The world's biggest carmarker suspends US sales of eight models, including the Corolla, subject to a massive safety recall.
Toyota recalls eight models in the US
TOKYO / DETROIT // Toyota will suspend US sales of eight models subject to a massive safety recall, an unprecedented move that sent its shares tumbling and raised questions about the timing of its earnings recovery. Toyota said it would also halt production of the models at plants in the United States and Canada in the first week of February. The sales suspension and recall includes Toyota's top-selling vehicle in North America, the Camry, for model years since 2007.
Also included are the 2009-2010 model year RAV4, Corolla and Matrix, the 2008-2010 model year Sequoia, the 2007-2010 model year Tundra, the 2005-2010 model year Avalon and the 2010 model year Highlander. Last week, Toyota announced it would recall 2.3 million vehicles in the United States to fix potentially faulty accelerator pedals, its second large recall in four months in the United States, its biggest market.
The series of recalls threaten to damage Toyota's reputation for safety and quality that helped it ascend to the top of the global auto industry. Michelle Krebs, a senior analyst at Edmunds.com, said: "This unprecedented automotive decision indicates how serious a safety problem this is. "We've gone from floor mats to recalls for wear items to a full shutdown, and I can't help but think that the company's credibility is being called into question."
Toyota said the production halt would initially last a week before being reviewed. Officials could not recall a sales or production suspension resulting from vehicle defects on such a scale. Toyota is considering whether it needs to issue a recall in Europe as well, where the same parts are used for some models. Shares in the world's biggest automaker suffered their biggest slide in eight months, falling 4.3 per cent in a Toyko market down 0.7 per cent on Wednesday.