© Reuters. FILE PHOTO: Toyota Logo Seen at Its Booth During Media Day for Shanghai Auto Show in Shanghai, China, April 19, 2021. REUTERS / Aly Song / File Photo / File Photo
(Reuters) – Shares of Toyota Motor (NYSE 🙂 Corp. and Subaru (OTC 🙂 Corp. gave up on Friday after two Japanese carmakers announced the withdrawal of their first mass-produced electric vehicles (EVs) to the global market due to the risk of the wheels loosening.
Toyota’s withdrawal of the 2,700 units of the bZ4X SUVs, introduced less than two months ago in Japan, is a setback for the world’s largest carmaker in terms of sales, as it seeks to fight Tesla’s larger EV rival (NASDAQ 🙂 Inc.
A Toyota spokesman said Thursday that not every model has been recalled, but declined to say how many in total it has produced.
Subaru also said it is pulling about 2,600 units of the Solterra, its first all-electric vehicle co-developed with Toyota, globally.
The Japanese safety regulator said sharp turns and sudden braking can cause the hub bolts to loosen, increasing the risk of the wheel landing off the vehicle. They stated that they were not aware of the accidents caused by the malfunction.
Shares of Subaru fell nearly 5% and Toyota 1.6%.