Toyota Motor has expanded its massive recall in the United States by more than a million vehicles to replace floor mats that could trap accelerator pedals, in a fresh blow to the Japanese manufacturer.
The latest move, which covers 1.093 million vehicles, comes on top of a recall of about 4.2 million cars and trucks by Toyota in November.
The company said late Wednesday that five models had been added to the recall: the 2008-2010 Highlander, the 2009-2010 Corolla, the 2009-2010 Venza, the 2009-2010 Matrix and the 2009-2010 Pontiac Vibe.
In a further setback to the world’s largest automaker, Fitch Ratings put a negative outlook on Toyota’s long-term bond rating of “A-plus” — the fifth highest on a scale of 22 — signalling a possible downgrade in the future.
“The recalls and sales and production suspension cast a negative light on Toyota’s reputation for quality, just as the company emerges from an unprecedented downturn in the auto industry,” Fitch analyst Jeong Min Pak said.
Toyota shares tumbled 3.91 percent to 3,560 yen Thursday, after a drop of 4.26 percent the previous day in response to the group’s decision to suspend sales in United States of eight models due to the safety concerns. Related article: Toyota halts US car sales over safety
The Japanese manufacturer has long prided itself on rigorous safety controls but has been bedeviled by a series of quality issues.
Separate from the floor mat trouble, Toyota last week recalled 2.3 million cars and trucks because of problems with sticking accelerator pedals.
The company said that in rare cases, the pedal mechanism could become worn and harder to depress or stuck in a partially depressed position. Toyota said Monday the recall might spread to Europe.
The move will not affect owners in Japan because the parts at the centre of the recall are not used in vehicles produced there, said Toyota spokesman Paul Nolasco.
Toyota ended General Motors’ 77-year reign as the world’s largest auto maker in 2008 but the road has been a bumpy one for the Japanese giant, long lauded for its vehicles’ safety and reliability.
The company expanded rapidly over the past decade to meet strong demand, prompting critics to question whether it might have sacrificed its legendary quality in its quest to become the global number one.
“Toyota’s image has worsened quite a lot because (the recalls) have tarnished the company’s reputation for quality, which was the source of its strength,” said SMBC Friend Research Centre auto analyst Shigeru Matsumura.
“Toyota’s strategy was to expand its share in the North American market due to the problems of General Motors and Chrysler. Now, because of these recalls and the sales suspension, it stumbled in its efforts. This has provided a new opportunity for carmakers like GM,” he said.
Aiming to regain some of its lost market share, General Motors said Wednesday it would give owners of Toyota cars and trucks 1,000 dollars or free financing if they buy one of the US firm’s models by the end of February.
“Dealers have been getting a lot of queries from customers who have expressed worries about their Toyota vehicles,” said a GM spokesman in the United States. “We want to be able to take advantage of that interest.”
