This Article is From Apr 24, 2010

Toyota to recall 1,00,000 Corollas in Brazil?

Sao Paulo: Toyota is recalling 100,000 Corolla model cars sold in Brazil over acceleration problems, a consumer protection group has said after meeting with the Japanese automaker. The recall comes a day after the Brazilian state of Minas Gerais ordered a ban on the sales of the best-selling car, saying the vehicles presented a safety threat.

After a meeting with consumer advocacy bodies yesterday, Toyota said it would review the condition of the vehicles' floor mats, which authorities and manufacturers have pinpointed as the source of several accelerator problems that led to accidents, according to Sao Paulo-based consumer protection agency Procon. "The recall is aimed at safeguarding the health and safety of Brazilian consumers," said Procon in a statement. Toyota "will inform consumers (of the recall) in the coming days," it added. Procon estimates that some 100,000 vehicles are involved in the recall.

The Minas Gerais ministry said nine Toyota Corollas in the state had shown accelerator problems that the Japanese auto giant said were caused by badly-installed driver-side floor mats. Ratings agency Moody's on Thursday downgraded the beleaguered automaker, saying uncertainty over "product quality" following mass recalls raised questions over its profitability.

In the United States on Monday the company agreed to pay a fine of 16.4 million dollars, the largest for an automaker in the country, for hiding for at least four months accelerator pedal defects blamed in more than 50 US deaths.

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