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Toyota Defies Odds: Sales In North America Soar Amidst V6 Engine Recall

Toyota Tundra assembly line

Summary

  • Toyota is undergoing an NHTSA recall involving 105K vehicles with the V35A 3.5-liter twin-turbo V6 in the Tundra and Lexus LX600 SUVs
  • The Automaker’s reputation is still strong, with the Toyota and Lexus brands leading scores in the J.D. Power Dependability study
  • Toyota’s reputation for reliability continues to drive strong sales in North America
  • Lexus hits best-ever first-half sales in its 35-year history

Toyota has long been synonymous with reliability and durability in the automotive world. From compact sedans to rugged pickup trucks and SUVs, the Japanese manufacturer is known for producing vehicles that stand the test of time, building a formidable reputation for quality that resonates with drivers globally.

Still, if you’re a Toyota enthusiast or an avid automotive newsreader like us, you’ve probably heard about a major Toyota recall affecting the V6 turbocharged engines in 100,000+ Tundra and Lexus SUVs. If not, we’ve got you covered; we’ll dive deep into the details in this article. 

However, despite this significant blow to this carmaker’s stellar reputation, Toyota Motor North America reports sales increased during the first half of 2024, with the Lexus brand hitting sales hallmark in its 35-year history.

The Toyota Tundra and Lexus LX600 V6 Engine Recall Explained

In late May 2024, Toyota recalled 102,092 vehicles—98,568 Tundras and 3,524 LX600s manufactured between November 2021 and February 2023. The recall involved “machining debris” left inside the engine that could cause malfunctions. The affected engine that powers both models is the V35A 3.5-liter twin-turbocharged V6. Toyota was aware of 824 engine warranty claims believed to be associated with the issue, but no injuries resulting from the engine failure have been reported.

Toyota V35A 3.5-liter twin-turbo V6

Credit: Toyota

Common symptoms of the impacted vehicles include engine knocking or running rough, a loss of power, or a failure to start. Toyota and Lexus dealerships will replace the engine for free. The carmaker estimates that the labor will take 13 to 21 hours, but the exact time will depend on the model and availability. Owners will receive a loaner or rental vehicle while the maintenance is performed. The NHTSA campaign number is 24V-381. Toyota’s numbers for this recall are 24TB07/24TA07 and 24LB04/24LA04.

Toyota And Lexus Remain Top Performers In Reliability

Despite the automaker’s engine troubles, Toyota and its luxury sub-brand Lexus continue to be the top performers in reliability, according to a recently released 2024 Vehicle Dependability Study conducted by J.D. Power & Associates that provides valuable insight into the state of reliability in the car industry. This study examines the dependability of vehicles in great detail, including not only mechanical problems but also software, firmware, and infotainment difficulties.

J.D. Power's 2024 Dependability study

Credit: J.D. Power

The study assesses reliability by calculating the frequency of reported problems per 100 units, as this measurement serves as a reliable indicator of a vehicle’s long-term dependability. Toyota and Lexus have shown outstanding success in this aspect, with a rate of 147 issues per 100 units for Toyota and 135 per 100 for Lexus. This results in an average of approximately 1.41 issues per vehicle, which is remarkably reliable. In comparison, Chrysler sits at the bottom of the list with a rate of 310 issues per 100 units.

The Reliability-Sales Correlation

Toyota has found itself in an interesting predicament. On the one hand, the recall of its V35A 3.5-liter twin-turbocharged V6 engine has undoubtedly marred its longstanding image of dependable cars. This issue has raised questions about long-term viability of Tundra and Lexus LX600s among consumers. A product recall like this would have a bearing on consumer confidence and future sales.

Toyota, however, remains the leading retail brand in North America despite this setback. This attests to the strength of the company overall and its customer loyalty base. Elements contributing to this continued success are:

  • Strong Lineup: Toyota offers different types of cars, including compact cars, SUVs, and trucks that can cater to various market segments.
  • Hybrid Leadership: The company has been a trendsetter in hybrid technology which it continues to lead in today’s market.
  • Efficient Recall Handling: It is possible that prompt addressing concerns from customers through proper communication during this period may have reduced negative sales impacts.
  • Brand Loyalty: Often, existing owners favor the same brand when they purchase another car.

Although the V6 recall is a major challenge for Toyota, its ability to steer through these turbulent waters while retaining its leadership position highlights how reliability directly relates to sales volumes. Consumer choices are heavily swayed by Toyota’s enduring reputation for reliability.

Toyota Leads Retail Sales in First Half of 2024; Lexus Hits Record Sales

Like other automakers, Toyota has not been exempt from quality problems in its assembly lines. The V6 engine recall was not the only one in the company’s history. A few years ago, many of its cars manufactured between 2009 and 2011 suffered unintended acceleration caused by improperly installed floor mats, causing the accelerator pedal to stick and accelerate uncontrollably. Sometimes, the accelerator pedal itself could become stuck, leading to unintended acceleration. This malfunction, unfortunately, killed 89 people. Toyota recalled millions of cars and was forced to pay $1.2B for hiding deadly ‘unintended acceleration.’ 

Toyota CIAS Toronto

Credit: Toyota

However, despite the fatal consequences of this mechanical failure, Toyota’s reliability and safety record remain favorable. Consumers in North America continue to perceive Toyota as a brand with a strong reputation, as reflected in its sales during the first half of 2024. Toyota Motor North America (TMNA) has reported impressive sales figures for the first half of 2024.

TMNA’s first-half U.S. sales increased by 14.3 percent in volume and 12.8 percent in daily sales rate (DSR), totaling 1,186,647 automobiles. Their electrified lineup sales increased by an impressive 65.7% on a DSR basis and 67.9% on a volume basis in the first half, reaching 454,197 units sold, or 38.3% of the group’s total sales volume.

Lexus US Annual Sales Units Growth chart

And it gets more interesting for Lexus. With 28,343 units sold in June, Toyota’s luxury division saw a 5.9 percent increase in volume and DSR. With a 9.3 percent increase in volume and DSR, the brand sold 88,740 vehicles for the second quarter. With 167,211 cars sold in the first half, a rise of 11.9% in volume and 10.5% in DSR, Lexus achieved the best-ever first-half total sales for the brand.