Japanese automaker Toyota Motor Corp. (TM) Tuesday announced the recall of four of its models sold in Japan due to problems related to the software program that controls the vehicles' antilock braking system. The carmaker said it will callback approximately 223,000 vehicles of Prius, Prius Plug-in Hybrid, Sai and Lexus HS250h models.
Toyota also stated that it has submitted notifications earlier today to Japan's Ministry of Land, Infrastructure, Transport and Tourism in connection with the recall, and the notifications are in regard to the braking systems employed in those four models.
Toyota's President Akio Toyoda said in a statement that the recall pertains to about 400,000 vehicles worldwide. "We will take appropriate measures as soon as possible for the good of our customers in the United States, Europe and in other regions," Toyoda said.
Toyota had been going through a tough time recently, recalling 7 million vehicles worldwide over concerns that sticky gas pedals could endanger drivers and passengers in eight Toyota models. On January 26, Toyota was forced to suspend the sales of eight models, including that of best-selling Camry. Toyota estimated that this global recall will cost up to 180 billion yen, or US$2 billion, with 100 billion yen, or US$1.1 billion, for repairs. The company also estimated that lost sales will cost up to $880 million.
Adding to these woes, fresh reports emerged that Toyota's flagship model Prius has a faulty brake system. On February 4, the National Highway Traffic Safety Administration, or NHTSA, announced the opening of a formal investigation into allegations of momentary loss of braking capability in the 2010 Toyota Prius Hybrid while traveling over an uneven road surface, pothole or bump. According to the Transportation Department, the Office of Defects Investigation received 124 reports from consumers, including four reports alleging that crashes occurred.
Transportation Secretary Ray LaHood then said the NHTSA will "continue to hold Toyota's feet to the fire to make sure that they are doing everything they have promised to make their vehicles safe."
Toyota said today that drivers of the four recalled models can experience reduced braking performance resulting in increased braking distance when their vehicles switch to hydraulic braking-only to activate antilock braking system, or ABS, at slow speeds. ABS is used to stabilize vehicles on slippery surfaces, such as snowy and icy roads. In ordinary driving conditions, both a hydraulic braking system and a regenerative braking system work in unison. The company also stated that applying increased pressure to the brake pedal when ABS has taken effect will yield the intended braking performance.
Further, Toyota said its corrective ABS software programming will resolve the problem. The company will begin notifying owners through its dealers today, and dealers will begin conducting the corrective reprogramming on February 10. The reprogramming is expected to take approximately 40 minutes per vehicle.
According to Toyoda, the company's dealers will inform customers who have purchased the Prius model in question over the next few days. He urged the owners to take their vehicles into the dealers for a repair to correct the problem.
In addition to the Prius, Toyota is currently preparing remedies for the other three models. The company will suspend sales of those three models, or suspend deliveries to customers in the case of completed purchases, until the preparation of solutions.
"I will take charge personally of a coordinated effort by everyone at Toyota, at our dealers, and at our suppliers to regain the confidence of our customers. And I assure you we will devote ourselves—heart and soul—to that effort," Toyoda added.
Toyoda had said in a press conference held on February 5 that the Committee headed by him will conduct various improvement initiatives on the quality of the company's products. Toyota will once again inspect every process - quality in design, quality in production, quality in sales and quality in service - while verifying the causes that led to the recalls. The company intends to enhance its customer information research offices to improve regional information collection.
Further, Toyota plans to establish an "Automotive Center of Quality Excellence" in key regions to develop quality-management professionals. The company will also seek confirmation and evaluation from outside experts of its newly improved quality-control management, based on the above improvements.
For the recently closed third quarter, Toyota reported net income of 153.2 billion yen, compared to a loss of 164.7 billion yen in the year-ago quarter. Sales totaled 5.3 trillion yen in the quarter, up 10.2% from 4.8 trillion yen in the same period last year.
However, Toyota's January sales have dropped 8.7% year-over-year to 98,796 vehicles on a daily selling rate basis.
On the NYSE, TM closed Monday's trading at $72.85, down $1.86 or 2.49%, on a volume of 3.64 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.