Toyota shares plunge as manufacturer recalls 2.7m cars

<p>Toyota shares have taken a nosedive after the manufacturer recalled 2.7 million cars.</p>

Toyota's share price has plunged by 3.1 per cent to €30.00 on the Frankfurt Stock Exchange this morning (November 14th) as the car manufacturer has recalled 2.7 million vehicles worldwide due to a water pump and steering wheel fault.

This is the latest blow for the Japanese company, which has suffered major sales falls due to protests in China hampering demand as both countries continue their territorial dispute over a clutch of islands in the East China Sea.

Furthermore, the business had to recall more than seven million vehicles four weeks ago as a result of faulty window switches, affecting Corolla and Camry models sold around the world.

This latest recall will also affect the Toyota Corolla, as well as second-generation Prius cars.

Some 75,000 UK vehicles will be affected, doing further damage to Toyota's reputation, which the firm is trying to rebuild after its largest recall in 2009, when 12 million vehicles had to be returned and led to the head of the business issuing a formal apology.

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