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Toyota halts US sales of Camry, 7 other models

Wed Jan 27, 2010 1:44 AM EST
world-news, business, as, toyota, recall, toyota-recall
Yuri Kageyama, AP Business Writer
< PreviousNext >
showing 1 of 7 photos
<p>FILE - In this Feb. 24, 2008 file photo, an unsold 2009 Matrix sits at a Toyota dealership in Boulder, Colo. Toyota Motor Co. on Tuesday, Jan. 26, 2010 announced it is temporarily suspending sales of eight vehicle models involved in last week's recall of 2.3 million vehicles to fix accelerator pedals with mechanical problems that could cause them to become stuck. (AP Photo/David Zalubowski, File)</p>

FILE - In this Feb. 24, 2008 file photo, an unsold 2009 Matrix sits at a Toyota dealership in Boulder, Colo. Toyota Motor Co. on Tuesday, Jan. 26, 2010 announced it is temporarily suspending sales of eight vehicle models involved in last week's recall of 2.3 million vehicles to fix accelerator pedals with mechanical problems that could cause them to become stuck. (AP Photo/David Zalubowski, File)

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TOKYO — The faulty gas pedals that prompted Toyota to suspend U.S. sales of eight of its most popular models — including the Camry, America's best-selling car — are also in its vehicles sold in Europe, an official with the automaker said Wednesday.

Toyota Motor Corp. announced late Tuesday the unprecedented sales suspension to fix gas pedals that could stick and cause acceleration without warning. Last week, Toyota issued a recall for the same eight models involving 2.3 million vehicles.

Toyota is also halting production at six North American car-assembly plants, beginning the week of Feb. 1, and gave no date on when production could restart.

The problem could spread to Europe, where a similar accelerator part is being used, said Toyota spokeswoman Ririko Takeuchi, while declining to give the number of vehicles affected. The company was studying possible responses, including a recall, she said.

The problem part comes from one U.S. supplier and does not affect models that use parts from different suppliers, Takeuchi said. Toyota's Japan plants are not affected.

"For Europe, the number and models potentially concerned are under evaluation," said Philippe Boursereau, spokesman for Toyota France.

The automaker said the U.S. sales suspension includes the following models: the 2009-2010 RAV4, the 2009-2010 Corolla, the 2007-2010 Camry, the 2009-2010 Matrix, the 2005-2010 Avalon, the 2010 Highlander, the 2007-2010 Tundra and the 2008-2010 Sequoia.

Toyota has said it was unaware of any accidents or injuries due to the pedal problems associated with the recall, but could not rule them out for sure.

"This action is necessary until a remedy is finalized," said Bob Carter, Toyota's group vice president and general manager.

The automaker's shares fell 4.3 percent in Tokyo trading Wednesday.

Toyota spokesman Mike Goss said most workers were expected to be at their jobs during the assembly line shutdown. Workers will receive additional training or work on improvements to their assembly processes, but can also take vacation or unpaid leave, he said.

About 300 workers who build V8 engines at a Toyota plant in Huntsville, Ala., will be affected, said Stephanie Deemer, a spokeswoman for the plant. Goss said the shutdowns will also affect engine plants in Georgetown, Ky., and Buffalo, W.Va.

Toyota dealers said they were concerned the move would hamper sales and were hopeful parts to fix the problem could be distributed quickly.

"They're going the extra mile to reassure people that they really care about the customers," said Earl Stewart, owner of a Toyota dealership in North Palm Beach, Fla. "It is something that's going to be at least a short-term hardship on the dealers, and especially on Toyota."

Mamoru Katou, analyst at Tokai Tokyo Research, said Toyota was likely reorganizing production plans, such as switching suppliers, and shipping in parts from Japan. "The problem is extremely serious," said Katou. "The models are precisely those Toyota had been preparing to sell in big numbers."

Toyota expects to sell 2.19 million vehicles in North America in 2010, up 11 percent from 2009, according to sales targets released Tuesday. Globally, Toyota said it was planning sales of 8.27 million vehicles this year, up 6 percent from 2009.

But those numbers have not figured in the U.S. sales stoppage, Takeuchi said.

The automaker's problems in the U.S. may be an extension of the spate of quality problems that plagued Toyota several years ago in Japan, its home market, during the aggressive growth strategy pursued under former president Katsuaki Watanabe.

In 2006, the Japanese government launched a criminal investigation into accidents suspected of being linked to vehicle problems, though nobody was charged. Watanabe later acknowledged overzealous growth was behind the quality problems.

