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Toyota issues stop sale on 6 key models over seat fabrics; recall possible? [UPDATE]

Toyota has issued a stop-sale order on six of its core models due to concerns about the flammability of certain seat fabrics. The issue rests not with the cloth and leather covers themselves, but with a piece of seat heater beneath them that fails to meet US Federal Motor Vehicle Safety Standards for flame retardancy.
There have been no reports of fires or injuries from the affected cars, which include some of Toyota's biggest volume sellers. 2013 and 2014 Camry, Camry Hybrid, Avalon and Sienna models equipped with heated seats are included in the stop-sale, as are 2014 Tundra pickups and Corolla sedans. The exact number of vehicles with the non-compliant materials are still being tabulated, according to The Detroit Free Press.
According to a Toyota spokesman, the National Highway Traffic Safety Administration has been notified, although it remains to be seen if a recall will be issued. Outside of a full recall, though, it's unclear how Toyota will deal with vehicles equipped with the flammable materials that have already found homes.

Toyota Matrix not long for this world?

According to a report from AutoGuide, Toyota doesn't have plans to replace the aging Matrix hatchback in the United States after this year. If true, the timing coincides with the replacement for the Corolla, on which the Matrix is based, with that car slated to get its first complete redesign since 2006 (2008 in the US market).
We'd love to tell you how many Matrix models were sold by Toyota in the United States last year, but the automaker chooses to bundle Matrix sales with Corolla sales, so we have no idea. That said, we have to assume sales of the hatchback don't contribute much overall to the total number of Corolla-based machines.
We're also unsure if Toyota will choose to exit the youth-oriented compact hatchback market entirely, or if the automaker will rely instead on its hybrid Prius line and Scion models like the xB and xD.

Tesla pulling plug on Toyota RAV4 EV battery deal

The future of the Toyota RAV4 EV appears to be in doubt. Tesla supplies the EVs battery packs, and it says that production ends later this year.
"Toyota is expected to end the current RAV4 EV model this year," Tesla said in its quarterly financial filing obtained by Bloomberg. "Our production activities under this program are expected to end in 2014," the company said.
This timeline fits closely with the original production plans for the RAV4 EV. When the $100-million project was first announced, Tesla said that it expected to supply battery packs for the vehicle from 2012 to 2014. Building components for the Japanese automaker continues to bring in money, though. In the company's Q1 2014 letter to shareholders, it said: "Automotive revenue included $15 million of Toyota powertrain sales." According to Bloomberg, Toyota has sold just 1,594 RAV4 EV models from 2012 through April 2014. Initially, the business had estimated that it would sell 2,600 units of the electrified crossover.