SAFAR 21 1431 A.H.
FRIDAY FEBRUARY 5, 2010.
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Toyota rues Prius brake software problem
Troubled carmaker Toyota has admitted a software problem in the new Prius's brakes, but says it has now been fixed.
Toyota's managing officer, Hiroyuki Yokoyama, said the company had found a clash between the anti-lock brake system (ABS) and regenerative braking.
He added: "This issue shows that we may have fallen short of the standards expected of us by our customers."
Toyota is recalling up to 1.8 million cars in Europe over a separate problem concerning faulty accelerator pedals.
More than 180,000 cars are being recalled in Britain alone in the move, which follows a series of similar measures in the US and around the world.
Mr Yokoyama said the clash occurred under limited circumstances, including on frozen surfaces.
As depressing the brakes further activated normal braking, the glitch was not legally a safety hazard.
Toyota said it would notify drivers of its plans for specific steps in the near future to ease consumers' minds.
Mr Yokoyama would not say whether that would exclude an official recall.
Profits surge Earlier, Toyota, which is the world's biggest carmaker, reported a huge swing back into profit in the last quarter of 2009.
Its net income was 153 billion yen ($1.68bn; £1.06bn) after a loss of 164 billion yen a year earlier.
Toyota confirmed its estimate that it would lose about $2 billion (£1.23bn) in costs and lost sales from its worldwide recall of potentially faulty vehicles.
Toyota in the UK says it will be nearly a week before it can start repairs on cars with defective accelerator pedals.
However, the firm said it still expected higher sales.
Its forecast last November was for sales of 7.03 million - and despite the heavy blow to the company's reputation, it now thinks it will sell 7.18 million in the next financial year.
Back in the black Toyota also says it will make a profit this year. It had been prepared for a loss - and that was before the crisis.
It added it had not yet worked out the cost of the latest reports of brake problems with the new Prius.
Shares in Toyota have hit their lowest level for 10 months on the Tokyo Stock Exchange with continuing concern about the safety of the company's vehicles.
The firm has recalled more than eight million vehicles globally because of problems with defective accelerator pedals on seven models and a separate problem in the US - also acceleration-related - to do with pedals sticking in floor mats.
A day after falling 5.7 per cent, Toyota shares fell a further 3.5 per cent on the Tokyo Stock Exchange on Thursday morning and hit their lowest level for 10 months.
The shares have now lost about 22 per cent of their value since January 21, when the company announced the recall of some 2.3 million vehicles in the US amid concerns that their accelerator pedals could become stuck. It is also recalling up to 1.8 million cars across Europe, including 180,865 in the UK.
The seven models being recalled in Europe are the Aygo, iQ, Yaris, Auris, Corolla, Verso, and Avensis, and cover manufacturing dates going back to February 2005. In the US, they are the RAV4, Corollas, Matrix, Avalons, Camrys, Highlander, Tundra, and Sequoia, and cover dates going back to October 2005.
