Japanese auto industry suffers new recall blow

[Blackseal]

Sat, Feb 20, 2010

AFP

 

 

 

TOKYO - The Japanese auto industry suffered a fresh blow to its reputation Thursday as the transport ministry announced the recall of 4,000 Isuzu trucks, after Toyota said it was checking a fault with its top model.

 

Isuzu Motors, which is part owned by Toyota Motor Corp., was to recall the 4,286 natural-gas powered trucks in Japan from Friday, due to a natural-gas fuel leak that could result in fires in the cab, the transport ministry said.

 

Toyota is facing a new US probe into complaints of steering problems with its Corolla, the world's best-selling car, in a fresh setback to the crisis-hit auto giant's efforts to restore trust in its brand.

 

 

The Japanese maker, already recalling more than eight million cars worldwide over defects linked to more than 30 deaths, said Wednesday it was looking into the issue and would recall the Corolla if it found a dangerous flaw.

 

Another recall would deal a heavy blow to efforts by the world's biggest automaker to bounce back from a string of safety issues and criticism that it was slow to recall potentially dangerous vehicles.

 

The iconic company, whose global expansion pushed it past General Motors in 2008 as world number one, is facing a litany of complaints ranging from unintended acceleration to brake failure and steering problems.

 

Now Washington has launched an investigation into the 2009 and 2010 model Corollas over the steering issues, a US Transportation Department official told AFP on condition of anonymity.

 

The National Highway Traffic Safety Administration was expected to officially announce the probe -- involving up to 500,000 vehicles -- as early as Thursday.

 

"It's just one piece of bad news after another. We don't know what will come next," said Shigeru Matsumura, an auto analyst at SMBC Friend Research Center.

 

Investors fear Toyota "hasn't hit the bottom of the crisis yet," he said.

 

"The situation is so bad we can't even forecast what sales and earnings will be in the next quarter," warned Matsumura.

 

Toyota shares lost 0.59 percent to 3,360 yen Thursday. The stock has plunged about 20 percent since January 21 in response to the mass recalls, which have triggered fears for the brand image of the whole of corporate Japan.

 

US authorities on Tuesday demanded that Toyota hand over documents to prove it did not drag its feet in recalling the vehicles once it learnt about defects that can lead to unintended acceleration.

 

There have been more than 160 complaints to US authorities since 2009 about the steering of the Corolla, the world's most popular car with global sales of more than 30 million since the first version was launched in the 1960s.

 

The 2009-2010 Corolla is among the models involved in Toyota's earlier recalls to fix the accelerator problem.

 

The number of complaints alleging deaths related to unintended acceleration in Toyota vehicles has surged to at least 34 since the company announced on January 26 it was suspending sales of eight models in the United States.

 

President Barack Obama's Transportation Secretary Ray LaHood has vowed "to hold Toyota's feet to the fire" to make sure its cars are safe.

 

The company faces dozens of lawsuits in the United States alleging Toyota was too slow to act on the problems. Experts say the legal action could potentially cost the company billions of dollars.

 

In a bid to prevent runaway car crashes, Toyota announced Wednesday that it would fit all new models with a system to cut engine power when the driver steps on the accelerator and brake pedals at the same time.

 

The US Congress on Thursday invited Toyota president Akio Toyoda to testify on the safety of the company's cars, despite his insistence that he would not appear.

 

The Toyota family scion, who is notoriously publicity-shy, signaled on Wednesday that he would skip a hearing by US lawmakers next week about the company's mass vehicle recalls and insisted that that his regional chief was well-equipped for any testimony to Congress.

 

But he said he might reconsider if formally invited by lawmakers, prompting US Representative Edolphus Towns on Thursday to write his letter to Toyoda, in which he requested a response by 5:00 pm (2200 GMT) Friday.

 

"There is widespread public concern regarding reports of sudden unintended acceleration in Toyota motor vehicles," wrote Towns, chairman of the House Committee on Oversight and Government Reform, in the letter noting "growing public concern" about Toyota cars.

