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Toyota, Lexus recall 460,000 vehicles for stability control issue

Toyota and its luxury subsidiary, Lexus, are recalling 460,000 electrified models produced for the 2020-2022 model years to address an issue that can cause the vehicles' stability control systems not to activate on startup. If you drive a new Toyota or Lexus and it has at least one electric motor in it (or it's the new LX 600), there's a better-than-even chance you'll be hearing from your dealer in the coming months. The good news for owners is that the issue is one of compliance, rather than something which may immediately endanger a vehicle occupant.  "A software error can cause the Vehicle Stability Control system (VSC) not to default to ON the next time the car is started under certain circumstances. This can result in a noncompliance with applicable regulations in the U.S," Toyota said in its announcement. "For all involved vehicles, Toyota and Lexus dealers will update the software of the Skid Control ECU free of charge to customers." Included in the campaign are the 2020-2022 Toyota Venza, Mirai, RAV4 Hybrid, RAV4 Prime, Sienna Hybrid, and Highlander Hybrid. On the Lexus side, it hits the LS500h, LX600, NX350h and NX450h+. Notably absent here are the Tundra-based trucks with the new iForce Max hybrid, though Toyota may have addressed the issue in those models before they went on sale. On the other side of the coin, the LX 600 — a purely ICE model for the time being — managed to stumble into the defect pool.  Toyota says owners should receive notices before the end of June. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Green Recalls Lexus Toyota Safety Luxury

Toyota projecting record profits, thanks in part to weak yen

Toyota retained its global sales crown in 2014 by selling 10.23 million cars in the calendar year. As the positive number might suggest, the Japanese automaker is doing extremely well financially, too. Although, some tougher times might be on the horizon. Toyota recently released its financial figures for the three fiscal quarters running from April 1 through the end of December 2014. Net profit jumped an impressive 13.2 percent to 1.727 trillion yen ($14.7 billion) for that period. It could be the Japanese automaker's most profitable time ever when the fiscal year ends in March, if things keep going this way, according to The New York Times. Toyota's own profit forecast for the 12-month period is also up by 130 billion yen ($1.1 billion) to 2.13 trillion yen ($18.1 billion). One key to the company's success is the low value of the Japanese yen, because it allows Toyota to make more money on each vehicle the company sells abroad. The currency is now worth relatively less than any time since the early '70s, according to The New York Times. Despite the rosy financial numbers, actual sales have started to fall, albeit a very slight amount. Through the three fiscal quarters, the company sold 6.73 million cars, a drop of just 45,365 vehicles. Toyota also reduced its forecast for the fiscal year to 9 million units, rather than the original estimate of 9.05 million. According to The New York Times, the shrinking Japanese auto market and difficulty in China might mean losing the global sales lead next year. For the US, sales jumped 145,411 units from April through December to a total 2.1 million vehicles. Operating income reached $4.27 billion, nearly 50 percent more than last year, according to The New York Times. Toyota Motor Corporation (TMC) Announces April – December 2014 Financial Results February 04, 2015 Toyota's global net income jumped 13.2 percent during the nine-month period (April 1– December 31, 2014) of the 2015 fiscal year. Global Financial Highlights: Global sales decreased by 45,365 vehicles to 6.73 million, with strong sales in North America and gains in Europe, offsetting decreases in Japan and other regions.

Legal approach in $1.2 billion Toyota settlement could impact handling of GM recall cases

In the past, if an automaker did something wrong, they were usually prosecuted by the US government through something called the TREAD Act. Short for Transportation Recall Enhancement, Accountability and Documentation Act, it basically requires automakers to report recalls in other countries, along with any and all serious injuries or deaths, to the National Highway Traffic Safety Administration.
Failing to report or attempting to conceal anything when there's been a death or serious injury constitutes a criminal liability. The idea is that this setup puts the onus on manufacturers to keep NHTSA apprised of safety related issues before they become a problem in the US, thereby allowing the regulator to better protect consumers.
In theory, it sounds like a relatively airtight set of rules for dealing with misbehaving automakers. That didn't stop the US Department of Justice from ignoring TREAD in its prosecution of Toyota's handling of the unintended acceleration recall, though. The result of this new approach, which charged Toyota with wire fraud, was a $1.2 billion settlement. Now, the wire-fraud approach could be used for the expected case between the US government and General Motors, based on the statements of Attorney General Eric Holder, who specifically mentioned "similarly situated companies" when discussing Toyota.