A week after brake problems surfaced with its Prius, Toyota still has yet to say whether it will recall the popular hybrid -- and analysts say further delays could be devastating to the automaker's already damaged reputation.
A recall would cover as many as 300,000 cars for this model year and would mean more public embarrassment for Toyota. But the alternative could be a further loss of confidence in a global market it fought for decades to dominate.
"Listening to management now, I think they still think there isn't a real problem with the Prius," Christopher Richter, an auto analyst at CLSA Asia Pacific Markets, said yesterday.
"But at this point you don't resist," he added. "Because right now any Toyota vehicle that is perceived to have a problem -- you just say, ‘We fix it.' That's how you win back the trust."
In the meantime, auto-safety experts say that driving the Prius is probably still safe but suggest extra precautions, such as allowing extra room to stop.
Kyodo news agency and the country's top Nikkei business newspaper reported yesterday that Toyota was likely to notify both the U.S. and Japanese governments of Prius recalls today. Toyota spokeswoman Ririko Takeuchi said that no decision on a recall has been made.
The report also said that Toyota was likely to announce recalls of its much smaller-selling Lexus HS250h and SAI hybrids, which use a braking system similar to the Prius.
At least 100 drivers of Prius cars in the U.S. have complained to Washington that their antilock brakes seemed to fail momentarily on bumpy roads. Toyota and the Japanese government have also received dozens of complaints in total about brake problems. The U.S. says that the problem is suspected in four crashes that caused two minor injuries.
Toyota says that a software glitch is behind the problem and says it has already fixed vehicles that went on sale since last month. It has also said that the brakes will work if the driver keeps pushing the pedal.
Any recall would come on top of the millions of vehicles Toyota has recalled since last fall because the accelerator can become stuck, either because the gas pedals themselves are faulty or because floor mats can catch them.
Still, analysts say, it may be the only way for the automaker to win back its loyal base of drivers.
"The best thing for Toyota to win back consumer trust is to recall vehicles as quickly as possible," said Mamoru Kato, an auto-industry analyst at Tokai-Tokyo Securities.
Toyota had an opportunity to clear the air and appear in control at a press conference last week by Akio Toyoda, the company president and grandson of its founder. His appearance, in which he apologized to Toyota customers, was panned by Japanese media for coming too late and for not saying what he would do to fix the problems.
There are options besides a recall. Toyota has said that one choice is a service campaign in which owners would be notified to bring their cars in for repairs. Toyota is in talks with the National Highway Traffic Safety Administration on how to handle the fix.
Car appraiser Kelley Blue Book dropped the resale values of recalled Toyotas for the second time in four days, leaving them as much as 4 percent or $300 to $750 lower than a week ago, depending on the model.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement