2010 Toyota Prius

The U.S. Transportation Department has launched an investigation into brake problems in the 2010 Toyota Prius.

Source: Yahoo
Source: Yahoo

The probe will look into reports of temporary loss of braking ability on uneven road surfaces.

Toyota, already reeling from a massive recall involving faulty gas pedals, acknowledged Thursday there were design problems with the antilock brake system of the latest model of its gas-electric Prius hybrid.

Toyota Motor Corp. spokeswoman Ririko Takeuchi said the automaker discovered design flaws in the new Prius and has corrected them for vehicles sold since January, including those shipped overseas.

But the company is still investigating how to inform people who bought them earlier. The model in question first hit showrooms in May. About 170,000 of the new model of cars were sold in Japan and 103,000 in the United States.

About 180 complaints about braking problems in the third-generation Prius have been reported in the U.S. and Japan. The National Highway Traffic Safety Administration in the U.S. says there have been four reports of crashes.

Transport Canada told CBC News it has received five complaints relating to brake concerns on the 2010 Prius — all in the past two months.
Recall to cost $2 billion US

The U.S. National Highway Traffic Safety Administration said two of the complaints involved crashes that resulted in injuries. Japan’s Transport Ministry said Wednesday it has received 14 complaints since July about brake problems with the new hybrid.

The revelation of problems in the company’s flagship green car adds to the woes of the world’s No. 1 automaker, whose reputation as a quality leader has taken a blow with the worldwide recall of 4.2 million vehicles with accelerator pedals that have the potential to stick.

The recall applies to 270,000 vehicles in Canada and 2.3 million in the United States. Toyota said Thursday the U.S. recall could cost $2 billion US — $1.1 billion in direct costs and $770 million to $800 million in lost sales.

The company halted sales in January of eight recalled models in North America, including the top-selling Camry and Corolla, until it fixes the issue. The Prius was not one of the models covered in the gas pedal recall.

Production at two Toyota manufacturing facilities in southwestern Ontario was halted this week because of the recall.

The company made its recall cost projection in its quarterly earnings release, which reported a net profit of about $1.7 billion US in the quarter ended in December and forecast an annual profit of $880 million.

Toyota also raised its full-year sales outlook to 7.18 million units from 7.03 million. The revised forecast remains lower than the 7.57 million vehicles it sold in the previous financial year.

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