Autoliv's Stock Drops, After Company Cooperates With Toyota In Recall Of 1.4 Million Vehicles

Shares of Autoliv Inc. tumbled 6% in premarket trade Wednesday, after the auto components maker said it was cooperating with Toyota Motor Corp. in the voluntary recall of about 1.4 million Toyota Prius and Lexus CT200h vehicles because of faulty side curtain airbags. The company said there have been seven incidents involving the Prius in which a side curtain airbag partially inflated without a deployment signal. There have no reported injuries, as in each case, the cars were parked and unoccupied. Autoliv said it expects the cost of the recall to be at the lower end of a range of $10 million to $40 million. The company said the analysis of the root cause of the problem is ongoing. The stock had dropped 12% year to date through Tuesday, while the S&P 500 has slipped 0.4%.