Friday, July 2, 2010

Lexus recall will cost Toyota a Huge Fortune

Japanese automaker, Toyota is in real trouble. The company has been facing problems for producing faulty cars.
In January 2010, Toyota recalled 2.3 million vehicles over faulty accelerator pedals and of those, 2.1 million vehicles were floor mat recall.
In late 2009, the company recalled 3.8 million Toyota and Lexus models due to floor mat problem.
On July 2, 2010, Toyota recalled its Lexus models over faulty engine in Japan. This came as a shock to the Toyota officials in the U.S for they were not prepared for this. Of the total 2,70,00 Lexus models, 1,37,000 had been sold in the U.S.
The U.S. Lexus models- IS 350, GS 350, GS 460, GS 450h, LS 460, LS 600h L contains faulty valve springs which could cause stalling in traffic. The company has not yet given out the model years or dates of manufacturing.
Toyota spokesman, Paul Nolasco said that action for U.S and other overseas markets will come next week. He said that his company had informed Japan’s transport ministry of a recall of the 90,000 vehicles in Japan but U.S officials could not give out any specific plan of action.
Mark Templin, Lexus U.S. sales chief said that drivers “in most cases” will have warning signs such as rough idling or engine noise.
The repair of the vehicl would cost Toyota a whopping $227 billion.

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