Despite recent protestations by a senior Toyota executive that the worst of the maker’s safety problems are behind it, the Japanese giant is getting 2011 off to a shaky start.
The potentially faulty installation of fuel pressure sensors is forcing the maker to recall 245,000 sedans in the U.S. And, unusually, the recall is significantly larger overseas, where repairs will be needed on another 1.5 million Toyota vehicles – for a total of more than 1.7 million products.
The overseas recalls involves vehicles with defects that could lead to a gasoline leak, Toyota revealed.
The U.S. recall involves 2006 and 2007 Lexus GS 300 and GS 350 models, 2006 – 2008 Lexus IS 350 sedans, and 2006 – 2009 IS 250 models. A wide range of passenger cars, minivans and crossovers are being called back in Europe and Japan, including the maker’s Japanese premium model, the Toyota Crown.
In a Detroit appearance, earlier this month, Toyota’s top U.S. executive suggested that the maker has “regained” some of the ground it lost last year as a result of its seemingly endless series of safety issues. They included problems not only with so-called unintended acceleration, but also brake and steering issues and even excessive corrosion that could cause parts to fall off Toyota Sienna minivans.
Every single product in the maker’s line-up was impacted last year and Toyota made several record payments to settle fines levied by U.S. automotive safety regulators for failing to respond to safety problems in a timely matter.
Following Lentz’s Detroit speech, analyst Jim Hall, of 2953 Analytics, warned that, “The worst is over…until something else comes up.” While the steady stream of headlines may not draw the same level of attention as a year ago, he and other analysts suggest, it becomes more difficult for Toyota to rebuild its once polished reputation for building safe, reliable vehicles.
A significant test will come, next week, when the maker announces its January sales numbers. Toyota was the only major maker to report a decline in volumes during the final three months of 2010. Worldwide, the maker this week reported numbers showing it was still the best-selling carmaker last year, but the gap between it and second-ranking General Motors had slipped to barely 30,000.