plus 3, Toyota: no estimate for when pedal problems fixed - Yahoo Finance

Toyota: no estimate for when pedal problems fixed - Yahoo Finance
Flooded cars could become easier to sell in Virginia - WVEC
Toyota pedal manufacturer, CTS Corp., set to produce redesigned pedals - New York Daily News
Where vegetarian fare will never be top dog - Delaware Online

Toyota: no estimate for when pedal problems fixed - Yahoo Finance

Posted: 28 Jan 2010 02:55 PM PST

WASHINGTON (AP) -- Toyota Motor Corp. said Thursday it's closing in on solutions to a gas pedal system problem, but it still had no details on when drivers would see repairs as an embarrassing recall spread to more than 2.4 million vehicles on three continents.

Toyota dealers in the U.S. have been swamped with calls from concerned owners but had few answers as the recalls snowballed. Elkhart, Ind.-based CTS Corp., which made the parts, is cranking out redesigned gas pedal assemblies that fix the problem, which is caused by condensation around an arm attached to the pedal and springs that send the pedal back to the idle position.

Toyota engineers are developing ways to repair the pedal systems in existing cars and trucks, said spokesman Brian Lyons.

No decision has been made yet on whether to repair the pedals or replace them altogether, he said, and he would not estimate how long it will take for customers to see action. Lyons says the automaker has not decided if the new pedals will go first to factories so production of eight models can resume or to dealers for modification of new cars on their lots and cars being driven by their customers.

Toyota on Thursday extended its recalls to China and Europe, deepening the massive recalls that threatened to undermine the reputation of the world's top automaker as a manufacturer of safe, durable vehicles.

The automaker has informed Chinese authorities it will start a recall in February for 75,500 RAV4 vehicles that were manufactured in China between March 2009 and January 2010, said Toyota spokeswoman Ririko Takeuchi. Toyota is still unsure how many vehicles could have the defect in Europe.

House lawmakers, meanwhile, said they intend to hold a Feb. 25 hearing to review the complaints of sudden unintended acceleration in Toyota vehicles. "Like many consumers, I am concerned by the seriousness and scope of Toyota's recent recall announcements," said House Energy and Commerce Committee Chairman Henry Waxman, D-Calif.

Earlier this week, the company said it was suspending U.S. sales and production of eight models -- including the Camry, America's top-selling car -- to fix faulty pedal systems that could stick and cause acceleration without warning. A week before the sales suspension, Toyota had issued a U.S. recall for the same eight models, affecting 2.3 million vehicles, even before the recalls in China and Europe.

Also this week, Toyota announced the recall of 1.09 million vehicles in the United States over concerns that floor mats could bend across gas pedals, causing sudden acceleration. That recall covered five models -- 2008-2010 Highlander, 2009-2010 Corolla, 2009-2010 Venza, 2009-2010 Matrix, and 2009-2010 Pontiac Vibe, a General Motors Corp. vehicle that shares parts with the Matrix. Those were in addition 4.2 million vehicles recalled in late 2009 over floor mat concerns. Some of the models in both recalls overlap.

CTS also makes pedals for Honda Motor Co., Mitsubishi Motors, Nissan Motor Co. and Ford Motor Co. in China, but the company said pedals made for those manufacturers don't have the same design. Still, Ford on Thursday halted production of some full-sized commercial vehicles in China because they contain CTS gas pedals.

CTS officials say they have ramped up production at three factories to manufacture redesigned pedals. The pedals are meant to solve problems with condensation that Toyota has said can cause them to react slowly when a driver presses on the gas. In rare cases, the gas pedals can get stuck.

CTS says it is also working with the Japanese automaker to find a potentially quicker repair for vehicles already on the road.

Lyons says the company's No. 1 priority is figuring out how to repair the largest number of vehicles in the shortest amount of time.

Repairs to the pedals still have to go through the normal durability testing to make sure they work properly, Lyons said. He would not estimate how long it will take for Toyota to decide on repairing versus replacement, nor would he say how long it will be until cars and trucks are fixed.

Toyota officials met Thursday with the National Highway Traffic Safety Administration to discuss a potential fix for the recalled vehicles, according to a person who was briefed on the meeting. The person, who was not authorized to speak publicly about the private meeting, said NHTSA officials discussed the potential remedy with Toyota and the government said they would express any concerns they may have about the proposed fix.

The automaker does not need NHTSA's specific approval but company officials do not want to proceed with a fix if the government has concerns about it. NHTSA has not signed off on any fixes at this point, the person said.

