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Cars Blog

Toyota U.S. sales halt deals blow to image, earnings

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January 27, 2010 11:46 am
By Peter C. T. Elsworth

NEW YORK -- Toyota's suspension of U.S. sales on an unprecedented scale to fix faulty gas pedals deals a blow to the automaker's reputation for quality and endangers its fledgling earnings recovery, according to The Associated Press.

The suspect parts are made by a U.S. supplier, but they are also found in its European-made vehicles, an official with the automaker said Wednesday. Toyota said it hasn't decided what to do there.

Japan's Toyota Motor Corp. announced late Tuesday it would halt sales of some of its top-selling models to fix gas pedals that could stick and cause unintended acceleration. Last week, Toyota issued a recall for the same eight models, affecting 2.3 million vehicles.

Toyota is also suspending production at six North American car-assembly plants beginning the week of Feb. 1. It gave no date on when production could restart.


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