It is no secret that Toyota and Tesla have joined forces to develop an all electric Rav4 that they hope will shake up the electric vehicle market. Tesla has already delivered a working RAV4 EV to Toyota earlier this summer and will debut it to the public at the Los Angeles Auto Show.

The vehicle is likely to be one of the stars of the Auto Show, which traditionally hosts “green” vehicle debuts. GM’s Chevy Volt and Nissans Leaf will also be there, but Toyota’s Rav4 hopes to attract the consumer who wants an electric vehicle, but wants something bigger than a compact car.

An intensified investigation into complaints of stalling engines has lead Toyota to recall over one million 2005-2008 Corolla sedans and Matrix wagons. The recall will also include 2005-2008 Pontiac Vibe vehicles. No other Toyota or Lexus vehicles are involved in the recall.

The problem is being blamed on an improperly manufactured engine control unit (ECU) which could lead to the check engine light coming on, hard shifting, the engine not starting or stalling while driving. Toyota has known about this problem since 2005 when it issued a technical service bulletin (TSB). At the time, if a customer came in with any of the above complaints, the ECU was replaced under warranty. If the warranty was up, it was left to the discretion of the dealership whether they would pay for it or not. Now that there has been an official recall the automaker will reimburse customers who paid for the fix.

Toyota and GM will mail owners notices starting in middle September. The ECU will be replaced on all of the recalled vehicles free of charge.

A recall has not been issued yet, but U.S. safety regulators are intensifying an investigation into complaints of stalling engines on Toyota Corollas and Matrix hatchbacks. The preliminary probe begun last November when the NHTSA received complaints for 2006 models, but the problem has been expanded to include almost 1.2 million 2005-2007 Corolla and Matrix cars.

The problem is being blamed on an improper coating on the engine control unit (ECU) circuit boards that lead to cracks in the coating. The NHTSA has received 163 complaints of stalling engines as of last week. It is unclear whether the investigation will lead to a recall.

Despite the bad economy and the multiple safety recalls, Toyota has posted a $2.2 billion quarterly profit, the biggest in two years. While automobile manufacturers have been struggling to make a profit, Toyota sales in North America, Japan, and other Asian countries ended up being higher than what was first forecast. Analysts say that consumers have been buying Toyota due to their sale incentives such as zero percent financing and added free options. The company has also received government incentives for green vehicles such as the Prius hybrid. Whatever it is, it has caused the company’s shares to increase two percent. With Toyota’s increased awareness of safety and recalls, the company can’t help but to come out stronger.

Toyota announced Thursday that they will be recalling 373,000, 2000-2004 Avalon sedans as well as 39,000 2003-2007 Lexus LX470 SUVs for two unrelated steering system defects.

The defect in the Avalon Sedan is being blamed on an improper casting in a component of the steering lock system. If the steering is turned hard to the right, the component may break, resulting in the steering locking up. There have been six reports of the problem in the U.S. Three resulting in accidents with no injuries.

In the Lexus LX479 SUV, the snap ring on the steering shaft may disengage when the vehicle experiences an impact to the front wheel, such as hitting a pothole. Over time, this may cause the steering shaft to disengage. Toyota was not aware of any accidents resulting from the Lexus steering-shaft problem.

In announcing the latest recall, Steve St. Angelo, Toyota’s chief quality officer for North America, said the automaker was “continuing to work diligently to address safety issues wherever they arise and to strengthen our global quality assurance operations so that Toyota owners can be confident in the safety of their vehicles.”

Toyota has been subpoenaed again by a grand jury, this time for documents related to steering relay rods. A probe was launched when the National Highway Traffic Safety Administration (NHTSA) received documents indicating that Toyota had potentially misled the government in 2005 over problems with steering linkages in its 1989-95 4Runner and the 1993-98 T100 vehicles. The subpoena, issued June 29, requests documents related to “defective, broken and/or fractured steering relay rods of Toyota vehicles,” Toyota said in a filing with the Securities and Exchange Commission.

In February, the same federal grand jury subpoenaed Toyota for information related to unintended acceleration in its vehicles as well as braking systems in the Prius hybrid. Toyota has also received subpoenas related to sudden acceleration from the SEC and the attorney general of Michigan. Toyota did not disclose which vehicles or model years were targeted by the latest subpoena.

The joint venture between Toyota and Tesla Motors, will have us seeing an electric version of Toyota’s RAV4 on the roads as early as 2012. Toyota has made a limited number of electric RAV4’s in the past, but have never commercialized the vehicle. The few RAV 4 EV’s that have been running for the past ten years in fleets and in private hands has been considered a terrific workhorse for those driving it. In this new venture, Toyota gets to re-energize their once innovative small crossover vehicle, and Tesla can show that their style of battery and energy management can support large-scale usage.

Tesla is best known for their first and only electric car, the Roadster, which was introduced in 2008, but hopes to expand their market with their Model S sedan which it plans to start selling in 2012. With the e-RAV4 they hope to expand the market even further for electric vehicles by giving ‘soccer moms’ and small business owners a vehicle they can use on a daily basis.

Toyota Motor Corp. will be recalling 270,000 Lexus and other vehicles worldwide to fix faulty engines that could make vehicles stall while driving. The problem is with contaminated materials used to make valve springs and crucial engine components. The global recall that starts Monday affects six luxury Lexus sedan models as well as the popular Toyota Crown, Toyota spokesman Paul Nolasco said. Of the 270,000 recalled cars, some 180,000 were sold overseas, including 137,000 in the the United States.

According to the released statement by Toyota, models that could potentially have a faulty valve spring include:

  • Lexus IS 350
  • Lexus GS 350
  • Lexus GS 460
  • Lexus GS 450h
  • Lexus LS 460
  • Lexus LS 600h L
  • Toyota Crown

Current model years are unaffected by the recall. Lexus is moving quickly to resolve the situation and will announce an appropriate remedy as soon as possible.