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Toyota freezes all sales of 8 models, leaving all dealerships dead in the water

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Old 01-26-10, 03:34 PM
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O. L. T.
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Default Toyota freezes all sales of 8 models, leaving all dealerships dead in the water

http://www.marketwatch.com/story/toy...-01-26-1754560

SAN FRANCISCO (MarketWatch) -- Toyota Motor Sales (TM 86.45, -0.33, -0.38%) said late Tuesday that it is instructing its dealers to temporarily halt sales of eight models involved in a recall for sticking accelerator pedals. "This action is necessary until a remedy is finalized. We're making every effort to address this situation for our customers as quickly as possible," said Group Vice President Bob Carter. Toyota last week announced a recall of about 2.3 million vehicles to fix accelerator pedals on specific Toyota models. The affected models are RAV4, Corolla, Matrix, Avalon, Camrys, Highlander, Tundra, and Sequoia.
What do you do when the manufacturer says all your models that make your money CANNOT BE SOLD? Dealerships will suffer families of salesmen will suffer, this is very bad for "PEOPLE", screw the repercussions to Toyota. The PEOPLE are suffering, dealership owners, employees, families.
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Old 01-26-10, 03:34 PM
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beat me to it.

Just saw this alert on Associated Press wire.
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Old 01-26-10, 03:37 PM
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A stop-sale order is as bad as it gets. Toyota's fall from grace has been nothing short of epic. Absolutely horrendous.

I'm not sure what my next car will be, but I'm pretty sure it won't be a Toyota.
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Old 01-26-10, 03:37 PM
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This is likely in response to the press reports from a few days ago:

Toyota still selling new vehicles under recall, claims they are safe
Jan 22, 2010

http://content.usatoday.com/communit...-same-pedals/1

The suspect pedal assemblies from CTS Automotive Products, based at Elkhart, Ind., appear to have worn prematurely, he says. Over time, the action of the vehicle's throttle pedal begins to feel rough, then the pedal fails to return quickly when the driver takes his or her foot off the pedal. "Worst case, it sticks open," he says.

Toyota said in a report to the U.S. National Highway Traffic Safety Administration (NHTSA) that CTS made the assembly in its Ontario facility. CTS didn't reply Friday to requests for comment on whether its other customers bought the same design and therefore could be forced into recalls, too. NHTSA said Friday it is asking CTS that very question.
No Lexus or Scion vehicles are affected, according to the stop sale notice.
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Old 01-26-10, 03:41 PM
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Is none of this crossed over to the Lexus models at all?????? It's all toyota electronics. Are they just ignoring this and sweeping it under the rug or are there no crossover parts in the electrical system for the sensors?
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Old 01-26-10, 03:43 PM
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As noted in the USA Today link I provided, it has to do with a pedal mechanical part from supplier CTS that can exhibits excessive wear.

It is a very specific pedal part that is shared in those 8 models, but apparently not in Lexus models. The Camry Hybrids are also not affected by this, as they do not use this CTS part, and will continue to be sold.

Last edited by encore888; 01-26-10 at 03:47 PM. Reason: add model
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Old 01-26-10, 04:17 PM
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Originally Posted by AdrianXT
A stop-sale order is as bad as it gets. Toyota's fall from grace has been nothing short of epic. Absolutely horrendous.

I'm not sure what my next car will be, but I'm pretty sure it won't be a Toyota.
Holy drama batman.
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Old 01-26-10, 04:45 PM
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It sucks if you are an Toyota dealer thats for sure, but not selling cars is correct move, even if this might rarely if ever happen... i would call it unprecented move in the history of car sales.

Also, NTHSA is questioning CTS to see who else did they sell the system to.

What I am interested in is they continued sales of Japanese models of same vehicles. They use Denso assembly instead of CTS and work fine. PR does not state that.
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Old 01-26-10, 05:03 PM
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No Lexus Division or Scion vehicles are affected by these actions. Also not affected are Toyota Prius, Tacoma, Sienna, Venza, Solara, Yaris, 4Runner, FJ Cruiser, Land Cruiser and select Camry models, including all Camry hybrids, which will remain for sale.

