Toyota has been forced to recall 6.39 million vehicles globally due to faults in the steering columns and seats.
The car company is recalling 26 models including the Yaris, Urban Cruiser, RAV4 and Hilus.
179,000 Hilus utes sold in Australia between April 2004 and December 2009 have been recalled due to a problem with the cable in the steering which may cause the airbags to fail in an accident.
While 118,600 Yaris's sold between June 2005 and May 2010 have been recalled due to faulty seats.
Drive.com.au writer David McCowan said they were still investigating the recall but believed it may be an issue with outsourcing.
He said the recall, which is one of the industry's largest actions worldwide, may harm the company's brand.
"We're seeing that Toyota's share price in Tokyo has dipped by about five per cent this afternoon alone, which is pretty significant," he said.
"And certainly Toyota is very sensitive about recalls given that it recalled nearly 10 million cars in 2009 and 2010 for the unintended acceleration issues."
In a statement Toyota Australia said it would recall the previous generation Yaris three and five-door hatchbacks and Yaris sedan vehicles.
"The recall is due to the possibility that if the seat is moved forwards and backwards frequently the spring locking the driver's seat track in position may break," the statement read.
"In the three-door Yaris this condition may also affect the passenger's seat which is frequently moved to gain access to the rear seats.
"If the spring breaks within the seat track, the seat may not be able to be locked in position. In some cases, the broken spring may become stuck and the seat might appear to be locked in position.
"If the vehicle is driven with a broken seat track spring, the seat could move in the event of an accident and may increase the risk of injury."
Meanwhile the current generation Hilux recalls were due to the possibility that the spiral cable may become damaged when the steering wheel is repeatedly turned.
"If the spiral cable is damaged, the SRS airbag warning light will illuminate and the driver's airbag may not deploy in the event of an accident, which may increase the risk of injury to the driver," Toyota said in a statement.
Toyota said there had been no reported accidents in Australia because of the issues and the recall was a preventative measure only. LISTEN: David McCowan discusses the recall details with Tom Elliott Having problems listening? Upgrade your media player for Internet Explorer, Google Chrome or Firefox.
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