Toyota Motor Corp (NYSE: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 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 customer service for more information and reference recall numbers 26TB06 and 26TA06.

Toyota Slashes Middle East Production Amid Hormuz Disruptions

Toyota Motor 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 typical monthly exports to the region, according to Nikkei Asia.

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

Image via Shutterstock