Toyota venture recalls 259,119 Camry sedans
Guangzhou Toyota, the joint venture between Toyota Motor Corp and Guangzhou Automotive Industry Corp, will recall 259,119 Camry cars made between 2006 and last year on the mainland because of problems with the brake system.
The joint venture started selling Camry, priced at about 200,000 yuan (HK$226,950) to 250,000 yuan each, on the mainland in 2006.
The recall is the second-biggest on the mainland after Honda Motor's recall of 528,000 Accord, Fit compact and Odyssey minivan units in 2007 due to power-steering flaws.
Camry is one of the top 10 bestsellers in the country, according to the China Association of Automobile Manufacturers.
'In the short run, the media will keep discussing this issue,' said analyst Chen Qiaoning at ABN Amro Teda Fund Management.
'But that won't hurt the reputation of Toyota's Camry in the Chinese market.'
Toyota's sales on the mainland jumped 62 per cent in 2007 to 499,000 units, driven by the brisk demand for Camry.
The carmaker sold 17 per cent more vehicles in the country last year to about 585,000 units.
In a statement issued on Wednesday night, Guangzhou Toyota said it was complying with rules by the General Administration of Quality Supervision, Inspection and Quarantine in the Camry recall.
Apart from Japanese carmakers Toyota and Honda, General Motors Corp, Ford Motor, Hyundai Motor and BMW have also had recalls on the mainland.
'No matter how strict the carmaker's [quality control] is, it's difficult to guarantee 100 per cent of the parts supplies are without problems,' said Mr Chen.