Since the initial recall last October, the company has held discussions with the government over the accelerator problem, and NHTSA was expected to review a possible remedy for the latest recall.

The sales suspension in the U.S. -- Toyota's biggest market -- could endanger the company's fledgling earnings recovery. Toyota only returned to the black for the July-September quarter with net income of 21.8 billion yen ($241 million) after three straight losing quarters.

"It is still uncertain how this recall problem will affect Toyota's profits. But investors are worried it could really pressure the company's overall earnings," said Masatoshi Sato, market analyst at Mizuho Investors Securities Co. Ltd.

Fitch Ratings warned Thursday the massive recalls and sales suspension could dent Toyota's recovery, especially in the vital U.S. market.

Fitch placed Toyota's credit rating of 'A+' on watch negative, meaning the rating could be downgraded. That could increase the interest rate Toyota pays on any debt.

"The recalls and sales and production suspension cast a negative light on Toyota's reputation for quality, just as the company emerges from an unprecedented downturn in the auto industry," Fitch said in a statement.

In March of 2007, Toyota started getting reports of gas pedals being slow to rise after being depressed for acceleration. Engineers fixed the problem in the Tundra pickup early in 2008.

But troubles persisted in other models, eventually leading to last week's U.S. recall and the plans to suspend sales and shut down of six factories while Toyota tries to fix the problems.

Associated Press writers Yuri Kageyama and Shino Yuasa in Tokyo, Aoife White in Brussels Stephen Manning in Washington and Dee-Ann Durbin in Detroit contributed to this report.

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Flooded cars could become easier to sell in Virginia - WVEC

Posted: 28 Jan 2010 01:15 PM PST

RICHMOND (AP) -- The threshold at which water damage to vehicles must be disclosed to buyers would rise under a bill that cleared the House of Delegates Thursday despite warnings it could make Virginia a dumping ground for flooded cars.

The House voted 73-25 to raise the amount of repair allowed before water damage must be recorded on a vehicle's title from $1,000 to $5,000, which would make Virginia the state with the highest water damage threshold in the nation. The Senate sent its version back to committee to reach a compromise.

Del. Matthew Lohr, R-Rockingham County, said his bill is needed because cars are more expensive than they were when the threshold was established in the 1960s and the $1,000 limit could make it difficult to sell a high-end car with very little water damage. A water damage branded title greatly impacts the value of a vehicle.

Consumer advocates and some legislators say the change would result in buyers being duped into purchasing vehicles with residual odors and corroded electrical systems, spiffed up with air freshener and new carpet to appear unharmed.

"It would be like an open invitation: Dump your flood cars here," said Rosemary Shahan, president of Consumers for Auto Reliability and Safety. Her Sacramento, Calif., organization was one of several that sent letters urging lawmakers to reject the proposal.

Only Virginia, the District of Columbia and Hawaii have thresholds -- each at $1,000 -- for the amount of water damage allowed before it must be disclosed on the vehicle's title, according to the National Consumer Law Center. At least nine other states require disclosure that a vehicle has been in a flood or suffered other water damage.

"Virginia's law is already one of the most lax in the country, and this bill would make our law arguably the worst," said Del. Robin Abbott, D-Newport News.

If the damage is more than 75 percent of the vehicle's value, it would have to be salvaged and could not be driven again.

The Department of Motor Vehicles has not taken a position on the bill, but does believe the law needs updating, said Melanie Stokes, a spokeswoman for the agency. The department got together organizations representing the automobile insurance industry, car dealers and auto salvagers to come up with legislation. No consumer groups were represented.

"It's not a bill to cheat the consumer or open the door to more fraud; it just makes sense that the last time this minimum threshold was elevated was in 1966," Lohr said.

Back then, most new cars cost less than $5,000, so $1,000 in damage was much greater than it is today, when leaving the sunroof open on a Mercedes for a few hours could do several thousand dollars in damage to its leather interior and wood paneling.

"All this does is it acknowledges that $1,000 damage from water in 1966 was much more catastrophic and much larger percentage of the value of the vehicle than it is today," said Del. Bill Janis, R-Henrico.

Virginia Automotive Recyclers Association refused to comment on the bill, but provided a list of talking points that says the bills would save the DMV from having to inspect vehicles with minor water damage, and would help owners and dealers sell those cars.

Representatives of the auto dealer industry, which has donated more than $350,000 to political candidates over the past year, did not return calls and e-mails seeking comment.

