UPDATE 2-Mazda to recall 500,000 cars for power-steering flaw

* Recall area expanded to big markets like Europe, Australia

* Recall of Axela and Premacy cars manufactured in 2007-08
(Rewrites with company confirmation, details)

TOKYO, Aug 19 (BestGrowthStock) – Mazda Motor Corp (7261.T: ) expects
to recall more than half a million vehicles worldwide due to
power-steering flaws, a company spokesman said, its largest
recall ever as Japanese carmakers come under rising scrutiny for
quality problems.

The automaker has filed applications with local
authorities to recall 215,000 vehicles in the United
States and more than 10,000 in China, and now plans to broaden
the net to include major export markets such as Europe and
Australia, the spokesman said, confirming a domestic media

The recalls, estimated at 514,000 vehicles, target the Axela
and the Premacy, known in some markets as the Mazda3 and the
Mazda5, manufactured in Japan from 2007 to 2008.

The vehicles could experience a sudden loss of power
steering, increasing the risk of a crash.

The spokesman said there had been three accidents reported in
the United States in connection with the defect but no deaths or

The company said rust could break lose from a high-pressure
pipe, straining the power steering pump and causing the system to
shut down.

Last year it remedied the problem for models in Japan after
issuing an advisory.

Mazda’s Tokyo-listed shares appeared little affected by the
news, rising 1.6 percent to 197 yen compared with a 0.9 percent
rise in Tokyo’s transport equipment subindex (.ITEQP.T: ).

Toyota Motor Corp (7203.T: ) has recalled more than 10 million
vehicles since late last year due largely to problems with
unintended acceleration that raised a storm of criticism in the
United States.

It was fined a record $16.4 million by the U.S. National
Highway Traffic Safety Administration, the maximum then allowed,
for moving too slowly to recall vehicles with defective
accelerator pedals.
(Reporting by James Topham in TOKYO and Soham Chatterjee in
BANGALORE; Editing by Edmund Klamann)

UPDATE 2-Mazda to recall 500,000 cars for power-steering flaw