Toyota halts Lexus SUV sales on 'safety risk'
Toyota Motor Corp. asked Lexus dealers in North America to halt sales of GX 460 sport-utility vehicles after Consumer Reports labeled the model a "safety risk," the magazine's first such designation in nine years.
"We are taking the situation with the GX 460 very seriously and are determined to identify and correct the issue Consumer Reports identified," Mark Templin, U.S. general manager for the luxury brand, said in an e-mail.
The 2010 GX 460 received the designation and a "don't buy" recommendation because emergency driving tests indicated it may be prone to rollover accidents, Consumer Reports said yesterday. The non-profit magazine, published by Yonkers, New York-based Consumers Union, said it hadn't deemed any other vehicle a safety risk since 2001.
The rating complicates Toyota's efforts to repair its image after recalling more than 8 million vehicles worldwide for defects linked to unintended acceleration and brakes, actions that led to U.S. congressional hearings and a rebuke by Transportation Secretary Ray LaHood.
The U.S. assessed a $16.4 million penalty against Toyota for delaying a recall of sticky accelerator pedals and said there may be more fines.
"Consumer Reports is a large and noteworthy publication with legions of fans, and therefore we can expect the 'headline' effect will take another round's toll, much to Toyota's chagrin," James Bell, an executive market analyst for Kelley Blue Book, said in an e-mail. The magazine's report "may 'scratch the scab' before healing was complete," Bell said.
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