Fall-out from Recent Motorcyle and Auto Recalls
Amidst the recalls from Toyota, similar news comes from Korea, as Harley-Davidson will recall a total of 629 motorcycles from nine models types due to a defective fuel tank systems.
Both recalls are having ripple effects with company brands.
The Harley-Davidson motorcycles were manufactured between June 6, 2008 and Nov. 19 2009, the Korean Ministry of Land, Transport and Maritime Affairs said.
The issue at hand relates to the the fuel tanks, which, according to news reports, may rupture and leak if stress is placed on them in an accident. Free repairs are being offered this week at Harley-Davidson service centers across the nation.
In terms of the impact, analysts are looking at the company sideways as a bad fourth quarter financial performance is being adjusted, resulting in losses being bigger than expected.
The Harley recall comes on the heels of Toyota's news, which reported plans to recall nearly 2.3 million vehicles because of problems with accelerator-pedal assemblies that occur due to premature wear. This recall has sparked the removal of vehicles from major rental agencies in the U.S.
Enterprise Holdings, the largest U.S. rental operator, said it will keep the eight Toyota vehicle models subject to a safety recall due to faulty accelerator pedals out of its North American rental fleet until the situation is resolved.
The affected vehicles represent about 4 percent of the fleet of Alamo Rent A Car, Enterprise Rent-A-Car and National Car Rental brands, owned and operated by Enterprise Holdings, the company said.
The Toyota recalls have experts calling for the leading auto manufacturer to act quick in order to build its brand.