Toyota Turmoil

Updated with news on European recall DETROIT (TheStreet) — Toyota(TM Quote), stung by a worldwide recall said Friday it will add up to 1.8 million vehicles in Europe to the recall list, as the automaker’s woes from sticking gas pedals expanded. “We continue to feel these are fundamentally good cars,” said David Champion, director of Consumer Reports’ auto test center. Auto Test Center. “The instances of sticking accelerator pedals appear to be few compared to the millions of affected vehicles that have been sold. We took this step simply because we did not feel comfortable continuing to recommend them until the accelerator problem is fixed.” Toyota has said it is working to resolve the problem. Automotive News’ reported Friday that the company will announce a dealer remedy as early as next week, using a procedure that involves inserting a metal shim into a gap in the friction lever of the pedal. [Read the full article]

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Toyota Motor Corp’s (Tokyo:7203.T – News) largest rivals are declaring open season on the automaker at a time when the industry leader is seen as most vulnerable in its largest market.

Ford Motor Co (NYSE:F – News) and Hyundai Motor Co (005380.KS) said on Friday they are rolling out incentives targeting Toyota customers, looking to win sales as Toyota is reeling from a suspension of sales of most of its line-up in the United States due to a massive safety recall.

The companies are following the lead of General Motors Co (GM.UL), which on Wednesday began offering Toyota customers payouts of up to $1,000 or zero-percent financing for up to five years if they trade in a Toyota for a GM vehicle.

GM Chief Executive Ed Whitacre said the program was the first example of a “new, more aggressive’ GM and said the reaction from its dealers has been good. [Read the full article]

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