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Toyota expands controversial recall to two new models
by Staff Writers
Chicago (AFP) June 29, 2012


Japan's vehicle output jumps in May
Tokyo, Japan (AFP) June 29, 2012 - Japan's auto sector on Friday reported a jump in production for May from a year earlier, reflecting the steep recovery after last year's quake-tsunami disaster crippled output and demand.

Production of cars, trucks and buses reached 781,340 units, up 59.5 percent from May 2011 and the eighth consecutive monthly increase, according to the Japan Automobile Manufacturers Association (JAMA).

The figures reflect a low basis of comparison from 2011.

Japan's auto sector suffered one of its worst months on record in May last year when they slashed production and shuttered plants due to power shortages and a parts supply crunch following the March natural disasters.

Flooding in Thailand later in the year added to the pain as Japanese manufacturers with plants in the country saw major supply disruption.

Most automakers returned production to pre-quake levels by the end of 2011.

The yen also hit record highs against the dollar last year and remains strong, making exporters' goods pricier overseas while shrinking the relative value of their overseas earnings.

Toyota on Friday added two models to a controversial 2009 recall launched after floor mats became trapped under the accelerator and were linked to dozens of deaths.

Toyota's mishandling of the initial problem and other reports of sudden, unintended acceleration led to the recall of more than 12 million vehicles worldwide, a US congressional probe, more than $50 million in fines from US regulators and public apologies by its chief.

Toyota has worked hard since then to regain its once-stellar reputation for safety, even as the Japanese giant faced the impact of the economic crisis, a strong yen and the devastating 2011 quake and tsunami which shattered supply lines.

Toyota managed to regain its position as the world's number one automaker in the first quarter of 2012, stealing back the lead from US giant General Motors.

Friday's recall affects 154,000 vehicles in the United States: 2010 models of the Lexus Rx 350 and the Lexus RX 450h.

"Owners of the involved vehicles will receive a safety recall notification by first class mail in early August 2012," Toyota said in a statement.

"Lexus dealers will remedy the involved vehicles at no cost to the customers."

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S. Korea's Kia breaks ground for new China plant
Seoul (AFP) June 29, 2012
South Korea's second-largest automaker Kia Motors said it broke ground Friday for its third plant in China, the world's fastest-growing car market. The company said the new plant in the northeastern city of Yancheng would produce 300,000 cars annually when completed in the first half of 2014. It would help Kia boost its annual production in China to 730,000 units. Kia, an affiliate of So ... read more


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