Due to the sales suspension, Toyota is expected to stop producing vehicles on the following production lines for the week of February 1 to assess and coordinate activities. The North America vehicle production facilities affected are:

• Toyota Motor Manufacturing, Canada (Corolla, Matrix, and RAV4)
• Toyota Motor Manufacturing, Indiana (Sequoia and Highlander)
• Toyota Motor Manufacturing, Kentucky – Line 1 (Camry and Avalon)
• Subaru of Indiana Automotive, Inc. (Camry)
• Toyota Motor Manufacturing, Texas (Tundra)

No other North American Toyota vehicle production facilities are affected by the decision to stop production.





No Lexus models.....yet!
No imported models are covered by the stop sale order. Though the RX is made in Canada.
Different company making the accelerator system in Japan built models?.

Last edited by Joeb427; 01-26-10 at 05:16 PM.
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Old 01-26-10, 05:05 PM
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different companies are awarded contracts for different vehicles...
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Old 01-26-10, 05:07 PM
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i am trying to find out who else does the CTS supply to:

Elkhart, IN…CTS Corporation (NYSE: CTS) has been recognized by Honda Motor Corporation with a “Supplier of Excellence Award for Product Development.” Honda honored CTS on February 12, 2008 at their headquarters in Tokyo, Japan for developing “a compact and low power consumption accelerator pedal with an integrated sensor.” CTS’ accelerator pedal module will be on display for one year in the Exhibition Area in Honda’s Aoyama headquarters. Production for these accelerator pedal modules was launched at CTS’ new Zhongshan, China facility in 2007.
Elkhart, IN…CTS Corporation (NYSE: CTS) today announced that CTS was awarded three additional production programs for its Small Engine Throttle Position Sensor (SETPS) with a total value of nearly $7 million over the life of the programs. The sensors will be built in CTS’ Kaohsiung, Taiwan facility with the first program starting in 2007 and production continuing past 2011. Including these awards, CTS’ SETPS is now utilized by nine customers in seven countries on a variety of motorcycle and scooter applications around the globe.
Elkhart, IN…CTS Corporation (NYSE: CTS) today announced that CTS Automotive Products was awarded seven additional production programs for its Electronic Throttle Control (ETC) Accelerator Pedal Modules by Chery Automotive Co., Ltd. (“Chery”). The pedals will be built in CTS’ new facility in Zhongshan, China starting in the first quarter of 2008. They will be used on a variety of models that will be sold in both China and internationally.

Total sales from these awards are expected to exceed $10 million over the five-year life of the programs. Including these awards, CTS’ Accelerator Pedal Modules have now been selected for use on 63 different automotive platforms.
63 platforms in 2007 ;-).
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Old 01-26-10, 05:10 PM
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Elkhart, IN…CTS Corporation (NYSE: CTS), has been recognized by Toyota Motor Manufacturing North America Inc. (TMMNA) for outstanding delivery and quality performance. Toyota honored CTS Automotive Products’ Canadian manufacturing facility for achieving 100 percent on-time delivery and for shipping accelerator pedal modules with zero defects in 2005.
oops ;-)....
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Old 01-26-10, 05:20 PM
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from 2006:

Elkhart, IN…CTS Corporation (NYSE: CTS), today announced that CTS Automotive Products was awarded a production program from General Motors for its Electronic Throttle Control (ETC) Accelerator Pedal Modules. The pedal modules will be featured on vehicle platforms built in South America and sold throughout Central and South America. Production of these vehicles is scheduled to begin in 2008.

Total sales from this award are expected to reach nearly $18 million over the life of the program. Including this award, CTS’ Accelerator Pedal Modules have been selected for use on 50 different automotive platforms manufactured in North and South America, Asia and Europe.

“This program is a significant win for CTS,” commented Jeff McCurley, Vice President and General Manager of CTS Automotive Products. “We previously provided pedal sensors for GM pedals, but this is our first ETC pedal module award with General Motors, and we are actively quoting several more programs with them. We now sell contacting and non-contacting ETC pedal modules to seven of the top ten global vehicle manufacturers.”
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Old 01-26-10, 05:29 PM
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i have also read that ctscorp has no customer with more than 10% of orders, and that american manufacturers have ordered less than 5% total... so I would expect a lot more recalls to follow this one, as it seems something basic was the issue.
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Old 01-26-10, 05:30 PM
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wow. this is more serious than i thought.
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