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News : International Last Updated: Jan 28, 2010 - 8:20:22 AM


World's biggest carmaker Toyota hit by more recalls in US - - investigating safety issues in Europe
By Finfacts Team
Jan 28, 2010 - 8:08:40 AM

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Toyota, the world's biggest carmaker announced on Wednesday that a problem with car accelerators is also being investigated in Europe. In the US, Toyota recalled 1.1 million more vehicles over concerns that floor mats could get entangled under the accelerator pedal, potentially causing sudden acceleration, as the company with a brand synonymous with quality, is battling with a public relations nightmare.

Last week, the company recalled 2.3 million cars with faulty pedals and the company has had over 8 million recalls since October 2009.

On Tuesday, Toyota suspended sales and production of eight models affected by the fault.

"Toyota will implement a recall in Europe for this matter," Toyota Europe said on Wednesday. "The models and exact number of potentially affected vehicles is under investigation."

"Toyota's remedy plan is to modify or replace the accelerator pedals on the subject vehicles to address the risk of floor mat entrapment," the company said in the US.

The latest recall affects five models: the 2008-2010 Highlander and the 2009-2010 Corolla, Venza, Matrix and Pontiac Vibe.

The New York Times reports that Japanese media raised fears that Toyota’s problems might damage the reputation of other Japanese companies.

“The discrediting of Toyota could even destroy the world’s trust in Japanese manufacturing, which relies on its reputation for high quality,” warned the Tokyo Shimbun, a daily newspaper.

But fears about lasting damage to Toyota may be overblown, given the short attention span of consumers, said Jeffrey K. Liker, a professor of engineering at the University of Michigan and the author of the best-selling book “The Toyota Way.”

“This is an unfortunate series of events that aren’t a good reflection of the health of the company,”he said.

“But if they aren’t selling cars, nothing else matters.”

In Tokyo today, Toyota Motor Corp. shares fell 3.9% .

Seeking to capitalise on Toyota owners’ nervousness, General Motors announced on Wednesday that it would offer a special $1,000 “conquest” discount if customers bought a GM vehicle.

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