Toyota, Subaru shares drop on recalls of their first EV models

Tokyo, June 24 (BNA): Toyota Motor Corp (7203.T) and Subaru Corp (7270.T) shares fell on Friday after the two Japanese automakers announced the recall of their first mass-produced electric vehicles (EV) in favor of the car. The global market because of the risks that could liberate the wheels.

Toyota’s recall of 2,700 bZ4X SUVs, which were introduced less than two months ago in Japan, is a setback for the world’s largest automaker by sales, as it seeks to fend off its biggest electric rival Tesla Inc (TSLA.O), Reuters reported.

Not every model is subject to the recall, a Toyota spokesperson said Thursday, but declined to say how many models it made overall.

Subaru, in which Toyota owns nearly 20%, said it is recalling globally about 2,600 units of the Solterra, the first all-electric vehicle co-developed with its largest shareholder.

The Japanese safety regulator said sharp turns and sudden braking could cause the axle bolt to loosen, increasing the risk of a wheel slipping off the car. She added that she was not aware of any accidents resulting from the defect.

Subaru shares fell nearly 5 percent and Toyota shares fell 1.6 percent.

Toyota, once a favorite of environmentalists for its popular hybrid model, has been criticized for not acting fast enough to phase out gasoline cars and put pressure on climate policy.

The company has repeatedly countered criticism, arguing that a variety of engines must be offered to suit different markets and customers.

Gasoline-electric hybrids are still more popular in Toyota’s domestic market than electric cars, which accounted for just 1% of passenger cars sold in Japan last year, based on industry data.

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