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Toyota suspends sales of 8 models in the US

Beleaguered Japanese manufacturer Toyota is to suspend sales of 8 of its most popular models in the US after faulty accelerator pedals forced it to recall 2.3 million cars last week over.

The sales suspension includes the 2007-2010 Camry and Tundra; the 2009-2010 RAV4, Corolla and Matrix; the 2005-2010 Avalon; the 2010 Highlander; and the 2008-2010 Sequoia.

The carmaker also said it would temporarily halt production of some models at some US plants at the beginning of February.

Last October, Toyota recalled 4.2 million cars in the US because of pedals getting lodged under floor mats and
analysts have said that the suspending of sales of 8 popular models is a big risk.

“The recall itself won’t be a big problem for Toyota’s earnings, but suspending production and sales could have a big impact, depending on how long it lasts,” said Koji Endo, auto analyst at Advanced Research Japan.

Jessica Caldwell at Edmunds.com said: “In this highly competitive market, no automaker, not even Toyota, can afford to stop selling its cars and trucks for long, but perhaps Toyota is banking on the idea that customers will appreciate the priority of their safety in this decision.”

Jan 27, 2010MTI
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