Friday, February 19, 2010

Toyota May Recall Corollas for Steering Problems



There's more bad news for Toyota.The automaker disclosed this morning it's looking into possible power-steering problems in the Corolla subcompact.

Toyota faced the media again this morning as it continues to deal with the fallout over its massive recalls.

In a move it hopes will gain back some consumer trust, the company announced that all future vehicles would have a new brake override system. But U.S. officials want more.

On Tuesday, they ordered the auto giant to provide documents showing how and when it first learned of flaws in its accelerator and brake systems. U.S. law requires manufacturers to notify the government within five days of discovering a safety defect and quickly issue a recall.

Toyota has 30 to 60 days to respond. If federal regulators determine the company didn't act fast enough, Toyota could get slapped with fines of more
than $16 million.

Congress is also investigating toyota and the response of U.S. Transportation officials. A house hearing is set for next week but Toyota's president says he won't be attending, leaving other executives to answer the tough questions.

"Why they weren't quicker and whether there needs to be greater action to force greater transparency between all auto companies and the government." Representative Darrell Issa will-co chair the upcoming grilling. He visited a Toyota dealership Tuesday. "Today, at this Toyota dealer, cars are being made safely the question is. Why did it take so long?"

Toyota's recent troubles are having a ripple effect on its sales. Concerns about unsold cars have forced the company to idle production in three states.

source: ozarksfirst