Toyota Motor Corporation (TM) is recalling 423,000 Lexus luxury brand cars in the U.S., per media reports. The recall is being made to fix fuel leaks which might lead to fire.

The Lexus vehicles recalled by Toyota include the Lexus GS of model years 2006 to 2011, Lexus LS of model years 2007 to 2010 and the 2006 to 2011 Lexus IS models. Toyota revealed that the vehicles’ fuel lines have nickel phosphate plating which prevents corrosion. In some of the lines, the particles may come into contact with a gasket that may destroy the sealing and lead to fuel leaks, causing fire. However, there have been no reports of any fires or injuries related to this issue.

Toyota was first informed about the issue in Jun 2010, when there was a report of gasoline odor being emitted from a customer's engine compartment. The automaker had investigated the issue but could not detect the actual reason until this year.

Till date, there have been six reports from the field and 238 warranty claims due to the problem. Next month onward, Toyota will inform the owners about the different versions of the vehicles affected. The automaker said that it will repair the gasket seating surface of the fuel delivery pipe where the fuel pressure sensor is installed, free of cost. The company will replace the gasket with a new one and re-install the fuel pressure sensor with the proper tightening torque.

Recently, Toyota announced three separate recalls, covering a total of 361,800 vehicles worldwide. The largest among the three recalls covers 170,000 Camry sedans that have a defective ball joint, which can drive the vehicles out of control. The second largest recall covers 105,800 vehicles, mostly in Japan. The last of the three recalls covers 86,000 Crown and Crown Majesta vehicles in Japan.

Toyota had announced three recalls in a week in October as well. The largest of the recalls covered 1.7 million vehicles globally. These vehicles were recalled for a possible fuel leak, which could result in fire. Another recall covered 800,000 Crown Majesta, Crown, Noah and Voxy vehicles manufactured between Jun 2007 and Jun 2012. These vehicles were recalled in Japan, China and other parts of Asia due to possible leakage in the brake master cylinder. Toyota also recalled 190,000 Corolla, Rumion and Auris models for problems in the fuel evaporator emissions control unit.

Toyota currently carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks worth considering include Gentex Corp. (GNTX), STRATTEC Security Corporation (STRT) and Meritor, Inc. (MTOR). Both Gentex and STRATTEC Security sport a Zacks Rank #1 (Strong Buy), while Meritor carries a Zacks Rank #2 (Buy).

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