Toyota Motor North America is grappling with the fallout from a significant airbag recall that has halted sales of two of its most popular three-row crossovers, the Toyota Grand Highlander and Lexus TX. In a surprising turn, U.S. dealers reported negative sales figures for August—buying back six Grand Highlanders and five Lexus TX models from customers, rather than selling any. This came after a failed National Highway Traffic Safety Administration (NHTSA) audit in May, which uncovered a flaw in the vehicles’ side-curtain airbags.
The recall affects approximately 158,000 vehicles, including around 4,000 units currently in dealer inventory. Toyota has stopped production of the models until the airbag issue is resolved. The automaker plans to begin repairs in October, addressing the airbag defect by redesigning the curtain shield airbags on the driver and passenger sides. Once the updated parts are available, customers will receive notifications to schedule repair appointments, and production will resume by the end of October.
The problem was discovered during a random NHTSA compliance test, where the curtain shield airbag, designed to deploy along the vehicle’s length to protect passengers, failed to remain fully inside the cabin when the driver’s side window was rolled down. Toyota engineers quickly identified the issue and developed a fix, modifying the airbag’s anchoring system to ensure it meets safety standards.
Despite the setback, Toyota’s leadership is committed to resolving the issue without compromising customer satisfaction. Kent Rice, Toyota’s vice president of quality, emphasized that the company has focused solely on correcting the defect, regardless of the cost. “This is our opportunity to put our values into action and do what’s right for the customer,” Rice stated.
Dealers, although frustrated by the sales halt, remain optimistic. The Grand Highlander had been performing exceptionally well, with Toyota averaging 9,200 sales per month before the recall. Lexus TX also saw steady demand, with around 3,500 monthly units sold. In fact, the Grand Highlander’s popularity has been so strong that Toyota is planning to convert the smaller Highlander into an EV by 2026, as the larger model has overtaken its market share.
As Toyota prepares to fix the issue and resume sales, dealers are confident the automaker will resolve the matter efficiently. Mark Montenero, the chairman of the Toyota National Dealer Advisory Council, praised the company’s approach: “Toyota will fix it, and they’ll do it right. That’s what Toyota does.”
