Toyota Announces Massive Prius Recall

(Feb. 9) -- Toyota Motor Corp. issued another recall and another apology today, calling 437,000 of its once-prized 2010 Priuses and other hybrid models back to dealerships worldwide over a brake problem.

The Prius brake glitch, caused by a software issue, is the latest blow to an embattled Toyota, which since late last year has recalled more than 8 million vehicles in three separate safety recalls, including one last month over faulty gas pedals and one in September addressing floor mats that may trap accelerators. The Prius was the best-selling car in Japan last year and is a top seller in the U.S.

The latest recall forced the leading carmaker to do more damage control at a news conference in Tokyo today, with Toyota President Akio Toyoda admitting the automaker is "not omnipotent."

"I don't see Toyota as an infallible company that never makes mistakes," Toyoda said. "We will face up to the facts and correct the problem, putting customers' safety and convenience first."

In the United States, the recall affects approximately 133,000 Priuses and 14,500 Lexus HS250h hybrids, whose two-stage anti-lock brake system may delay slightly in snowy or icy conditions. Toyota said the brakes "seem to soften for a split second" as newer, regenerative braking technology switches to a traditional hydraulic brake system.

Toyota emphasized that the brake issue does not equate to a "brake failure" for drivers, but there have been about 200 complaints in the U.S. and Japan over the issue.

The automaker halted production of the Prius for the rest of the week to focus its efforts on repairs. Production of the Lexus model and the Sai, which is sold exclusively in Japan, will temporarily cease as Toyota corrects the software glitch that causes the brake delay.

On its company Web site, Toyota assures customers they are mobilizing dealerships, many of which are willing to work 24/7 to correct the problem.

"We're committed to doing everything we can -- as fast as we can -- to restore consumer trust in Toyota, and these recalls are part of this effort," Jim Lentz, president and chief operating officer of Toyota Motor Sales, said in a statement. "We regret the inconvenience this recall will cause to Prius and HS250h owners, and will do our best with the support of our dealers to make sure that it is conducted in the most trouble-free manner possible."

The National Highway Traffic Safety Administration opened a formal investigation into the Prius' brake difficulties last week in response to consumer complaints about the model, including four reports of alleged crashes.

"When I spoke with Toyota President Akio Toyoda last week, he assured me that his company takes U.S. safety concerns very seriously. The U.S. DOT will remain in constant communication with Toyota to hold them to that promise," U.S. Transportation Secretary Ray LaHood said in a statement today. "If you are concerned about your car's braking performance, contact your Toyota dealer."

According to Toyota, the repair will take about 40 minutes per vehicle, as dealerships update the brake software. Repairs begin Wednesday in Japan, while customers in the U.S. will receive letters to begin scheduling appointments with dealers.

Though Toyota's president has publicly apologized for the larger safety recalls and the company has reached out with a mea culpa television ad, rebuilding its tarnished reputation will present a challenge for the company.

Japan's transportation minister, which urged a recall since Toyota first acknowledged the Prius brake problem last week, said Toyota should have taken action sooner.

"If the company had paid more attention to consumers' viewpoint, it could have realized that there was a safety problem," Ryusuke Itazaki told reporters in Tokyo.

Toyota's quality crisis did not seem lost on Toyoda, who read from an English statement at today's news conference.

"We will do everything in our power to regain the confidence of our customers," he said.