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Subject: Beleaguered Toyota to recall 270,000 cars globally
Beleaguered Toyota to recall 270,000 cars
globally
By SHINO YUASA, Associated Press Writer Shino Yuasa, Associated Press Writer –
Thu Jul 1, 11:49 pm ET
OKYO – Toyota Motor Corp. will recall 270,000 Lexus and other
vehicles worldwide to fix faulty engines, the company said Friday,
in the latest quality
lapse by the world's No. 1
automaker.
Flaws in valve springs, a crucial engine component, could make the
vehicle stall while it's moving, Toyota spokesman Hideaki Homma
said Friday in announcing the recall.
Lexus General
Manager Mark Templin said contaminated materials had been used for
valve springs during manufacturing.
Toyota has received about 200 complaints over faulty engines in
Japan but no accidents were reported there or abroad, Homma said.
Some drivers told Toyota that engines made a strange noise.
The global recall that starts Monday affects seven luxury Lexus
sedan models as well as the popular Crown, Toyota spokesman Paul Nolasco
said. Of the 270,000 recalled cars, some 180,000 were sold
overseas, including the United States, and 90,000 in Japan.
The automaker was already scrambling to repair its reputation after
8.5 million vehicles were recalled beginning in October because of
problems with sticking accelerator pedals and other issues.
Toyota was slapped with a record $16.4 million fine in the United
States for acting too slowly to recall vehicles with
defects.
Japan's major daily Asahi said Friday the latest recall of 270,000
vehicles could cost Toyota around 20 billion yen ($227 million).
Toyota could not confirm the report, which gave no sources.
Toyota will inform Japan's transport ministry of a recall of 90,000
vehicles on Monday. Nolasco said it was unclear how many vehicles
would be recalled in the United States.
Lexus said Thursday about 137,000 vehicles could be affected by the
engine problem in the U.S.
Ryoichi Saito, an auto analyst from Mizuho Investors Securities Co.
Ltd., said the latest recall was unlikely to hurt
Toyota.
"It is clear that Toyota has learned a lesson from the recall
disaster. The company has acted very swiftly to deal with
problems," Saito said.
Toyota dealers have repaired millions of vehicles following the
massive global recalls, but the automaker still faces more than 200
lawsuits tied to accidents, the lower resale value of Toyota
vehicles, and the drop in the company's stock.
Toyota said last week it will recall 17,000 Lexus luxury hybrids
after testing showed that fuel can spill during a rear-end
crash.
U.S. regulators were working with scientists from NASA to
investigate what caused some of Toyota's vehicles to suddenly
accelerate. That review is expected to be completed by late
August.
Officials were also investigating whether Toyota waited nearly a
year in 2005 to recall trucks and SUVs in the U.S. with defective
steering rods, a case that could lead to additional fines.
___
Associated Press writer Ken Thomas in Washington contributed to
this report.
