Toyota recalls 1.7 million cars
Thu, 27 Jan 2011 02:40:08 GMT
Toyota has recalled almost 1.7 million cars across the world for likely fuel leaks, inflicting another blow to the giant automaker's reputation.
The recalls came on Wednesday after the world's top carmaker diagnosed that an improper installation of a sensor to measure fuel pressure may cause the device to loosen as a result of engine vibrations, and possibly cause fuel to leak, Associated Press reported.
The recalls follow a number of complaints about leaks which the company claims has so far caused no accidents.
The majority of recalls are in Japan and also in North America where recent quality problems in products of world's number one car company has hurt customers' confidence.
Toyota's recall crisis started in North America in late 2009 when it was forced to repair over eight million cars worldwide for defective floor mats and acceleration problems which resulted in accidents in the United States.
In 2010, the car manufacturer halted the sales of eight models in the US, which greatly affected the company's future plans in the country.
Car analysts estimate the recent recalls will cost the company about 20 billion yens ($240 million).
A survey conducted in December 2010 in the US has revealed that customer demand for Toyota has dropped to 17.9 percent, undergoing a 3.8 percent fall in comparison with the previous year.
The company has lately opened two new offices in Houston and Jacksonville, Florida, and intends to open another in Denver in order to accelerate the process of responding to complaints.
Chief Executive Akio Toyoda, the grandson of the automaker's founder, has vowed to regain costumers' trust and respond more quickly to customer demands.