GAMike
12-02-2009, 08:29 AM
Will You Think Twice Before Buying Toyota?
By Andrea Tse 12/02/09 - 07:57 AM EST
(TheStreet) -- Once upon a time, Toyota(TM Quote) was hailed for the safety and reliability of its vehicles.
In recent years, the world's largest automaker by sales has had a hard time living up to that reputation. And last week the company announced its biggest recall ever, involving 3.8 million vehicles in the US. The trigger for the recall was the high-speed crash of a Lexus vehicle that occurred when the driver's gas pedal got stuck in the floor mat. The unintended acceleration killed a California highway patrolman and three of his family members. Since then, it has been revealed that there had been thousands of incidents connected to gas petals that may had been snagged by floor mats in Toyota vehicles. Sixteen people may have died as a result, and hundreds more injured according to the Washington Post, citing a safety consultant who has investigated the Toyota cases.
The company had previously issued a consumer safety advisory back in September and noted that it had already begun to mail safety notices to the affected car owners at the end of October.
Toyota announced on Wednesday that car dealers will begin making the replacements in April, while offering to modify the existing pedals beginning in January. The company has not disclosed the expected cost of the recall, although analysts expect it to be high.
Toyota spokesmen say they are confident that the company has thoroughly addressed its latest problem, but is that enough reassurance for its customers -- or investors?
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By Andrea Tse 12/02/09 - 07:57 AM EST
(TheStreet) -- Once upon a time, Toyota(TM Quote) was hailed for the safety and reliability of its vehicles.
In recent years, the world's largest automaker by sales has had a hard time living up to that reputation. And last week the company announced its biggest recall ever, involving 3.8 million vehicles in the US. The trigger for the recall was the high-speed crash of a Lexus vehicle that occurred when the driver's gas pedal got stuck in the floor mat. The unintended acceleration killed a California highway patrolman and three of his family members. Since then, it has been revealed that there had been thousands of incidents connected to gas petals that may had been snagged by floor mats in Toyota vehicles. Sixteen people may have died as a result, and hundreds more injured according to the Washington Post, citing a safety consultant who has investigated the Toyota cases.
The company had previously issued a consumer safety advisory back in September and noted that it had already begun to mail safety notices to the affected car owners at the end of October.
Toyota announced on Wednesday that car dealers will begin making the replacements in April, while offering to modify the existing pedals beginning in January. The company has not disclosed the expected cost of the recall, although analysts expect it to be high.
Toyota spokesmen say they are confident that the company has thoroughly addressed its latest problem, but is that enough reassurance for its customers -- or investors?
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