Toyota recalled nearly 1.7 million cars worldwide

28 January 2011 - Toyota recalled nearly 1.7 million cars worldwide Wednesday for possible fuel leaks, the latest in a ballooning number of quality problems that could further tarnish the company's reputation in the United States.

The recalls are mostly in Japan, but include Lexus IS and GS luxury sedans sold in North America. That's where the world's No. 1 car company faces the biggest challenges in winning back customer trust.

U.S. dealers will inspect cars to see if loose fuel pressure sensors caused leaks. There were no accidents suspected of being caused by those problems, according to Toyota. The car maker has received 77 complaints overseas, 75 of them in North America, and more than 140 in Japan.

The latest quality hitch follows a spate of recalls that began in late 2009, mostly in North America, which now cover more than 12 million cars and trucks. The recalls involve defective floor mats and gas pedals that get stuck, some of them suspected of causing unintended acceleration.

Wednesday's recalls come exactly one year after Toyota stopped selling eight models in the U.S. because of unintended acceleration problems. The sales suspension affected 60 percent of Toyota's lineup in the U.S., and was the first of four sales halts last year. .

Koji Endo, auto analyst with Advanced Research Japan Co. in Tokyo, said the newest recalls will cost Toyota about 20 billion yen ($240 million), but won't hurt its earnings much.

"But there is that perception of here we go again, and that hurts Toyota's image, especially in North America," he said.

The biggest damage to Toyota's image has been in the U.S. where its response to safety problems was seen as slow. The company's U.S. sales lagged last year despite an industry recovery. Some believe that Toyota's relentless drive for growth hurt quality.

The company has lost some potential U.S. customers: A survey done by consumer website Edmunds.com showed that 17.9 percent of all car shoppers last month were considering a Toyota, a 3.8 percent point drop from a year earlier. That drop in consideration could be blamed on Toyota's recalls, as well as its aging lineup.