Toyota recalls more than 120,000 cars in China

Toyota is recalling 121,930 cars in China to fix a problem that could result in loss of steering control.

The 54,657 Reiz and 62,517 Crown sedans were made by Toyota's venture with FAW Group between February 2005 and October 2006, Toyota said in a statement.

The 4,756 Lexus luxury models were made in Japan between February 2004 and September 2006, it said.

When contacted, a Toyota spokesman said the company does not provide cost estimates for recalls but said no accidents had been linked to the defects.

The recall comes in the wake of more bad news this week for the world's biggest carmaker which forecast a first-ever annual operating loss amid tanking global car demand.

Toyota , a week ago, cut its operating forecast to a loss of €1.1 billion for the year to end-March, after shocking financial markets last month by slashing its operating profit forecast by about €4.7 billion.