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TOKYO — Toyota Motor Corp. is fine-tuning a dealer remedy for faulty accelerator pedals in 2.3 million recalled vehicles and aims to announce the fix as early as next week, a person familiar with the matter said.

The procedure involves inserting a metal shim into a gap in the friction lever of the pedal. Doing so will reduce friction and prevent the pedal from sticking, the person said.

“As early as next week, we will have some guidance for dealers,” the source said. “We are still trying to solve a few technical issues.”

Among the last-minute tweaks are testing for durability and ensuring that the remedy is something that dealers can easily employ.

Recalls are the latest black mark on industry already battered by recession

WASHINGTON/TOKYO – Honda Motor Co, tipped to gain from Toyota’s safety recall, also said it would recall thousands of cars worldwide.

Honda said it would recall a total of 646,000 units of its Fit/Jazz and City models, including 140,000 in the United States, because of a faulty window switch, after a child died when fire broke out in a car last year.

The announcement came as investors, suppliers and consumers weighed the impact of an unprecedented halt in U.S. production by Toyota, the world’s No. 1 automaker.

Read more here.

DETROIT — Ford Motor Co. posted a fourth-quarter profit today and swung to its first full-year profit since 2005 with the help of accounting gains while forecasting an operating profit for this year.

The results showed continued progress in CEO Alan Mulally’s recovery efforts in the face of the weakest U.S. sales in 27 years.

“While we still face significant business environment challenges ahead, 2009 was a pivotal year for Ford and the strongest proof yet that our One Ford plan is working and that we are forging a path toward profitable growth by working together as one team, leveraging our global scale,” Mulally said in a statement.

Ford reported fourth-quarter net income of $868 million compared with a loss of $5.9 billion a year earlier. Ford snapped a three-year streak of losses by recording a net profit of $2.7 billion for 2009 compared with a loss of $14.8 billion in 2008. Last year’s results were aided by large gains from debt-reduction efforts and other items.

Ford’s operating profit, after taxes, for the fourth quarter was $1.6 billion compared with a loss of $3.3 billion a year ago. For the year, Ford’s operating profit was $8 million compared with a loss of $7.3 billion a year earlier.

Ford finished the year with $25.5 billion in automotive gross cash and $34.3 billion in automotive debt.

“We’re going to be profitable in 2010,” said CFO Lewis Booth, issuing the automaker’s first forecast for the year. Three months ago, Ford changed its 2011 outlook to “solidly profitable” from “break-even or better.”

Booth reiterated the “solidly profitable” plan today.

Ford posted losses totaling $30 billion from 2006 through 2008, including a record $14.7 billion net loss in 2008.

Ford is also raising production in the first quarter in North America by 20,000 units to 570,000 units from previously announced 550,000 units.

by Jamie LaReau, Automotive News

TOKYO — Toyota Motor Corp., battling an escalating crisis over the safety of its vehicles, said it will recall another 1.1 million autos in the United States to fix floor mats that may jam accelerator pedals and cause unintended acceleration.

The action is an extension of last fall’s recall, in which the world’s largest automaker called back 4.3 million vehicles in its largest ever U.S. safety action.

Wednesday’s amended recall involves 2008-10 Highlanders and 2009-2010 Corollas, Venzas, and Matrixes, Toyota said in a statement. The action also covers 2009-2010 Pontiac Vibes made in a joint venture with General Motors Co.

The move comes a day after Toyota said it would halt sales and temporarily suspend production of 2.3 million U.S. vehicles recalled last week for sticking accelerator pedals. That issue is separate from the floor mat concern, though both may result in vehicles accelerating unintentionally out of a driver’s control.

“We added these vehicles after some reports were received by the federal government of pedals getting trapped on secured floor mats,” said Brian Lyons, a Toyota spokesman for recall issues. “We heard it’s a very small number.”

The carmaker’s remedy calls for modifying or replacing accelerator pedals and possibly changing the floor surface to reduce the possibility of pedal entrapment.

Dealers will be instructed how to reshape the pedal as a quick fix, and replacement pedals will be shipped to them as the components become available. Toyota will also replace all-weather floor mats with a newly designed mat.

Hans Greimel, Automotive News

January 28, 2010 – 12:01am ET

Claims it fixes recall issue, still working for fix of existing components

Associated Press

ERLANGER, Kentucky – Toyota says production has begun on redesigned accelerator pedals that fix problems that led to a major recall of its eight car models.

Toyota worked on the design with CTS Corp., which supplied the pedals in the 2.3 million recalled vehicles. Pedals featuring the new design are in full production at CTS, Toyota says.

It was found that the faulty pedals could lead to unintended acceleration in rare instances.

