Toyota Motor Corp ( TM ) is dealing with multiple challenges, including a major U.S. vehicle recall and plans to reduce production for Middle East markets amid geopolitical tensions.

Toyota Recalls More Than 550,000 SUVs Over Seat Safety Defect

Toyota Motor ( TM ) is recalling 550,007 vehicles in the U.S. after regulators identified a defect that could prevent second-row seat backs from locking properly, increasing the risk of injury in a crash, according to the National Highway Traffic Safety Administration (NHTSA).

The recall covers certain 2021–2024 Toyota Highlander and Highlander Hybrid models.

Regulators said the seat-back mechanism may fail to lock when the seat is adjusted, potentially preventing the seat from properly restraining occupants during a collision.

Seat-Back Mechanism Fault Triggers U.S. Safety Recall

The issue involves the return springs in the seat-back recliner assemblies, which may not engage correctly.

The company dealers will replace the return springs in the seat-back recliner assemblies at no cost to owners.

It expects to mail notification letters to affected vehicle owners around April 20, 2026.

Owners can contact Toyota ( TM ) customer service for more information and reference recall numbers 26TB06 and 26TA06.

Toyota Slashes Middle East Production Amid Hormuz Disruptions

Toyota Motor ( TM ) plans to cut production of vehicles destined for the Middle East by nearly 40,000 units across March and April due to logistical disruptions linked to the U.S.-led war with Iran and the closure of the Strait of Hormuz.

The reduction will primarily affect Japan-built models such as the Land Cruiser, SUVs, sedans, and commercial vans.

Production will be lowered by about 20,000 units in March and 18,000 in April, equivalent to roughly 60%–70% of Toyota's ( TM ) typical monthly exports to the region, according to Nikkei Asia.

TM Price Action: Toyota Motor ( TM ) shares were down 2.30% at $211.60 at the time of publication on Friday, according to Benzinga Pro data.

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