Tuesday's revelation that three Toyota Motor Corp. officials are under investigation for professional negligence over a delay in a vehicle recall highlights a dilemma for carmakers.
While the case serves as a harsh reminder to the automotive industry that failing to issue a timely recall can seriously damage a company's image, such recalls, particularly if they are frequent, can do the same.
Japan's recall system obliges manufacturers and importers to repair vehicles for design flaws or manufacturing defects that could pose a safety problem. Automakers that receive reports of defects are required to investigate and determine whether a recall is necessary.