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Toyota Halts Lexus, SAI Hybrid Shipments on Same Brake Problems as Prius

by on February 8, 2010

By Makiko Kitamura and Tetsuya Komatsu Feb. 9 (Bloomberg) — Toyota Motor Corp. stopped shipments of its Lexus HS250h and SAI hybrids from a factory in southern Japan due to possible brake problems with the models, which use the same system as Prius hybrid cars. Shipments from the factory in Kyushu were stopped yesterday to inspect the models, Norifumi Wakikawa , a spokesman at Toyota Motor Kyushu, said by phone today. Toyota, the world’s biggest carmaker, is expected to recall the 2010 version of the Prius in Japan this week to repair a problem with the braking system. Scrutiny of the vehicles may further tarnish Toyota’s reputation after the Toyota City, Japan-based company recalled almost 8 million cars globally to repair separate defects linked to unintended acceleration. Those recalls have yet to include any cars in Japan, where the Prius was last year’s top-selling model. Toyota has been investigating reports that Prius owners driving at low speeds on bumpy or icy roads may experience moments where the car continues to coast for about a second after the brakes are applied because of the anti-lock brake system. The company plans to recall at least 270,000 Priuses in Japan and the U.S., a person familiar with the matter said, declining to be identified as the information isn’t yet public. Japan, U.S. Recalls Ririko Takeuchi , a Toyota spokeswoman in Tokyo, declined to say whether the company will recall the Prius. The carmaker may notify Japan’s Transport Ministry of plans to recall the model as early as today, followed by a similar action in the U.S., Nikkei English News said, without citing anyone. Juergen Stolze , a Toyota spokesman in Cologne, Germany, said yesterday the carmaker will decide by Feb. 10 whether to recall Prius cars in Europe. Toyota rose 1.8 percent to 3,340 yen as of 9:57 a.m. on the Tokyo Stock Exchange. The company has lost about $33 billion in market value since Jan. 21, when it announced a recall of 2.3 million U.S. vehicles for defects linked to unintended acceleration. To contact the reporter on this story: Makiko Kitamura in Tokyo at mkitamura1@bloomberg.net

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Toyota Halts Lexus, SAI Hybrid Shipments on Same Brake Problems as Prius

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Toyota Tells U.S. Dealers to Expect Update This Week on Prius Brake Plan

by on February 7, 2010

By Alan Ohnsman Feb. 7 (Bloomberg) — Toyota Motor Corp. , grappling with record U.S. recalls, said it told U.S. dealers to expect an update early this week on steps the company plans to take to address complaints over brakes on the 2010 model Prius hybrid. “We notified dealers in a short letter yesterday that we believe we’ll have more specific information on our plans for Prius next week,” John Hanson , a spokesman for Toyota’s U.S. sales unit, said yesterday. “We know dealers have customers coming to them who are concerned and we’re trying to give them as much information as we can, as fast as we can.” Toyota, the world’s largest automaker, didn’t tell dealers it will make a formal “announcement” on a fix for Prius and hasn’t yet determined whether a recall is necessary, he said. Should the Toyota City, Japan-based company recall the latest version of Prius, the world’s best-selling hybrid car, it would add to the perception of quality problems at Toyota. The company has already recalled 5.6 million cars and light trucks in the U.S. since November to correct flaws linked to unintended acceleration, an issue Toyota says isn’t connected to Prius brakes. Japan’s Nikkei newswire reported that Toyota would recall 270,000 Priuses in Japan and the U.S. to correct software in the braking system. Toyota hasn’t confirmed that report. Complaints in U.S. The National Highway Traffic Safety Administration said it has 124 complaints from U.S. drivers about Prius brakes. Toyota has said it’s investigating reports that Prius owners driving at low speeds on bumpy or icy roads have experienced moments in which the car continues to coast for about a second after the brakes are applied because of the anti-lock brake system. NHTSA isn’t aware of a plan by Toyota to announce a fix for brakes on Prius hybrids this week, Olivia Alair , a spokeswoman for the agency, said in an e-mailed message. The company said last week it altered software on Priuses built in Japan in January to correct the issue. A class action suit against the automaker was filed in Canada Feb. 5 over alleged defects in the Prius braking system. Toyota’s U.S. sales unit is based in Torrance, California. To contact the reporters on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net

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Toyota Faces Canada Class-Action Suit Claiming Prius Defect, Law Firm Says

February 5, 2010

By Margaret Cronin Fisk Feb. 5 (Bloomberg) — Toyota Motor Corp. , the world’s largest automaker, was sued in Canada in a class-action case claiming defects in the braking system of its Prius and Lexus hybrid vehicles, a law firm said. Merchant Law Group said it filed a claim today in Victoria, British Columbia, against the automaker on behalf of Canadian owners of 2010 Toyota Prius and Lexus HS250h hybrids. The lawsuit , which seeks reimbursement of purchase prices or payment equal to a loss in resale value, claims the vehicles’ brake systems are defectively designed because they shut off brake power to save energy. “The energy reclaiming nature of these vehicles as part of braking makes them dangerous for use,” attorney Tony Merchant said in a statement sent to Bloomberg. “As the vehicle switches to the brake pad system, there is a lapse where the vehicle has no braking power.” Toyota is facing at least 30 class-action , or group, lawsuits in the U.S. and Canada connected to multiple recalls over sudden acceleration of its vehicles. More than half of these lawsuits blame Toyota’s electronic throttle control system for these events. The Canada hybrid lawsuit isn’t connected to those cases. Quebec Lawsuit The Merchant firm in Regina, Saskatchewan, said it also sued Toyota Canada Inc. and Toyota North America and that it filed a separate claim today in Quebec. Sandy Di Felice, director of external affairs with Toyota Canada in Toronto, said the company hasn’t been served and isn’t aware of either lawsuit. Toyota has been investigating reports that Prius owners driving at low speeds on bumpy or icy roads may experience moments in which the car continues to coast for about a second after the brakes are applied because of the anti-lock brake system. The company said this week that it changed the design of Prius brake software at the end of January to correct the situation. The carmaker said it is considering steps dealers can take for current Prius owners, including exchanging some parts. There has been no recall of the 2010 Prius or Lexus HS250h announced in the U.S. and Canada. The case is Marklely v. Toyota Canada Inc., 10-0540, Supreme Court, British Columbia (Victoria). To contact the reporter on this story: Margaret Cronin Fisk in Southfield, Michigan, at mcfisk@bloomberg.net .

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