At the Toyota Motor Corp.'s market meltdown, the recall-plagued auto giant's shares rise. Toyota officials said that they were considering a recall of the 2010 Prius hybrid because of a flaw in the car's antilock braking system. The recall would affect at least 103,000 new Priuses in the United States, 176,000 in Japan and about 32,000 in Europe.
Toyota is looking into the two other hybrids with the same braking system - the Lexus HS250h as well as a Japanese model, the Sai. Toyota's credibility is at stake as the company examining the problem on the Prius is unsure of the cause. Washington government has ordered the company to investigate the brakes.
Meanwhile, the Ford Motor Company said that there was a problem with the brakes of another hybrid car, the Ford Fusion. David Champion, Director of Automotive testing for the publication Consumer Reports said, given the amount of negative attention surrounding Toyota the carmakers need to be active to build the reputation as the brand image depends upon the safety and reliability of their cars. Toyota projected recall-related expenses of 100 billion yen ($1.1 billion) and 70 to 80 billion yen ($770 million to $880 million) in lost sales revenue during ongoing adversity. Toyota halted sales of eight models until it could develop a solution.
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