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Toyota and Lexus Sudden Acceleration Recall Lawsuit

Toyota Recalls 2.3 Million Vehicles to Fix Gas Pedals

 

-Bloomberg

01/22/2010 - Toyota Motor Corp. will recall about 2.3 million vehicles in the U.S. to fix sticking accelerator pedals, following its biggest recall in the country last year for a similar danger.

The automaker, which said in November it would notify owners of 4.2 million Toyota and Lexus vehicles of a defect that may cause floor mats to jam the pedals, said in a statement yesterday that about 1.7 million autos are subject to both voluntary recalls.

The announcement may fuel concern that rapid expansion at the world’s largest automaker is leading to production and design glitches, eroding its reputation for quality. The recall is at least the fourth by Toyota involving more than 100,000 autos in the U.S. the past two years. The company’s sales in the country fell 20 percent in 2009, the biggest drop since 1961.

“This situation is slowly spiraling out of control,” said James Bell, executive market analyst with Kelley Blue Book, an Irvine, California-based vehicle data service. “As a company with a reputation for steadiness, these must be uncomfortable days for Toyota.”

Toyota’s American depositary receipts, each representing two ordinary shares, fell $2.25, or 2.5 percent, to $88.17 at 4:06 p.m. in New York Stock Exchange composite trading. The shares fell 3.2 percent in Tokyo, the most in more than three months, as the Topix Transportation Index lost 2.7 percent. Toyota closed at 4,055 yen on the Tokyo Stock Exchange.

Recall Models

“Our investigation indicates that there is a possibility that certain accelerator pedal mechanisms may, in rare instances, mechanically stick in a partially depressed position or return slowly to the idle position,” Irv Miller, group vice president for U.S. sales, said in the statement.

The recall announced yesterday applies to model years 2009- 2010 RAV4, 2010 Highlander and 2008-2010 Sequoia sport-utility vehicles; 2009-2010 Corolla, 2007-2010 Camry and 2005-2010 Avalon sedans; 2009-2010 Matrix hatchbacks; and 2007-2010 Tundra pickups, according to Toyota.

In November, Toyota also said it would recall 110,000 Tundra pickups after U.S. regulators began investigating the model for “severe” frame corrosion that could also cause brake failure.

“ Toyota is the new General Motors,” said Dennis Virag, president of Automotive Consulting Group Inc. in Ann Arbor, Michigan. “Quality issues hurt any automaker, and these quality problems are bubbling up to the surface at the time when you have very bad market conditions.”

In a Jan. 21 letter to U.S. regulators alerting them of the pedal issue, Toyota identified the supplier of the defective component as CTS Corp. A call to Mitchell Walorski, a spokesman for the Elkhart, Indiana-based company, wasn’t immediately returned.

Lexus Not Included

Toyota vehicles may still be well-regarded by buyers. Consumer Reports magazine last week said Toyota again led its annual automotive brand perception survey among consumers. J.D. Power & Associates in June said Toyota held its lead in a benchmark U.S. survey of new-vehicle quality.

No Lexus- or Scion-brand vehicles were included in the latest recall, the Toyota City, Japan-based automaker said. Other models not covered in the recall included the Prius and Camry hybrids.

“ Toyota has been discussing this issue with the agency over the last several days,” National Highway Traffic Safety Administration spokeswoman Karen Aldana said in an e-mail. “We believe it is a serious safety issue and we are pleased that Toyota is taking immediate action to address it.”

Notice to Owners

The timing for informing customers about the latest recall is still being worked out, said Brian Lyons, a spokesman for Toyota’s U.S. sales unit. Lyons couldn’t immediately say whether the company was aware of accidents or injuries related to the pedal flaw.

“We’re still investigating this issue,” he said.

John Hanson, a spokesman for Toyota’s U.S. unit, said the accelerator components used in the models recalled yesterday weren’t used in any Lexus vehicles or in some of the other models included in the November recall.

If you or a loved one have been injured or suffered a loss due to a jammed accelerator pedal or a recalled Toyota floor mat you may be entitled to compensation. Contact the Toyota-Lexus Recall Lawyers of Ennis & Ennis, P.A. for a free case evaluation by filling out the form on this page or calling toll-free: 1-800-856-6405. Our experienced attorneys can answer any questions you may have about the Toyota Floor Mat Recall or Toyota Lawsuit.