or research process. For now the company is still trying to find answers and ways to try and recover from the damage inflicted by the recalls of millions of cars across the automotive world.

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