Toyota recall won’t impact residual values, says Glass’s
The recall affects current-generation models manufactured between March 2009 and February 2014 – it does not affect any other Toyota hybrids – with the majority being in the US and Japan.
The issue lies with the software used to control the boost converter in the Intelligent Power Module, part of the hybrid system’s inverter assembly. Due to the current setting, the car’s warning lights may go off and the car is likely to switch to “failsafe” operation where it operates with reduced power. In addition, in limited cases the hybrid system may shut down, causing the vehicle to stop.
The recall has been announced just weeks after a US recall of various models due to a problem with the seat heaters and follows a series of mass recalls in recent years that have hit at the carmaker’s reputation for quality.
In response, Richard Parkin, head of valuations and analysis at Glass’s, said: ‘While this move isn’t on the surface great news for the Toyota brand, we don’t feel it will actually have any impact on current or forecast residual values. Even after the brake recalls of 2009/10, residual values held firm, and this current issue with potential power loss can be easily remedied with a software fix that takes only 40 minutes at a dealer, and will be performed at no cost to the driver.
‘What is fundamentally important for Toyota here comes down to how they deal with the recalls. If dealers handle the problem sensitively and drivers come away with a positive message, feeling they have been taken care of, then a positive image of the brand will be reinforced. If it were to come out that a manufacturer had sought to suppress information that should have been acted on in the form of a recall – this is what would be far more damaging.’