Toyota to recall 3.8 million cars

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Toyota shares drop as recall investigation widens

Shares of Toyota dropped Wednesday after the U.S. Transportation Secretary advised owners of the company's recalled cars to stop driving them.

Ray LaHood's spoke before a House subcommittee one day after the automaker reported disappointing January sales and an investigation widened into sticky gas pedals that prompted a massive recall.

LaHood said later that he only meant that Toyota owners should take the cars back to the dealer to have problems fixed.

Toyota pauses to fix pedals

Toyota said Tuesday that it was suspending U.S. sales of eight recalled vehicle models to fix accelerator pedals that stick, the most recent quality problem to confront the world's No.1 automaker.

As part of the plan, Toyota said it was halting production at five factories for the week of Feb.1 "to assess and coordinate activities." There are 2.3million vehicles involved in the recall, which was announced last week.

"This action is necessary until a remedy is finalized," said Bob Carter, Toyota's group vice president and general manager.

Lawmaker concerned about Toyota recall

A House Democrat expressed concern Wednesday about a massive Toyota recall that has led the automaker to stop manufacturing and selling vehicles linked to problems with gas pedals, signaling that Congress could soon review the massive recall.

Michigan Rep. Bart Stupak, who leads an investigative subcommittee, said his staff would meet with Toyota officials on Wednesday following the automaker's decision to suspend U.S. sales of eight of its vehicle models, including the Camry, the best-selling car in the United States. The company is also halting production at assembly lines at six North American car plants, beginning the week of Feb. 1.

"We want to find out what Toyota knows about the sudden acceleration problem with several of their vehicles and we want to know what will be done to protect consumers who are currently driving those vehicles," Stupak said in a statement.

Still no word from Toyota on Prius recall

Toyota is close to recalling as many as 300,000 of its popular Prius hybrids over brake problems, according to Japanese media - a decision that would further embarrass a trusted brand suddenly beset by safety problems.

The company may have no choice: A week has passed since the problems emerged, and analysts say further delays could be devastating to the automaker's already damaged reputation in a global market it fought for decades to dominate.

"Listening to management now, I think they still think there isn't a real problem with the Prius," Christopher Richter, auto analyst at CLSA Asia Pacific Markets, said Monday.

Toyota Prius brake complaints climb to about 180

Complaints in the U.S. and Japan about brake problems in Toyota's popular Prius hybrid have swelled to about 180, adding to the string of quality troubles for the world's biggest automaker.

The news Thursday of a significant number of new brake complaints comes as Toyota grapples with massive global recalls - linked to faulty gas pedals and floor mats that can jam accelerators - that are battering its image.

The latest 77 complaints in Japan involve the new Prius model, which went on sale in Japan and the United States in May 2009, Toyota spokeswoman Ririko Takeuchi said. The Prius was Japan's top-selling car last year.