Toyota to Recall 242,000 Hybrids

Joe Goldman |

PriusToyota Motor Corporation (TM) announced on Wednesday that it is recalling 242,000 Toyota Prius and Lexus HS 250h vehicles. The recall is in response to what the Japanese automaker calls a brake pressure accumulator malfunction in some of its Toyota Prii and Lexus hybrids produced between March 2009 and October 2009.

Toyota decided to originally investigate the issue after some drivers reported that they had to apply an unusually high amount of pressure to use the brake. The company announced in a statement on Wednesday that some brakes are becoming inflicted with a “fatigue crack on an internal part due to vibration,” which seems to be causing the problem.

Toyota has had more than its fair share of recall problems in the past. In 2010, the company suffered a major blow to its reputation after it recalled 433,000 hybrids. The recall was the result of several incidents where the car’s accelerator became stuck to the floor, causing the vehicle to accelerate uncontrollably and kill many unsuspecting drivers.

Toyota stated in a press release that the two models have “had no reports of any accidents or injuries with this condition.”

However, the recall is still a minor blow to Toyota’s reputation as a reliable automaker. In response, shares traded down 2.5 percent to $115.29 on Wednesday, but are still up 54 percent over the last 12 months.

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Companies

Symbol Name Price Change % Volume
TM Toyota Motor Corporation 121.46 3.58 3.04 304,641
RPT Ramco-Gershenson Properties Trust 17.09 0.14 0.83 836,504

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