Wednesday, January 27, 2010

Toyota stops some model sales, suspends output - U. S

Toyota Motor Sales USA has temporarily stopped dealers selling eight models involved in the recall for sticking accelerator pedals announced on 21 January, 2010 and will also suspend production. The unusual move affects 2009-2010 RAV4, 2009-2010 Corolla, 2009-2010 Matrix, 2005-2010 Avalon, some 2007-2010 Camry, 2010 Highlander, 2007-2010 Tundra and 2008-2010 Sequoia models, some of which are built and sold only in North America.

Toyota will also stop producing vehicles in five North American factories for the week of 1 February "to assess and coordinate activities". The affected plants are in Canada (Corolla, Matrix, RAV4); Indiana (Sequoia and Highlander); Kentucky's line 1 (Camry and Avalon); Subaru of Indiana Automotive (Camry) and Texas (Tundra).

The sticking accelerator pedal recall is separate from the on-going 4.26m-vehicle recall of Toyota andLexus vehicles to reduce the risk of pedal entrapment by incorrect or out of place accessory floor mats. Approximately 1.7 million Toyota Division vehicles are subject to both separate recall actions.

The later recall of about 2.3m vehicles is to correct sticking accelerator pedals on Toyota models following "isolated" reports of sticking accelerator pedal mechanisms in some vehicles without installed floor mats. It's possible pedal mechanisms may mechanically stick in a partially depressed position or return slowly to the idle position, the automaker said.

"Helping ensure the safety of our customers and restoring confidence in Toyota are very important to our company," said Toyota division general manager Bob Carter in a statement. "This action is necessary until a remedy is finalised. We're making every effort to address this situation for our customers as quickly as possible."

"This could be an extended issue. It is very serious," IHS Global Insight analyst Aaron Bragman told the Los Angeles Times, which noted that US industry observers could not not recall a time in recent history when a carmaker had stopped both production and sales of so many models at once.

The eight models affected accounted for 57% of US sales last year of all Toyota brands, including Lexus and Scion. Bragman estimated that the move could stop the production and sale of up to 105,000 Toyota cars and trucks a month, based on the most recent sales figures. He noted the sales freeze came just as Ford, General Motors and Hyundai all were improving quality and mounting aggressive sales and marketing campaigns.

"This is the mother of all 'stop sales', it appears," Fritz Hitchcock, who owns Toyota dealerships in Santa Barbara, Northridge and the City of Industry, told the LA Times.

“Toyota needed to send a clear message they care more about their customers than monthly profits. And they are.”

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