Monday, April 19, 2010

Toyota halts Lexus SUV Sales After Consumer Reports Warnings

Toyota Motor is halting sales of its recently introduced Lexus GX 460 sports utility vehicle after road tests by a leading consumer magazine showed the vehicle be susceptible to rolling over in accident-avoidance maneuvers.

On Tuesday, Consumer Reports said its engineers encountered handling problems at its test track that they believe could lead to real-world rollover accidents. Among the 95 SUVs in CR's current ratings, no other slid as far as the GX 460, CR said.

"We are taking the situation with the GX 460 very seriously and are determined to identify and correct the issue Consumer Reports identified," said Mark Templin, Lexus Group general manager, in the statement. Toyota said it will provide customers who have purchased the model and are concerned about driving their vehicle a loaner car until a remedy is available.

When subjected to a standard track test involving driving the vehicle through a turn as the driver lifts his foot off the accelerator, the rear of the GX 460 slid out until it was almost sideways before the electronic stability control system was able to regain control, the magazine said.

Toyota has suffered from revelations about several quality and safety issues since it recalled millions of vehicles last fall for acceleration problems believed to be associated with bulky rubber floor mats. Other recalls followed, including one for sticky gas pedals which led to the NHTSA fining Toyota a maximum $16.4 million for failing to act quickly enough in notifying the agency of the problem. Toyota has until Monday to accept or contest the penalty.

It remains to be seen how this latest issue will affect sales of Toyota and Lexus vehicles. The world's largest auto maker saw its sales rise some 40% in March thanks to generous incentives, including zero-interest loans and cheap leases.

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