Toyota Recalls 1.85 Million RAV4 SUVs Due to Potential Fire Risks
Toyota, the world’s largest automaker, has announced a recall of 1.85 million RAV4 SUVs (2013-2018 models) due to potential fire risks. The issue stems from small-top replacement 12-volt batteries that are incorrectly sized and could move during forceful turns if not properly secured by the hold-down clamp. This could potentially lead to a short circuit and subsequent fire.
Toyota will notify affected owners by late December and provide free replacements of the hold-down clamp, battery tray, and positive terminal cover at dealerships. To check if your vehicle is affected, you can visit the National Highway Traffic Safety Administration website or Toyota’s website and enter your vehicle identification number.
This recall comes just a week after another one involving 814,000 Highlander SUVs with a front bumper detachment issue. These back-to-back recalls demonstrate Toyota’s commitment to ensuring customer safety and maintaining rigorous standards.
Despite these recent recalls, Toyota has shown impressive financial performance. The company has a market cap of 251.57 billion USD and a low P/E ratio of 12.59, indicating that it is trading at a low P/E ratio relative to near-term earnings growth. Toyota’s revenue growth has been accelerating, with a 22.78% increase in the last twelve months as of Q1 2024.
Toyota has a strong track record of dividend payments, having maintained them for 44 consecutive years. This reflects the company’s financial stability and has contributed to investor confidence. However, it’s important to note that Toyota’s total debt has increased for consecutive years, which potential investors should consider.
Take Action: Check Your Vehicle’s Recall Status
If you own a Toyota RAV4 SUV between 2013 and 2018, it is crucial to check if your vehicle is affected by this recall. Visit the National Highway Traffic Safety Administration website or Toyota’s website and enter your vehicle identification number to check your recall status. It’s important to prioritize your safety and take the necessary steps to address any potential risks.
About Toyota and InvestingPro Insights
Toyota RAV4 SUVs have been the top-selling SUV in the United States for nine consecutive years, highlighting their popularity and trust among consumers. Toyota is a prominent player in the Automobiles industry and has shown impressive financial performance. The company’s stock is currently trading near its 52-week high, reflecting investor confidence. However, it’s important to consider that Toyota’s total debt has been increasing for consecutive years, which may impact its long-term financial stability.