Toyota Ordered by U.S. Grand Jury to Submit Report on Steering-Rod Flaws

Toyota Motor Corp., facing more than 325 U.S. lawsuits after recalling more than 8 million vehicles to fix defects, was ordered by a U.S. federal grand jury to submit a report on steering-rod problems.

Toyota announced the order in a statement today to the Tokyo Stock Exchange. “The company and our subsidiaries will cooperate with the investigation with sincerity,” Toyota said in the statement, without elaborating.

Toyota recalled more than 8 million autos worldwide in the 11 months since an off-duty California Highway Patrol officer and his family were killed in August 2009, when the Lexus ES350 sedan he was driving sped out of control near San Diego. Reviews by Toyota and government investigators pinned the cause to a gas pedal trapped by the floor mat, leading to a September 2009 warning that owners should remove driver’s side mats.

“It may lead to another recall with other models, and if lawsuits start taking place, it will affect the company’s earnings performance,” Satoru Takada, an analyst in Tokyo at TIW Inc., said of the grand-jury order announced today. “It could impact its performance and share price.”

Toyota’s Tokyo-based spokeswoman Ririko Takeuchi declined to say which models have the parts with problems.

“The document says everything the company can share right now,” Takeuchi said by phone.

The automaker is facing more than 325 lawsuits in U.S. state and federal courts related to unintended acceleration, which has also been probed by U.S. lawmakers.

Toyota President Akio Toyoda pledged a comprehensive overhaul of quality control steps earlier this month.

Toyota shares fell 2.6 percent to close at 3,055 yen in Tokyo before the announcement.

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

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