| Related Video NTDTV |
NEW YORK—Japanese automobile giant Toyota Motor Corp. just can’t seem to catch a break. On Tuesday, Toyota issued a new recall of 437,000 vehicles worldwide due to braking system issues—which brings its recent recall total to around 8 million vehicles.
The latest recall involves mostly Prius hybrid vehicles, and Lexus HS 250h models produced after May 2009, as well as some early-production 2010 model-year Toyota Camry cars in the United States.
Sales of the Prius hybrid have also been temporarily halted. The Prius recall involves updating the software of the model’s anti-lock braking system to prevent “inconsistent brake feel during slow and steady application of brakes on rough or slick road surfaces when the ABS is activated in an effort to maintain tire traction,” according to the company.
For 2010 Camrys, approximately 7,300 vehicles were recalled to inspect the power steering hose that may cause brake fluid leak in some vehicles.
“We’re committed to doing everything we can—as fast as we can—to restore consumer trust in Toyota, and these recalls are part of this effort,” said Jim Lentz, President of Toyota Motor Sales, U.S.A.
“Our company is undertaking a top to bottom review to ensure that our vehicles meet our own high standards of safety and reliability, now and for the future,” he said.
Key Models Affected
The latest recalls affect two of Toyota’s best-selling vehicles. The Prius was the best-selling car in Japan last year for Toyota, and the Camry is Toyota’s most popular car in the United States.
The U.S. National Highway Traffic Safety Administration (NHTSA) has opened a Preliminary Evaluation into owner complaints about brake problems with the 2010 Prius. Toyota announced it will cooperate fully with NHTSA’s investigation, on its Web site, Toyota.com .
In addition, the automaker is facing more than 30 lawsuits from customers in the United States and Canada seeking damages of lost value on their vehicles. Toyota faces additionally numerous lawsuits alleging deaths and injuries caused by its defects.
The company estimates that recalls would cost 100 billion yen ($1 billion) this year, but predicts a profit for 2010 nonetheless.
Moody’s Investors Services on Tuesday placed Toyota’s senior unsecured long-term debt on review for possible credit rating downgrade.
Japanese Transport Minister Seiji Maehara told reporters on Tuesday that he would meet with U.S. ambassador John Roos on Wednesday, according to information from Reuters. The meeting seeks to confirm the two nation’s stance on Toyota’s massive safety recalls.
“Recalling defective products is important, but each country needs to consider how to prevent this from becoming a diplomatic problem,” Maehara said.
Recalls Hurt Image
Toyota, whose brand was once a watchword for quality, has had its image tarnished by this series of recalls, involving eight million vehicles worldwide.
The first recall, “Floor Mat Entrapment,” issued on September 29, 2009, was in response to driver’s floor mats which sometimes interfered with the accelerator pedal, causing it to get stuck in the wide-open position. This recall involved 4.2 million cars, both Toyota and Lexus models.
The second recall, “Pedal,” was issued because certain accelerator pedal mechanisms mechanically stuck in a partially depressed position or returned slowly to idle. This recall, announced mid-January, affected 2.3 million vehicles.
With additional reporting by James Fish
Friends Read Free