It seems like years since Toyota Motor Corp. (NYSE: TM) had a series of recalls of millions of cars, which forced CEO Akia Toyoda to appear before Congress to defend the safety standards of the company founded by his grandfather. Actually, it was three years ago. And Toyota’s reputation has been undermined again. The world’s second-largest auto manufacturer announced it would recall 760,000 RAV4 SUVs. The problem with the vehicle could be severe. The company said in a press release:
Toyota has determined that if the nuts on the rear suspension arm are not tightened following the proper procedure and torque specification during a rear wheel alignment service, excessive play may occur at the threaded portion of the arm, followed by rust formation. If this were to occur, the threaded portion of the rear suspension arm may wear and cause the arm to separate.
Toyota is currently developing a remedy. Once the remedy is available, we will send a notification letter by first class mail advising owners to make an appointment with an authorized Toyota or Lexus dealer to have the remedy performed at no charge.
Douglas A. McIntyre