Democrats chided Republicans for not wanting to raise taxes or fees to avoid massive cuts in public services due to a $4 billion budget shortfall because of the fear of hurting working Virginians while at the same time supporting a bill that would keep information about significant damage to vehicles from unsuspecting buyers.

"Would you want your daughter to know that that car had been flood damaged?" said Del. Joe Morrissey, D-Henrico. "Would you like your daughter to know that the crank shaft had been filled with water, the transmission possibly damaged, the brakes damaged? This bill is simply about notice."

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Toyota pedal manufacturer, CTS Corp., set to produce redesigned pedals - New York Daily News

Posted: 28 Jan 2010 02:19 PM PST

THE ASSOCIATED PRESS

Thursday, January 28th 2010, 4:48 PM

To drive or not to drive?

Would you still buy Toyota cars after the recall?

The company that makes the gas pedal systems implicated in Toyota's big recall says it is working with the automaker on a fix.

CTS Corp. officials say they have ramped up production at three factories to manufacture redesigned pedals. The pedals are meant to solve problems with condensation that Toyota has said can cause them to react slowly when a driver presses on the gas. In rare cases, the gas pedals can get stuck.

CTS says it is also working with the Japanese automaker to find a potentially quicker repair for vehicles already on the road.

Toyota spokesman Brian Lyons says the automaker has not decided if the new pedals will go to dealers or factories.

He says the company has also not decided whether it will repair the defective pedals or replace them. Toyota engineers are working on ways to fix the pedals, he said.

Lyons says the company's No. 1 priority is figuring out how to repair the largest number of vehicles in the shortest amount of time.

Toyota officials were meeting Thursday with the National Highway Traffic Safety Administration to discuss a potential fix for the recalled vehicles.

Since the initial recall last October, the company has held discussions with the government over the accelerator problem, and NHTSA was expected to review a possible remedy for the latest recall.

Earlier this week, Toyota halted sales of eight models due to problems with the gas pedal system. That followed a recall last week of 2.3 million trucks and cars, including Camrys and Corollas.

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Where vegetarian fare will never be top dog - Delaware Online

Posted: 28 Jan 2010 02:55 PM PST

I'm firmly in the camp that whenever I eat a hot dog, I want it made of something that once had a face. Call me a card-carrying carnivore and proud of it.

But Mark Raphaelson says that the veggie hot dogs and veggie sausage on the menu of his Johnnie's Dog House in Brandywine Hundred often make vegetarians think that they've accidentally been served meat.

"They're so good, people bring it up and say, 'You made a mistake.' I can't tell you how many times that happens," Raphaelson says.

Johnnie's, a 1940s-style casual eatery at 3401 Concord Pike -- in a revamped auto repair shop across from the old Concord Pike library -- has been offering turkey and vegetarian varieties of its hot dogs since it opened more than a year ago.

But a few months ago, Raphaelson discovered a vegetarian sausage at a New Jersey food show that he thought was worth putting on the menu. He also has been grilling Dr. Praeger's California veggie burgers, a certified vegan product that's made with a cornucopia of healthy stuff such as carrot, onion, string beans, soybeans, zucchini, oat bran, peas and spinach.

"They're all vegetable. I call 'em burger salads," he says of the 5 1/2 ounce patties.

Raphaelson says all the vegetarian items at Johnnie's have been selling well.

"It seems like everyone is trying to eat healthy," he says, before reconsidering a bit. "Well, until they get in here."

Will power can be short-lived inside a hot dog joint, he admits. "They'll say, 'Oh, I'll take some fries. And I might as well get a milkshake.' "

Don't worry. Raphaelson won't rat you out to your family, personal trainer or local Weight Watchers group leader.

"We like to say, 'Whatever goes on at Johnnie's Dog House stays at Johnnie's Dog House.' "

To be honest, if you're a devout fan of 100 percent all-beef hot dogs, there's probably no way you're going to mistake a veggie version -- the main ingredient is wheat gluten -- for the real thing.

And while I was expecting the taste to be as bland as that wife-seeking pilot guy on this season of "The Bachelor," the veggie hot dog ($2.50 to $3.50), which is pinkish brick red, has a smoky flavor. At 100 calories, it has 8 grams of protein. We tried it plain, but next time, I'd probably take Raphaelson's suggestion and order it "New Jersey-style," which packs the Pepperidge Farm bun with grilled potatoes, peppers and onions.

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