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July 6, 2010

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Toyota recalls Lexus in Japan in global glitch

TOYOTA started recalling more than 90,000 luxury Lexus and Crown vehicles yesterday in Japan over defective engines - the latest setback for the auto maker beset with quality problems.

Toyota Motor Corp spokesman Paul Nolasco said recalls in overseas markets will follow soon, totaling about 270,000 vehicles globally.

That includes 138,000 vehicles in the United States, 15,000 in Europe, 10,000 in the Middle East, 6,000 in China, 4,000 in Canada, and 8,000 in other regions.

Toyota told the Japanese government yesterday it was recalling 91,903 vehicles for flaws in the valve springs, a crucial engine component, that could make the automobile stall while in motion. "We apologize for inconveniencing our customers. We hope to fix the problem soon," Nolasco said.

The quality problem affecting top-of-the-line products comes as Toyota struggles to move on from massive global recalls that started in October. It already has recalled more than 8.5 million vehicles for various problems, including sticking gas pedals, braking software glitches and defective floor mats.

The world's top auto maker was fined a record US$16.4 million in the US for responding too slowly when the recall crisis erupted.

The latest woes, announced last week, come on top of a recall last week for 17,000 Lexus hybrids after testing showed fuel can spill during a rear-end crash.

Analysts said yesterday's recall did little to instill consumer confidence after Toyota President Akio Toyoda, facing shareholders last month, vowed to improve vehicle quality inspections.

"It is not doing a good job in communicating a message about what exactly it is doing to beef up quality checks," said Shotaro Noguchi, auto analyst with Nomura Securities Co in Tokyo. "So it is hard for people to believe Toyota is taking the customer's view as it is promising to do."




 

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