Watanabe was replaced last year by Akio Toyoda, the grandson of Toyota's founder.

Tuesday's announcement follows a larger U.S. recall months earlier of 4.2 million vehicles because of problems with gas pedals becoming trapped under floor mats, causing sudden acceleration. That problem was the cause of several crashes, including some fatalities.

About 1.7 million vehicles fall under both recalls.

The auto company said the sales suspension wouldn't affect Lexus or Scion vehicles. Toyota said the Prius, Tacoma, Sienna, Venza, Solara, Yaris, 4Runner, FJ Cruiser, Land Cruiser and select Camry models, including all Camry hybrids, would remain for sale.

Toyota sold more than 34,000 Camrys in December, making the midsize sedan America's best-selling car. It commands 3.4 percent of the U.S. market and sales rose 38 percent from a year earlier. Sales of the Corolla and Matrix, a small sedan and a hatchback, totaled 34,220 last month, with 3.3 percent of the market and sales up nearly 55 percent from December of 2008.

___

AP Business Writer Greg Keller in Paris, Associated Press auto writers Ken Thomas in Washington and Tom Krisher in Detroit contributed to this report.

© 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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  • Public Discussion (11)
PhxAZMom

I'd love to see American automakers take advantage of Toyota's setback (which is pretty rare they ever have any) and generate a marketing campaign that grabs the buyer's attention.

Toyota won't be down for long. Let's see if American automakers can step up their game and produce something people love driving.

  • 1 vote
Reply#1 - Wed Jan 27, 2010 3:18 AM EST
newbroom

The problem part comes from one U.S. supplier and does not affect models that use parts from different suppliers, said a Toyota official who spoke on condition of anonymity.

sabotage?

  • 1 vote
#1.1 - Wed Jan 27, 2010 5:26 AM EST
kls illini

newbroom, that is a way of saying we are not going to take responsibility. Even though Toyota is responsible for the final product. They test a sample of every part that comes in and if they are made to spec then they assemble.

  • 4 votes
#1.2 - Wed Jan 27, 2010 7:29 AM EST
buttzie

The problem with Toyota is- as we've seen with Gm- they've gotten too big to properly handle quality issues. Car critics are really hammering the cheapness seen in Toyotas' recent new or redesigned models. I opted over the avalon for the Hyundai genesis. No regrets...as long as Hyundai doesn't follow Toyota and GM, I suspect I'll be a repeat Hyundai buyer.

  • 2 votes
#1.3 - Wed Jan 27, 2010 9:25 AM EST
Reply
Arthur Digby Sellers

I wonder if it's a throttle-by-wire gas pedal? Something always bothered me about manufacturers removing the actual throttle cable and replacing it with a computer chip.

  • 3 votes
Reply#2 - Wed Jan 27, 2010 7:39 AM EST
ScottM8

I think that they should not stop making a certain model of cars. Some people do actually have the money to buy these certain cars.

    Reply#3 - Wed Jan 27, 2010 8:07 AM EST
    Dave-494863

    Art, that would be a different recall. Toyota is blaming foor mats in that one. Yeah right. These are those millions of cars affected.

    LEXUS/ES350/2007-2010

    LEXUS/IS/2006-2010

    TOYOTA/AVALON/2005-2010

    TOYOTA/CAMRY/2007-2010

    TOYOTA/PRIUS/2004-2009

    TOYOTA/TACOMA/2005-2010

    TOYOTA/TUNDRA/2007-2010

      Reply#4 - Wed Jan 27, 2010 8:12 AM EST
      Dave-494863

      The only good Toy-yoda is the one in Star Wars.

      • 3 votes
      Reply#5 - Wed Jan 27, 2010 8:14 AM EST
      Amys1

      i think they need to test cars more and be more careful on how they build them and make sure that they are completely safe before they sell them at dealerships. people die in car accidents almost every day so they need to be more carful on how they are build and make sure there safe first for driving

        Reply#6 - Wed Jan 27, 2010 8:16 AM EST
        solomonmhealth

        I think Toyota is doing the right thing .Even though they may loose a lot of money, they are putting safety first.

          Reply#7 - Wed Jan 27, 2010 8:44 AM EST
          what america was built on

          They are beign forced to do something about it! Tehy don't give a damn about anything but the bottom line.

          • 2 votes
          #7.1 - Wed Jan 27, 2010 2:32 PM EST
          Reply
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