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Toyota certainly won't be smiling at its faulty reputation. Photo Courtesy: AP.
Toyota faults again: 270,000 poor engines
Thu Jul 01 2010 01 : 07 / Tokyo
Toyota has been working to patch up its reputation after recalling more than 8 million vehicles worldwide because of unintended acceleration and other defects.

Toyota Motor Corp. said on Thursday about 270,000 cars sold worldwide — including luxury Lexus sedans — have faulty engines, the latest quality lapse to hit the automaker following massive global recalls.

Japan's public broadcaster NHK and Kyodo News agency said Toyota, the world's No. 1 automaker, was considering recalling the vehicles but didn't name sources.

Stall pall

Toyota spokesman Hideaki Homma said the company was evaluating measures to deal with the problem of defective engines that can stall while the vehicle is moving. He would not confirm a recall was being considered.

Of the 270,000 vehicles with engine problems, some 180,000 were sold overseas and the rest in Japan. They include the popular Crown and seven models of luxury Lexus sedans.

Toyota said there have been no reports of accidents linked to the faulty engines. It did not say how it learned about the engine troubles.

Announcement impact

The automaker's shares fell 1.1 percent to 3,045 yen in Tokyo on Thursday.

U.S. authorities recently slapped Toyota with a record $16.4 million fine for acting too slowly to recall vehicles with defects. Toyota dealers have repaired millions of vehicles, but the automaker still faces more than 200 lawsuits tied to accidents, the lower resale value of Toyota vehicles and the drop in the company's stock.

In the aftermath of the recalls, Congress is considering an upgrade to auto safety laws to toughen potential penalties against automakers, give the U.S. government more powers to demand a recall and push car companies to meet new safety standards.

Toyota said last week it will recall 17,000 Lexus luxury hybrids after testing showed that fuel can spill during a rear-end crash.
 

Agency/Source 
Associated Press
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Viewers Comments

I never expected this from TOYOTA..Carelessness At The TOP..hope this'll Not happen again..

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