Toyota Recalling Priuses

Toyota suffered another blow to its long-cherished image for quality this morning, announcing the recall of thousands of 2010 Priuses. The recall had been expected, as news of the braking problem broke.

The Prius, by far the best-selling hybrid, had become a symbol of Toyota’s commitment to quality, advanced technology, and to its savvy as an auto marketer as the company rolled past General Motors to become the world’s top automaker. Toyota developed it as a popular hybrid while other automakers were still churning out gas-guzzling SUVs and offering little in the way of fuel efficiency.

Now, the car is just another headache for a company that already faces an estimated $2 billion in losses because of previous recalls of popular models such as the Camry, the best-selling car in North America. Those recalls were because of sticky accelerators.

The Prius recall is different. A glitch in the braking system of the 2010 model is forcing the automaker to recall about 233,000 of the cars in Japan, 155,000 in the United States, and 53,000 in Europe.

Dealers will handle the fix, which should take about 45 minutes. Because of a software problem, “the brakes falter for just split moment,” on slippery surfaces, said Toyota President Akio Toyoda. “But if you make sure to push firmly down on the brakes, they will work without fail.”

Some other models are also affected by the latest recall—including 28,000 Lexus HS250hs, and 11,000 Sai hybrids.

In all, Toyota has had to recall about 8 million vehicles worldwide because of gas pedals that could stick or become caught on floor mats.

Besides the estimated $2 billion cost of the recalls, the blow to Toyota’s image has been incalculable. This company, more than almost any other, has built its reputation on the quality of its products. And it has faced questions over whether it has responded properly to problems with its cars—specifically, whether it fixed problems in new models without recalling those already on the road.

Toyoda said Tuesday his company had always told its customers the truth.

“I do not see Toyota as perfect or infallible. But when we discover a defect, make defects, or receive advice from customers, we work hard to fix them and improve,” he said. “We do not allow cover-ups.”

Detroit’s big three automakers have not hesitated to pounce on Toyota’s problems.

While Toyata sales have slumped, Ford has reported a 25 percent increase in sales and GM sales have jumped 14 percent.

“Timing is always critical,” GM CEO Ed Whitacre told the San Antonio Business Journal. “Toyota is a good company. It has certainly shown us a thing or two. Having said that, General Motors is going to move very aggressively…because we want to get the customers back.”