The automaker also says it is working with the supplier to test modifications to existing pedals and plans to roll those out as soon as possible.

DETROIT — General Motors Co., seeking to capitalize on the problems plaguing Toyota Motor Corp.’s vehicles, will offer a monthlong incentive to Toyota and Lexus owners.

The move is in response to “thousands” of calls and e-mails to dealers and GM employees from Toyota owners asking for help, GM spokesman Tom Henderson said today.

The incentive, which runs through the end of February, offers Toyota and Lexus owners three options, Henderson said:

1. Those who choose to lease a vehicle may waive three payments for up to a total of $1,000.

2. Qualifying customers who are financing a vehicle purchase can receive 0 percent financing for up to 60 months.

3. Cash buyers can receive $1,000 off their purchase.

The incentive applies to purchases of GMC, Buick, Cadillac and Chevrolet vehicles, Henderson said.

Toyota last week recalled 2.3 million vehicles to fix accelerator pedals that could become stuck. That recall number included some 2009-10 Pontiac Vibes, the sibling crossover of the Toyota Matrix. Both were produced in California by a former joint venture between GM and Toyota, New United Motor Manufacturing Inc.

Late yesterday, Toyota said it would suspend sales of vehicles with the affected pedals. That includes the 1,400 Pontiac Vibes left in North America, GM spokesman Alan Adler said today.

Only six Vibes are left in the United States — the rest are in Canada. And four of the U.S. Vibes are technically sold but still may be on dealers’ lots, Adler said.

GM won’t sell the two unsold U.S. Vibes, he said.

GM expects Toyota will pay for all recall work, Adler said, but the automaker is waiting for Toyota to give instructions to Buick-GMC dealers for fixing Vibes.

“Ultimately, GM dealers would fix Pontiac vehicles, but it’s up to Toyota to provide the remedy,” Adler said today.

Toyota spokesmen didn’t immediately respond to requests for comment.

It was unclear if any other automakers would follow GM’s lead.

Said Ford spokesman Robert Parker: “We have not changed our focus, which is to provide all customers with products they want and value. It is through the strength of our new products – with leading quality, fuel efficiency, safety, smart design and value – that we have been and will continue to attract new customers.”

Hyundai isn’t currently planning an incentive aimed at Toyota, spokesman Chris Hosford said today, but the company is still considering doing so.

“Every day in the car business is new,” Hosford said. “Tomorrow, we could see something that changes the situation.”

Chrysler spokeswoman Kathy Graham said:

“We’re not doing anything to target Toyota customers at this time. Our focus has been on getting the word out to consumers that the new company has great vehicles with cool features and making sure we’re building our brands and letting customers know. Nothing has changed.”

http://www.autonews.com/apps/pbcs.dll/article?AID=/20100127/RETAIL/100129874/1400

http://pressroom.toyota.com/pr/tms/toyota/toyota-consumer-safety-advisory-102572.aspx
Posted to: Avalon, Camry, Corolla, Corporate, Highlander, Matrix, RAV4, Sequoia, Toyota, Tundra

TORRANCE, Calif., January 26, 2010 – - Toyota Motor Sales (TMS), U.S.A., Inc., today announced that it is instructing Toyota dealers to temporarily suspend sales of eight models involved in the recall for sticking accelerator pedal, announced on January 21, 2010.

“Helping ensure the safety of our customers and restoring confidence in Toyota are very important to our company,” said Group Vice President and Toyota Division General Manager Bob Carter. “This action is necessary until a remedy is finalized. We’re making every effort to address this situation for our customers as quickly as possible.”

Toyota announced it would recall approximately 2.3 million vehicles to correct sticking accelerator pedals on specific Toyota Division models. Toyota has investigated isolated reports of sticking accelerator pedal mechanisms in certain vehicles without the presence of floor mats. There is a possibility that certain accelerator pedal mechanisms may, in rare instances, mechanically stick in a partially depressed position or return slowly to the idle position.

Toyota’s accelerator pedal recall and suspension of sales is confined to the following Toyota Division vehicles:

2009-2010 RAV4
2009-2010 Corolla
2009-2010 Matrix
2005-2010 Avalon
Certain 2007-2010 Camry
2010 Highlander
2007-2010 Tundra
2008-2010 Sequoia

No Lexus Division or Scion vehicles are affected by these actions. Also not affected are Toyota Prius, Tacoma, Sienna, Venza, Solara, Yaris, 4Runner, FJ Cruiser, Land Cruiser and select Camry models, including all Camry hybrids, which will remain for sale.

