Autoliv, Inc. (NYSE: ALV and SSE: ALIVsdb), the worldwide leader in automotive safety systems, is cooperating with Toyota in their voluntary recall of approximately 1.4 million vehicles of the Toyota Prius and Lexus CT200h.
Seven incidents involving the Toyota Prius have been reported where a side curtain airbag has partially inflated without a deployment signal being given by the airbag controller. In each of those incidents, the vehicles were parked and unoccupied, and there have been no reported injuries.
The root cause analysis of this issue is continuing. No incidents have been reported in any vehicles produced by the four other OEMs who used the same inflator, pointing to vehicle specific characteristics contributing to the issue in addition to a manufacturing issue. The inflator manufacturing process suspected of contributing to the issue was changed in January 2012 and the vehicles now recalled by Toyota represent approximately half of all such inflators manufactured until January 2012.
”For Autoliv, safety and quality are our priorities and we are fully committed to support Toyota’s action in resolving this issue, and will support Toyota in the implementation of solution to the issue”, said Jan Carlson, Chairman, President and CEO, Autoliv.
Toyota, in conjunction with NHTSA and the MLIT in Japan, have concluded that an additional retention bracket will address this issue.
It is too early to determine the final cost to Autoliv, but it is currently expect it to be at the lower end of a range of 10 to 40 million USD, net of expected insurance recoveries, as published in Autoliv’s 10Q statement on April 29.
