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Toyota Says Seven Lexus Models May Have Problem Causing Engines to Stall

By Takako Iwatani - 2010-07-01T04:15:11Z

Toyota Motor Corp. said 270,000 of its Lexus-brand vehicles may have a problem causing engines to stall, less than a week after the Japanese carmaker stopped selling another Lexus vehicle because of a risk of fuel leaks.

As many as seven Lexus models and Toyota’s Crown may be affected, and the carmaker is considering its next step to address the problem, spokeswoman Ririko Takeuchi said by phone in Tokyo today. The company may recall the Lexus LS460 sedan because of engine stalling, Nikkei English News reported earlier, without saying where it got the information.

The world’s biggest carmaker is working to restore its reputation for quality after recalling about 8 million vehicles globally for defects linked to sudden, unintended acceleration. The company, based in Toyota City, Japan, recalled about 13,000 Lexus GX 460 sport-utility vehicles in April after Consumer Reports magazine labeled the model a “safety risk” because it could roll over under certain driving conditions. The designation was removed in May.

“If Toyota decides to recall the models, concern that customers may avoid the Toyota brand is bigger than the potential cost of the recall,” said Satoru Takada, an analyst in Tokyo at TIW Inc.

Toyota said on June 25 it would stop selling its new hybrid HS250h sedan because of too much fuel spilled in government crash tests, posing a fire risk. The company, which paid a record $16.4 million U.S. fine this year for not complying with auto-safety regulations, said in a letter to the U.S. National Highway Traffic Safety Administration that about 17,000 of the HS250h sedans for the 2010 model year were being recalled.

The models with engines that may stall are the Lexus GS 350, GS 450h, GS 460, IS 350, LS 460, LS 600h and LS 600hL, and the Toyota Crown, the company said today. About 90,000 vehicles may be affected in Japan, Takeuchi said.

Some models with 4.6-liter and 3.5-liter engines have a problem with valve springs that may, in the worst case, cause the engine to stall, Takeuchi said.

To contact the reporter on this story: Takako Iwatani in Tokyo at tiwatani@bloomberg.net