Japanese investors add to Toyota's problems; US House of Representatives will investigate
29 January 2010

Toyota’s shares in Japan have fallen 16.7 per cent in five days as investors shy away from the firm, which has had to recall of millions of its cars due to a faulty accelerator pedal.

Toyota has recalled more than eight million vehicles affected by the problem in the US, and sales of some popular models suspected of having the fault have now been suspended.

Yesterday Toyota confirmed this recall would extend to Europe and China, after it was revealed models sold in these regions were also affected.

Shares in Toyota can now be bought for 3490 Japanese yen (£23.97) after six consecutive working days of decline.

One Japanese industry analyst has warned that the full cost of the problem to Toyota may not become clear for several weeks.

“Toyota's stock might fall further until the impact on earnings and profits from the recall becomes clear," said Hiroaki Kuramochi from Tokai Tokyo Securities.

The US House of Representatives has also confirmed its intentions to “examine the persistent consumer complaints of sudden unintended acceleration in vehicles manufactured by Toyota Motor Corporation”.

The hearing will take place on 25 February.

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Comments
15

29 January 2010

I think we need a bit of perspective here. Cars have suffered sticking throttles ever since they were invented, just like tyres get punctures and springs occasionally collapse (actually quite frequently in the latter case, but manufacturers don't seem to be doing much about it...) Granted these things should not happen, but a sticking throttle is rarely dangerous. There is not a car made where a light touch of the brakes will not swiftly bring things under control. And Toyota has acted responsibly, with a recall no doubt out of proportion to the number of affected cars. I for one would still have no hesitation in buying a Toyota, even it it was one of their recalled models! (I have no connection with the company, incidentally)

29 January 2010

Agree. While it's always tragic that people loose their life, this problem is blown out of proportions. It's actually a lesser problem than the break issue that Ford has had for years. But because of the large scale recall, which as you pointed out is the responsible thing to do, it has gotten more attention than other, more serious and frequent problems. And since it's Toyota, the american press is all over it. And not only the press, but the american authorities as well.

The funny thing is, that the part that is supposed to cause the malfuntion is made in Canada or USA. There are no problems with the same part made in Japan

29 January 2010

I concurr.

Toyota acted responsibly, perhaps even too much and immediately stocks fell down (financial question: I dare to wonder if its stock is cheap enough to be a bargain...). They know how to make good cars, although quality is not what it used to be, at least of those non-Japan built Toyotas.

I am not partial to conspiracy theories, but somehow this whole issue happened in exact right time, to give GM and Ford sales boost....coincidence?

Same governmental agenciss in USA neglected some 16 million Ford cars being built with faulty transmisions at the beginning of 'Eighties and never issued a recall! (more about this in "Savage factory" great book by Robert J. Dewar). And now they act very responsibly, when Toyota makes a mistake? One wonders...

29 January 2010

@ LP in Brighton

"I think we need a bit of perspective here"

Let me see, Toyota is believed to have known about this fault since 2004
and have done nothing about it, it's been linked to 20 deaths in the US so
far and still Toyota failed to act, only after intense hostile media coverage
in the US (strangely lacking here) do they decide to act with a token
replacing of floor mats, further deaths ensue and it's only
when the NHTSA are about to step in that Toyota takes the unprecedented
step of halting sales of virtually all of their Cars.

To me the "Perspective" is just about fine.

Leyland built cars were but together by chimpanzees but at least they didn't
try to kill you, if this was Jaguar or Land Rover the media in this
country would be rounding up a lynch mob.

It must be a busy day on the PR desk Brighton!

29 January 2010

[quote LP in Brighton]Granted these things should not happen, but a sticking throttle is rarely dangerous[/quote]

Maybe in ye olden days but obviously not now. Most cars are fly by wire and don't have a throttle cable.

[quote LP in Brighton]There is not a car made where a light touch of the brakes will not swiftly bring things under control[/quote]

Try telling that to the loved ones of those who've died. Why don't you search out and listed to the 911 call from a passenger in the Lexus as they travelled at 120mph to their deaths. The brakes had no effect and the car would not turn off.

Toyota has known about this problem for an age and done nothing about it. We are (were) all potential Toyota drivers so shouldn't there be some sort of enquiry?

If you drive a Toyota/Lexus I'd be worried because they haven't released details of which cars are effected yet.

29 January 2010

[quote cornflakes99]Leyland built cars were but together by chimpanzees but at least they didn't
try to kill you,[/quote] My parents' 88 Rover 800, 89 Metro, 83 Metro and a Maestro (courtesy car) all almost killed me, my parents and my family. Engine mounts snapping, brakes failing, suspension collapsing, engines dying on the motorway. All of those. All the cars were properly maintained and carefully driven. The Maestro was the courtesy car for while the metro that almost killed us was being repaired - it was lethal.

29 January 2010

"The funny thing is, that the part that is supposed to cause the malfuntion is made in Canada or USA. There are no problems with the same part made in Japan"

In truth, the unfunny thing here is that the automakers determine the specs of all parts that they request to production to all their suppliers.

Even taking into account that the CTS made pedals are wrong, Toyota has the responsability to provide them, years in a row, the OK check, so the face now is the Toyota face not the CTS face.

Regarding "the same part made in Japan" mind you that several cases have been noticed here in Europe and guess what? in the Prius - the car is made Japan-only for worldwide...

I will not be so shure about the cars made in Japan...

we should see in a couple of days/weeks, several made in Japan Toyota, Lexus and the likes named into question.

Hopefully I do not drive any Toyota related car.

But I will stick behind them... in the front , it is too dangerous.

29 January 2010

[quote Lee23404]as they travelled at 120mph to their deaths. The brakes had no effect and the car would not turn off.[/quote]

It would be useful if there was a supporting article "How to stop your car if the throttle sticks".

29 January 2010

[quote coolboy]

Hopefully I do not drive any Toyota related car.

But I will stick behind them... in the front , it is too dangerous.

[/quote]

Ha ha - The Car in front is a Toyota,

To which you respond:

Damn right, its too dangerous out in front of those things!

29 January 2010

On checking my service records of the LS 460 I drove, it was recalled on April 08 on this problem and adapted at 19,000 miles. I was given a bottle of wine and free refuel for the inconvenience.

It never had a sticking throttle.

Now Toyota shares are have fallen because of public fear enhanced by the ignorant and stupid. Toyota, as a Corporation do not deserve this and no matter how you legislate for such events you will never prevent such occurrences.

As someone has said, what is needed is a sense of perspective. The victims of this unhappy event will not be the only victims, as we will find out later.

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