Yet another Toyota recall has been announced. Image from Wikimedia Commons.

A lot of automotive recalls have happened this year. Perhaps the most high profile of automotive recalls so far this year was the infamous Toyota recall involving a defective accelerator pedal. If the automaker can be credited for one thing, it is consistency, as another Toyota recall is in effect. This recall may not be as pervasive, as fewer vehicles are involved. Only a few model years on two different cars offered by the automaker have the defect in question. However, as Toyota is trying to recover from the earlier recall and fallout, this will be a setback.

Yet another Toyota recall

There have been several recalls from Toyota. New Toyota recalls are starting to become more regular than full moons, and a new Toyota recall has just been announced. The problem being addressed by this Toyota recall is with the engines in more than 1.3 million vehicles. There is a problem with the engine control module. The defect can affect shifting or cause the engine to stall while driving and keep the motor from starting, according to CNN. A small number of accidents may have resulted from this problem.

More than 1 million cars to be fixed

The models in question are the Toyota Corolla and the Toyota Matrix. The model years are from 2005 to 2008. The defect in the 1ZZ-FE engine is in the circuit board in the Engine Control Module, where the circuit board can crack. This defect affects the shifting and can cause the engine to shut off while driving. Engines may also be unable to start. There are 1.13 million vehicles in the U.S. and another 200,000 in Canada that could be affected. According to the Los Angeles Times, this will bring the number of vehicles Toyota has recalled this year to about 10 million. The National Highway Traffic Safety Administration is investigating these models.

After years of market share Toyota can do no right

Toyota, in the past few years, had captured market share of U.S. auto sales. The lead was tenuous at best, and this may be the straw that breaks the camel’s back. Ford, General Motors, and Chrysler would be happy to take some of those customers back.

Further Reading

CNN

Los Angeles Times

Tesla Motors cars aren't powered by a Tesla coil, but the late physicist would probably love them anyway. Image from Wikimedia Commons.

It was announced last week that Toyota would be purchasing a large stake in Tesla Motors, the electric car manufacturing firm. Tesla specializes in high-end, all-electric roadsters, including an electric sports car capable of doing more than 100 miles per hour.  Its flagship model, the Tesla Roadster, is capable of going from 0 to 60 in less than four seconds, which is a considerable feat for any car.  The company had experienced lagging revenues, and the deal was announced ahead of an Initial Public Offering to boost revenue.

The Toyota Tesla deal

Toyota is already one of the leaders in the field of hybrid cars, as the Toyota Prius retains the top spot for hybrid sales. Boutique electric car company Tesla Motors announced an IPO was forthcoming as it needed to raise capital, and Toyota has thus far pledged $50 million. According to the New York Times, Tesla Motors had suffered losses of more than $56 million in 2009, and it filed for an Initial Public Offering of stock to boost capital.  The Tesla Roadster starts at about $109,000, so auto loans for the car are considerable.

The flagship Tesla Roadster

The claim to fame for Tesla Motors is the Tesla Roadster, the fastest production electric or hybrid car.  The basic model is capable of going from 0 to 60 miles per hour in 3.9 seconds. The slightly faster Tesla Roadster Sport is capable of the 0 to 60 miles per hour feat in 3.7 seconds, but costs about $20,000 more.  Granted, that is not exactly a time for the record books, but it is as far as hybrid and electric cars are concerned.  (For the record, the fastest domestic stock production car from a major manufacturer is the Chevrolet Corvette ZR1.)

This is good

This is an excellent move for Toyota, and for Tesla.  Tesla is a green manufacturer, already producing an eco-friendly sports car, and soon the company will start manufacturing the Tesla Model S, a family sedan that will retail for less than $60,000.  Part of the Toyota venture is allowing the Model S will be manufactured at the NUMMI manufacturing facility, which was recently closed.  It appears a Tesla of any sort creates sparks wherever it goes.

Reconsider the Lexus GX 460, which Consumer Reports found prone to rollovers like this one

The Lexus GX 460 earned a rare “don’t buy” warning from Consumer Reports following performance testing by the magazine. If you thought about getting auto financing to buy one, bear in mind that the tests exposed a handling problem with the Lexus GX 460 that may cause a rollover of the SUV in everyday driving. The Consumer Reports test of the Lexus GX 460 is the latest black mark to Toyota Motor Corp’s battered reputation that began last year with braking and unintended acceleration problems.