 

"To help clarify this situation, I am inviting you to testify at a hearing of the Committee on Oversight and Government Reform."

 

Congress is planning to hold at least three congressional hearings to examine Toyota's handling of the massive safety recall.

 

 

 

[Krado]

Hmm.

 

So the potential problems with Toyota now are:

 

1) Accelerates when you don't want it to accelerate

2) Doesn't want to go where you want it to go

3) Doesn't stop when you want it to stop

4) Burn you to death?

 

Hmm.

 

Or is it just me, that only US-made Toyotas are affected?

 

 

[Leepee]

Its funny....how come only Toyota cars has such problems.

 

Its definately a backlash by the conspiring car manufacturers to stop Toyota dominance.

 

 

[Babyt]

yes. i think so too.

 

its so obvious they r trying to pin down toyota for each and every issue they can find on their cars.

 

its not as if other brands do not have problem...its just no one ask and the other manufacterers are not revealing.

[Cruisecontrol]

I'm curious!

 

Has there been any cases resulting in accidents both minor or major prior to the recalls?

 

If not, there must be sinister motive to this whole campaign.

 

Guess who will benefit from this Toyata bashing ? Certainly GM, Ford and Chrysler and some to a certain extent the Korean car mfgrs.

[Leepee]

The USA is great at creating hoo-haa.

Protecting their banks and industries is upmost on the economic recovery path.

GM and other was almost on the brink of bankrupt. Yet their cars are ZERO safety issues! I am pretty impressed and sceptical.

 

[Sdf5725]

The USA is great at creating hoo-haa.

Protecting their banks and industries is upmost on the economic recovery path.

GM and other was almost on the brink of bankrupt. Yet their cars are ZERO safety issues! I am pretty impressed and sceptical.

 

Search for web before comment on other car makes issues. There are quite a few recall also for GM cars.

US is making a big big issue on Toyota issue deliberately or not, i am not at the position to comment. But if issues are on braking or unwanted acceleration, i believe it is a big issue. Put it on your shoe, will you want to drive a car that ppl already prove to you that the brake/accelerator got problem?

[Krado]

Yet their cars are ZERO safety issues!

 

Korea is overrun with Korean cars

China is overrun with Chinese cars

Malaysia is overrun with Malaysian cars

 

In the USA however...

1. Ford F-Series: 179,632

2. Toyota Camry: 150,242

3. Chevrolet Silverado: 149,949

4. Honda Accord: 131,043

5. Toyota Corolla: 121,643

6. Honda Civic: 118,459

7. Nissan Altima: 96,428

8. Dodge Ram: 94,516

9. Ford Fusion: 85,146

10. Honda CR-V: 78,917

 

If you take out the pickup trucks (in italics), there's only one American-brand car. Ford fusion.

 

And of my my friends who live in the states once said: "American cars have zero safety issues, because they break down before the accident occurs."

Edited February 21, 2010 by Krado

[Dentalfloss]

if toyota is providing unlimited mileage warranty after this fiasco...i wont mind buying!!

[Friendstar]

Its funny....how come only Toyota cars has such problems.

 

Its definately a backlash by the conspiring car manufacturers to stop Toyota dominance.

 

 

 

Do whatever u want, as long as u don't get caught.

 

Simple enough logic?

[Friendstar]

I'm curious!

 

Has there been any cases resulting in accidents both minor or major prior to the recalls?

 

If not, there must be sinister motive to this whole campaign.

 

Guess who will benefit from this Toyata bashing ? Certainly GM, Ford and Chrysler and some to a certain extent the Korean car mfgrs.

 

 

 

Why not say Honda will benefit? Since it's 2nd to Toyota in terms of reliability.

[Pocus]

Its funny....how come only Toyota cars has such problems.

 

Its definately a backlash by the conspiring car manufacturers to stop Toyota dominance.

 

I fully agree....for all you know GM and other US car makers are puling the strings...