Daihatsu Extends Record Recall on Engine, Transmission Faults

Daihatsu Motor Co. (7262), Japan’s biggest minicar maker, called back vehicles with engines or transmission parts that malfunctioned, expanding a record recall for the company.

The automaker, majority owned by Toyota Motor Corp. (7203), will call back a total of 764,053 minicars in Japan, said Mako Adachi, a spokeswoman for Osaka-based Daihatsu. No accidents or injuries have been reported, she said. Minicars have engines that displace no more than 0.6 liters.

The recall is in addition to the record 891,525 vehicles Daihatsu called back less than three months ago. Daihatsu sold 1.06 million vehicles last year, including about 677,000 in Japan. Adachi declined to comment on the possible cost of the recalls.

Daihatsu shares have lagged behind the broader Topix (TPX) index this year, as well as Japan’s biggest carmakers. The stock fell 1 percent to 1,836 yen at the close of trading in Tokyo and has advanced 7.3 percent this year, while the Topix has surged 44 percent and Toyota has jumped 57 percent. Nissan Motor Co. is up 12 percent and Honda Motor Co. (7267) has climbed 35 percent.

Daihatsu hasn’t gained as much because it isn’t affected by currency moves as much as other Japanese carmakers, which have benefited from the yen’s decline, Christopher Richter, an analyst for CLSA Ltd., said in a report dated Nov. 28. He raised his rating on the stock to outperform, or buy, from sell.

To contact the reporters on this story: Anna Mukai in Tokyo at amukai1@bloomberg.net; Masatsugu Horie in Osaka at mhorie3@bloomberg.net

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net

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