Due to the sales suspension, Toyota is expected to stop producing vehicles on the following production lines for the week of February 1 to assess and coordinate activities.  The North America vehicle production facilities affected are:

• Toyota Motor Manufacturing, Canada (Corolla, Matrix, and RAV4)
• Toyota Motor Manufacturing, Indiana (Sequoia and Highlander)
• Toyota Motor Manufacturing, Kentucky – Line 1 (Camry and Avalon)
• Subaru of Indiana Automotive, Inc. (Camry)
• Toyota Motor Manufacturing, Texas (Tundra)

No other North American Toyota vehicle production facilities are affected by the decision to stop production.

The sticking accelerator pedal recall is separate from the on-going recall of Toyota and Lexus vehicles to reduce the risk of pedal entrapment by incorrect or out of place accessory floor mats. Approximately 1.7 million Toyota Division vehicles are subject to both separate recall actions.

With a new car SAAR predicted of approximately 11.4 this year, many dealers are looking at an increase in new vehicles of around 10%. There are and will always be exceptions, but things are showing that they are trending up for the year. That leaves used cars. The one inventory you can control and don’t depend on the factory to regulate you with incentives, lease programs and dealer cash. There is no limit to how many used cars you can sell, the only limit is your people, their ability and your inventory.

Every dealership is different and there’s is no exception when it comes to used car inventory. You need to know what is being sold in the greatest number in a 10- to 12-mile radius around your dealership and pick out the opportunity cars and segments that you can do the best with. A BMW dealer probably doesn’t need to go bananas buying Ford F-150 trucks to stock on his used car lot (even though that is typically one of the top 5 used vehicles in every market), but he can look for sedans, compact cars, SUVs – vehicles that have a history of being a good retailable piece at his store. Likewise, a Ford dealer probably doesn’t need to order pre-owned BMW’s by the truckload, as there are other models that he can turn the fastest.

There are only a certain number of parking spaces on your used car lot. Some dealers have more than others, but everyone has a certain limit of what they can keep in house. The vehicles you park in those spaces need to be researched and need to be confirmed as the most possible best retailable pieces you can stock, otherwise you just put a player on your roster that is not going to contribute.

The news that hit Thursday night January 21, 2010 can be viewed in a lot of ways by dealers. First, for Toyota dealers the major concern isn’t getting the unsafe vehicles off the road / or managing time in their service departments to fix all the warranty work. The major issue for those who have been asleep at the wheel is what percent of the 2010 vehicles – namely Camry / Corolla / RAV4 – that are on their lots currently waiting to be sold have the CTS gas pedals on them.  If the in stock units waiting to be sold have a CTS pedal, then they are going to be affected by the upcoming recall and customers could, and some who are smart will, be turned off from these vehicles. In a count on Friday January 22, 2010 at one of Strong LLC’s dealerships – only 3 out of 10 RAV4’s did not have the CTS pedal and would not be affected by the recall. This dealership had service techs outside crawling in every vehicle checking the wording on the side of the pedal in order to see which vehicle could be sold. You see, there are 2 manufacturers of accelerator pedals in these Toyota models and it is apparent at this point that the vehicles with the CTS pedals are the ones that are going to be recalled. The fact that this recall is affecting 2010 in stock units is one that could have a very negative outcome on Toyota sales as we start 2010.

The opportunity for Toyota dealers – New 2011 Camry’s – should be on the ground in 45 days and the problem should be corrected on these units. This creates a perfect trade cycle opportunity for you to take customers out of what could be perceived as an unsafe vehicle and put them in a new one. Thus, creating a trade in that can be fixed under warranty and added a vehicle that can be retailed as a used unit. Toyota dealers need to communicate information that is passed on by Toyota Motor Sales and be open and honest with their customers about the time frame on the repair, and also about the opportunity to put customers who may have experienced these problems in a TRAC or Toyota Rental Car.

The opportunity for Non-Toyota Dealers:  YOU HAVE BEEN WAITING FOR THIS FOR A LONG TIME. Honda & Nissan have a chance to immediately steal the most market share from Toyota. Chevy and Ford are next in line. Take this opportunity and run with it! Get a Camry that has been crashed or totaled out and park it on your lot, proudly making a display that can be a great talking point to customers. Banners, posters, literature, can all be used and dispersed to customers inside the walls of your dealership to immediately kill any cross comparison shopping. Honda Accord, Chevrolet Malibu, Ford Fusion, Nissan Altima can have major upswings in market share from Camry due to these circumstances. Take full advantage of the opportunity that you have, because there have not been many in Toyota’s history and you can promote your brand past one of the industry leaders if done quickly and effectively.

And the January Award for

Outstanding Dealership Website

goes to…

Hudson Toyota!

The management of Hudson Toyota has taken an E Biz Auto’s Site and completely customizedthis site to enhance all areas of the dealership.

Special attention has been paid to inventory,specials,service and links to social media and all executionsmatch the external marketing campaigns.