Lexus GX 460 earns Toyota a rare rebuke

The Lexus GX 460′s stability problems became evident when the rear of the vehicle broke away during what David Champion, the senior director of the Consumer Reports auto test division, said were “unusual turns.” The Lexus GX 460 skidded sideways through the turn before the SUV’s electronic stability control engaged. In an interview with the New York Times, Champion said “This is the first time we have seen it in an SUV with ESC,” referring to electronic stability control. Consumer Reports said it was “rare” for the magazine to “judge a vehicle’s performance not acceptable.” The last instance was with the 2001 Mitsubishi Montero Limited in 2001.

Lexux GX 460 unsafe in everyday driving

The Lexus GX 460 rollover potential goes beyond the test track. Mr. Champion told the New York Times that the Lexus GX 460 electronic stability control could fail in everyday driving. For example, speeding through a sharp curve on a highway off-ramp. The Lexus GX 460, with a high center of gravity, could easily roll hitting a curb or soft shoulder. “I wouldn’t want anyone else in it,” Champion said.

Dozens of SUVs safer than the Lexus GX 460

When it comes to committing to an auto loan for your next SUV, there are plenty of safe choices. Consumer Reports tested dozens of SUVs in addition to the Lexus GX 460. To cause what consumer Reports calls “trailing-throttle” or “lift-throttle oversteer,” the driver takes his foot off the gas while driving fast through a sharp turn. While the Lexus GX 460′s rear end slid toward the outside of the turn, electronic stability control quickly stopped the slide in the other SUVs.

Lexus GX 460: low volume could drop further for Toyota

Before Consumer Reports called out the Lexus GX 460 for rollover danger, Toyota wasn’t selling too many of them. Starting at about $52,000, the GX 460 is a small-volume vehicle for Lexus, Toyota Motor Corp.’s luxury brand. Only about 5,000 have been sold since November 2009. But the warning is the last thing the embattled automaker needs as it struggles to fight a litany of bad press. But the true impact could be seen as fewer car buyers borrow money to purchase any SUV manufactured by Lexus.

The recession and the automobile industry

The recession has been chronically difficult on the automobile industry and having this type of recall at its tail end is not good news for the Japanese automaker. According to Toyota’s released statistics, the recall is affecting over 4.4 million cars worldwide, with 2.48 million of them in the US. It includes some of the best selling brands like the Camry and Corolla. The issue involves the floor mats catching the gas pedals to create potentially dangerous situations. Part of the reason for the vastness of the problem is due to the similar parts the Japanese automaker uses for various brands of its cars. To cut costs, it creates similar parts in mass quantities and then uses them for a wide variety of its vehicles.

Did Toyota lag in responding?

Critics believe the company was inefficient with dealing with the recall. Masaaki Sato, author of various books reviewing Japanese automakers, told the Associated Press that he believes company president Akio Toyoda should have immediately given a public explanation of what happened. Sato (see http://www.huffingtonpost.com/2010/02/02/toyota-recall-could-have_n_445531.html) said, “He should have rushed over to the US or called a news conference in Tokyo. Toyota underestimated the seriousness of the problem.” In fact, looking back Toyoda largely ignored the issue and the media’s persistent request for some response. Since the time the issue was discovered, the company has made an announcement. In Davos, Switzerland, president Toyoda finally addressed the issue in hopes to repair customer perception and increase fast cash with new revenue.

Pressure from the US National Highway Traffic Safety Administration

The fix for the pedal-mat issue is to install a steel shim several millimeters thick in the pedal assembly. This should create a buffer and eliminate excessive friction between the two pieces. Though the solution is so far effective, Sasaki acknowledged the company lagged in decision making. He added, “We put our customers first. But what happened as a result may have been unfortunate. But we stuck to our view to the end.” He also confirmed that the decision to have a recall came with pressure from the US NHTSA. The company has known about the recall since 2007, and that is what caused the highway authority to increase its demands.

The recall in 2010

Though it took three years for the recall to happen, it has yet to be seen what consumer perception is now that it finally is happening. Auto manufacturers experienced a particularly difficult recession and monitoring cash now is more important than ever. Hopefully in the future companies will know how to handle issues like recalls more tactfully.

(Photo Credit: http://www.flickr.com/photos/danielctw/ / CC BY 2.0)

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