Toyota recall is the latest in a long line, says Eversheds' Shervington
Peter Shervington, expert in product liability at Eversheds, has commented on the news that Toyota is recalling 6.4 million of its range, including 35,124 in the UK, over five separate issues.
Shervington said: ‘For any manufacturer, undertaking a consumer recall is a major step — the direct costs of contacting vehicle owners, disseminating information through dealer networks and informing regulatory authorities around the world are substantial. In the long run, the impact on brand image, morale and investor confidence can be very much greater.
He added that this is another in a ‘long line of high-profile recalls that Toyota has had to undertake since the notorious floormat/hybrid system issues that sparked three recalls in quick succession in 2009 and 2010’, and that each announcement ‘puts another dent’ in Toyota’s efforts to recover its reputation
‘That no injuries or fatalities have been reported to date will be of little comfort to Toyota, particularly given the safety-critical nature of some of the aspects involved — not least airbag functionality and the fact that fires have been reported in connection with the starter motor problem,’ said Shervington.
‘No doubt serious questions are being asked within Toyota, its dealer network and among the regulatory authorities as to how further safety risks have slipped through the net.’
News from Eversheds
News from The Lawyer
Briefings from Eversheds
The EU Commission has imposed a fine of €20m on Marine Harvest for failing to notify the commission of its acquisition of de facto sole control over Morpol ASA.
The government has launched a consultation on stamp duty land tax rules for property authorised investment funds and co-ownership authorised contractual schemes.
Analysis from The Lawyer
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions
‘Exotic’ investors and opportunities for legal work beyond M&A feature in The Lawyer’s high-level roundtable debate on south-east Europe