Toyota recalls 670,000 Prius hybrids

Toyota recalls 670,000 Prius hybrids

Toyota recalls 670,000 Prius hybrids
Toyota recalls 670,000 Prius hybrids
Toyota is recalling the second generation Prius hybrids to fix steering and water pump defects. The affected hybrids are from 2004 to 2009 model years.

The Prius recall is part of 2.7 million vehicle recall worldwide. Some Corolla models are affected as well.

While no accidents have been reported, Toyota is issuing the safety recall and will be notifying the affected customers by December.

For the steering defect, Toyota said that the part which connects steering gearbox and shaft can deform over time. Dealers can perform inspection and fix in one hour, at no charge to the owners.

The more serious defect is the water pump for the hybrid system. The electric motor that pumps coolant through the hybrid system can stop, and the whole vehicle could stop functioning, even when it is in drive.

On a separate note, Toyota announced that the company settled a lawsuit by the investors for $25.5 million. The lawsuit involved the recalls from a couple of years ago, with the sudden and unintended acceleration. The investors claimed that Toyota failed to disclose safety and quality issues.

Toyota has been facing a lot of challenges with the vehicles it developed from the late 1990s to mid-2000s. That is the period that Toyota experienced a large expansion of sales and product portfolio, and some argued that Toyota had lost its focus on the core competency of legendary reliability record.

After the debacle, Toyota's new president Akio Toyoda, the grandson of the founder, promised sweeping changes. Toyota's new products look promising with impressive initial quality survey results, but it will take about five years to see if Toyota has indeed made a full quality turnaround.



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