Toyota – Page 16 – California Lemon Law blog

Toyota’s Blue Springs, Mississippi plant that was suppose to be completed before 2010 to build the Prius hybrid, will continue construction in order to build Corolla cars. The Corolla, had originally been built in California, but was temporarily shifted to Japan when Toyota closed down their California factory, due to a joint venture between Toyota and General Motors gone ‘sour’.

Toyota has committed more than $10 million to the state to support road construction and extend water and sewer systems, and made donations to support local education, according to the governor’s office. The plant should be finished by fall of next year, providing almost 2,000 jobs for local residences.

The plan signals that Toyota is again getting ready to tackle a growth strategy after managing to return to the black. The previous year had been the automakers worst loss in its history of building automobiles, due to numerous safety recalls.

Yoshimi Inaba, president and chief operating officer of Toyota Motor North America, said the company couldn’t restart the plant until it was sure of a recovery. “With the return of stability to our existing operations in North America, it is time to fulfill Toyota’s promise in Mississippi,” said Inaba.

Tesla Motors Inc., a Palo Alto, Calif. based company, is scheduled to make a public offering to trade at the end of the month in hopes of raising as much as $178 million. The electric car maker, best known for its one and only all electric Roadster model, plans to sell 11.1 million shares at about $15 per share.

At the end of last month the company announced a $50 million investment from Toyota Motor Corp., and that they would be moving into the automobile plant recently closed by Toyota.

Tesla said it lost $25.5 million in the first quarter of 2010, compared to a quarterly loss of $16.0 million a year earlier. For all of 2009, it lost $55.7 million less than the loss in 2008. While electric automobiles are seen as an emerging technology, they are considered an early-stage industry that could take a decade to become more established, making the Tesla offering riskier.

Last Wednesday Toyota announced it would be recalling some 2009-2010 Lexus LS 460 and LS 600h luxury sedans in the United States and Japan because of the steering wheels ability to fall out of alignment. On Monday, Toyota announced a stop sales on these vehicles. The sales stoppage and recall cover cars equipped with the company’s variable gear ratio steering system that’s an option on the LS 460 and standard on the LS 600h.

The Lexus sales stoppage is expected to last a while since Toyota does not have a solution to the problem yet but will send out official notice of the recall in the mail next month. Toyota expects it will have a remedy for the problem before the end of June. In the meantime, Toyota is not advising LS owners to park their cars. Lexus believes that the involved vehicles are safe to drive. “In some cases the steering wheel can be 90 degrees out of alignment with the wheels of the car,” Lyons said. “But the problem has only been reported in instances of a very tight and very quick turns.” In all reported cases, he said, the steering wheel realigned itself after about 5 seconds of driving straight.

An automobile plant recently close by Toyota in California will be opening up their doors again for Tesla Motors Corp. Backed by a $50 million investment by Toyota, Tesla will start making electric cars within the year, at the same plant that was shared by a Toyota/GM venture. “By working together with a venture business such as Tesla, Toyota would like to learn from the challenging spirit, quick decision-making and flexibility that Tesla has. Decades ago, Toyota was also born as a venture business,” Toyoda said in a statement.

Restarting the factory is a major achievement for California’s economic development and a rare victory for a state that many business leaders say has become uncompetitive because of more regulations and higher labor costs than other states.

But not everyone is happy. The move is a disappointment for Downey officials who had been in talks with the automaker, hoping the company would set up shop in a closed facility that had once been used to manufacture the space shuttle.

Toyota’s investment in Tesla is particularly important because the electric vehicle company will be competing against better capitalized and larger traditional manufacturers. When an established manufacturer decides to partner with newcomers it will considerably increase the probability of success by giving them manufacturing know-how and access to a distribution network

Toyota announced Wednesday that it will be recalling almost 4,500 Lexus LS luxury sedans in the United States and 7,000 in Japan. The complaint comes from consumers who say that the steering wheel came out of alignment with the direction of the car’s wheels during certain driving maneuvers.

The problem involves the computerized system that oversees how the steering wheel controls the tires. The steering system comes standard in Japanese models, but is optional in other countries. It varies the amount that the steering wheel turns the tires, allowing drivers to turn the wheel less at low speeds when attempting to navigate or park in tight spots and providing finer control at high speeds. The system can take “a few seconds” to return the steering to normal after it has been adjusted, which led to complaints from drivers, said Toyota spokesman Paul Nolasco.

There have been 12 complaints out of Japan but no accidents reported because of the problem.

After massive restructurings in the auto industry, things seem to be looking up. After ten consecutive money losing quarters, GM said that they have made an unexpected profit of $865 million in the first quarter. Even Toyota, still recovering from their biggest recall ever for unintended acceleration, said Tuesday that the January-March profit totaled $1.2 billion compared to a loss the year before. But when it comes to motorcycles and scooters, things are still looking grim.

Even though motorcycles and scooters are more economical to operate, their sales are down 4.6% in the first quarter compared to last year. Hard hit by a down economy that has tightened credit and by stable gasoline prices, motorcycle dealers are scrambling to find customers any way they can. With so few buyers in the market for new bikes dealers are focusing on parts, accessories and pre-owned motorcycles to survive. Many dealerships have also cut hours and staff.

As Transportation chief Ray LaHood met with president of Toyota, Akio Toyoda, another safety probe is on the horizon. This time, Federal regulators are examining whether Toyota delayed disclosing a defect in the steering system in 4Runner SUVs and T100 trucks. The probe was launched when the National Highway Traffic Safety Administration (NHTSA) received documents Friday 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.

Toyota said it had recalled HiLux trucks sold in Japan but no recall was necessary in the U.S., because there had not been any complaints. But four lawsuits filed in 2009 in Los Angeles, showed that there had been complaints as far back as 2000 on models using the same linkages. It wasn’t until 2005 that the automaker recalled vehicles in the U.S. to replace the steering relay rods.

In addition to the new investigation, NHTSA is examining whether the company’s recalls for floor mats and sticky pedals that could cause sudden acceleration were timely. In addition to investigating sudden acceleration in Toyota vehicles, the stability control system in the Sequoia SUV, stalling problems in the Corolla and Matrix, steering wander in the Corolla and Matrix and braking performance in the Prius.

But NHTSA has also come under fire for its handling of the Toyota defect scandal. In the last eight years, the agency closed multiple investigations involving Toyota despite thousands of complaints and allegations of several dozen deaths caused by sudden acceleration in Toyota vehicles.

Consumer Reports magazine is lifting their “Don’t Buy” recommendation for the 2010 Lexus GX460 after dealerships updated the electronic stability control software.

In April, Toyota recalled about 10,000 of the Lexus SUVs and stopped selling them after Consumer Reports testers went into a sideways skid during a high speed turn on the magazines test track. Under normal circumstances, the electronic stability control should quickly correct the loss of control and keep the SUV on its intended path. But with the GX 460, the stability control took too long to react, the magazine’s engineers said.

While the fix made the GX 460’s handling secure, Consumer Reports said it is still “ponderous and ungainly,” which is typical of SUVs. Crossover vehicles are probably a better choice since they are built on car underpinnings, and they are smaller, so you get better gas mileage.

Category Archives: Toyota

Toyota Restarts Construction On Plant

Tesla Motors Publicly Offered

Toyota Stops Sales Of Lexus Luxury Sedans

Good News For The Auto Industry In California

Toyota Recalls Lexus LS Vehicles

Auto Sales Up – Motorcycle Sales Down

Another Safety Probe For Toyota

Lexus “Don’t Buy” Recommendation Lifted