Toyota to fix additional 1.09 mil. vehicles in floor mat recall

NEW YORK, Jan. 28 Kyodo -
Toyota Motor Corp. said Wednesday it will repair an additional 1.09 million
vehicles in the United States to reduce the risk of gas pedals getting stuck
under loose floor mats that could cause sudden acceleration.
The move will expand its already largest-ever U.S. recall in November to 5.35
million vehicles, the latest in a string of safety issues that have eroded the
Japanese auto giant's reputation and could possibly endanger its newly set
global sales target for 2010.
The additional models subject to the recall are 2008-2010 Highlander, 2009-2010
Corolla, 2009-2010 Venza, 2009-2010 Matrix, and 2009-2010 Pontiac Vibe -- a
compact car produced at a former joint venture plant with General Motors Corp.
in California, Toyota Motor Sales, U.S.A. Inc. said in a statement.
The expansion comes a day after Toyota said it will suspend sales of eight
models, including its popular Camry and Corolla models, involved in a separate
recall of around 2.57 million vehicles in the United States and Canada to fix
potentially defective accelerator pedals.
The automaker also said Thursday that it will recall about 750,000 units of the
RAV4 sport utility vehicle in China over similar gas pedal problems. It is also
mulling a recall of about 2 million vehicles in Europe.
Of the 5.35 million vehicles, around 2.35 million vehicles are subject to both
recalls in the United States. But even if the overlap is extracted, the number
of vehicles subject to the two separate safety issues is expected to top
Toyota's global sales of 6.98 million units logged last year, highlighting the
unprecedented magnitude of the recalls.
''Our aim is to improve customer confidence by giving priority to ensuring
quality,'' a Toyota official emphasized.
But the brand damage looks inevitable as U.S. dealers grapple with growing
inquiries from users even over the safety of Toyota cars not subject to the
recalls.
Earlier this week, Toyota announced its target to expand worldwide group sales
in 2010 by 6 percent from the previous year to 8.27 million units.
But the sales target does not take into account the impact of the latest recall
and may need a future revision with even a Toyota senior official admitting the
potential damage to sales.
Standard & Poor's Ratings Services kept its Toyota ratings unchanged on
Thursday but signaled they could be lowered if the automaker's brand damage is
weakened through a prolonged sales suspension of affected models.
''The suspension may put downward pressure on Toyota's earnings, which we
believe have entered a recovery phase,'' S&P said in a statement.
On risks of accelerator pedals getting trapped under loose floor mats, S&P
added, ''Although the voluntary recalls may demonstrate the company's
safety-focused stance, the risk remains that they may damage consumer
confidence in the quality of Toyota products.''
Separately, CTS Corp., U.S. pedal supplier to Toyota, said Wednesday it has
developed a newly designed pedal that has been tested and partly shipped to
some Toyota factories.
For the floor mat problem, Toyota maintains its position that the gas pedal's
shape is not a ''defect'' and will consider the repair as a voluntary measure.
The automaker has already announced remedies including reshaping pedals and
providing newly designed floor mats both for the driver's and front passenger's
seats to prevent the risk of unsecured or improperly fitted mats slipping
forward and jamming the pedals, causing sudden acceleration.
Meanwhile, the company said Toyota President Akio Toyoda will attend the annual
World Economic Forum taking place in the Swiss resort of Davos as scheduled and
has no plans of responding to the media on questions over the recalls.
==Kyodo