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Toyota Motor Corp's newest Prius hybrid car's engine - Source: Reuters -
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Toyota Motor Corp said it has suspended shipments of its Sai and
Lexus HS250h hybrids for possible problems in the models' braking
systems, as it prepares for a recall of its flagship Prius
hybrid.
Toyota, which has already announced two other massive recalls, is
fighting to keep its reputation for quality and reliability and
deal with a potential rush of litigation.
Media also said Toyota President Akio Toyoda was considering
testifying to Congress at a hearing in front of the House Oversight
Committee in Washington. Toyota declined to comment.
The Sai and Lexus models use a similar braking system as the Prius,
and Toyota has halted shipments at its Toyota Kyushu unit while it
conducts checks to determine if any recalls of those models or
other measures would be necessary, a spokeswoman said.
The Nikkei business daily said that Toyota may halt production and
that a weeklong output shutdown would amount to a combined 2,000
units at least of the two models.
As Toyota's North American plants resumed production of eight
models involved in an earlier safety recall for sticky accelerator
pedals, the world's largest automaker said it was getting ready to
recall the Prius hybrid car in Japan as early as Tuesday, a source
said.
Toyota has said it has fixed a software glitch in the anti-brake
lock system (ABS) on the third-generation Prius at the end of
January and that cars being produced now would not be subject to
any recall.
Shares in Toyota, which lost about a fifth of their value since
late January, were up 1.7%, outperforming a 0.7% fall in the Nikkei
average.
"The shares fell while Toyota appeared not to be doing anything to
deal with its problems. But now, the fact that they're taking
concrete steps on the issue is being seen as positive," said
Hiroaki Osakabe, a fund manager at Chibagin Asset Management.
"But the gains will be limited since many investors want to see the
impact of the problems on US car sales, with more share selling
ahead if there's a big drop."
