Toyota is investigating if its vehicles involved in an undisclosed number of fatal accidents in China during the first half of 2011 were faulty.
Its Camry, Reiz [Chinese Mark X] and Prado [Landcruiser Colorado] were among models alleged by China’s General Administration of Quality Supervision, Inspection and Quarantine to have faulty brakes and driveshafts.
In 2006, Toyota recalled some Prado models to repair faulty drive shafts.
The news late last week led briefly to a flurry of sales of Toyota shares as investors recalled the 2009 and 2010 recalls of millions of vehicles after ‘sudden acceleration’ incidents.
“Investors sold Toyota [shares]… because the China report reminded them of Toyota’s problems in the US two years ago,” said Masayoshi Okamoto, head of dealing at Jujiya Securities.
“But the reports [were] unclear and there were no further developments so some investors bought back the company’s shares.”