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for 02/08/2010
(last updated 7:30am EST 02/08/2010)
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Toyota poised to recall Prius hybrid cars over brake fault
From: Latest financial, market & economic news and analysis | guardian.co.uk
Category: Business
02/07/2010 (21 h 8 m ago)
Expected recall of flagship green vehicle risks inflicting further damage to reputation of the world's biggest carmaker Toyota is poised to recall hundreds of thousands of Prius hybrid cars to fix a potentially dangerous brake defect, reports in Japan said today. The expected recall of Toyota's flagship green vehicle risks inflicting further damage to the reputation of the world's biggest carmaker, which has already recalled more than 8m cars worldwide because of potential accelerator problems. British Prius owners are likely to have to wait for service. The firm is expected to initially recall and repair around 270,000 of the petrol-electric hybrids in the US and Japan, where drivers have reported momentary brake failure at slow speeds, particularly on bumpy or slippery roads. The recall may later be extended to other countries, the reports said. US authorities are looking into 100 complaints affecting the newest Prius model, which went on sale last May, while Japan's transport ministry is aware of dozens of similar cases. Toyota said the problem was not mechanical, but was due to a software glitch that can be fixed in about 30 minutes. Last week it invited allegations of a cover-up after it admitted it had already started fixing the defect on models assembled since the end of last month. The Prius, the world's most popular hybrid model and the best-selling car in Japan last year, is regarded as pivotal to Toyota's attempts to corner the market in fuel-efficient cars. Toyota has sold more than 300,000 of its third-generation Prius in 60 countries since its launch last May, including 170,000 in Japan, 100,000 in the US and 29,000 in Europe. Speculation that the Prius would be the latest model to fall victim to Toyota's quality control problems rose last week when the transport minister, Seiji Maehara, said he expected the recall to take place and criticised the firm for failing to "focus on the consumer". Toyota had initially decided to offer repairs to Japanese owners under a voluntary service campaign, but later decided on a full recall to try to regain the trust of its customers, the Yomiuri Shimbun said. It said the company had already notified domestic dealers. The Kyodo news agency said Toyota had also informed dealers in the US of plans to begin fixing Prius brakes. In an email sent to dealers on Friday, Bob Carter, a Toyota group vice president, said the firm would announce the details of the Prius repair plan this week. US authorities have launched an investigation into the glitch, which has caused four accidents and two minor injuries. Carter said the brake defect "has prompted considerable customer concern, speculation, and media attention due to the significance of the Prius image. We want to assure our dealers that we are moving rapidly to provide a solution for your existing customers." Toyota can expect even closer media scrutiny at home if it goes ahead with the recall, as it would involve Japanese customers for the first time. The company has attracted widespread criticism for its slow response to the accelerator pedal fault, which forced it to recall 4.45m cars last month, more than 2m of them in the US. Two weeks later, Akio Toyoda, the firm's president, finally emerged to apologise to customers and reassure them that "Toyota vehicles are safe". "I would like to take this opportunity to apologise from the bottom of my heart for causing many of our customers concern after the recalls across several models in several regions," he said on Friday. Toyota Automotive industry Motoring Japan Justin McCurry guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds
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