Toyota to test all SUVs after Lexus sales halt

Toyota Motor said on Thursday it would conduct safety tests on all its sport utility models after a report claiming that a handling problem in a new version Lexus put drivers at risk of rollover accidents.

Toyota took the unusual step of stopping sales of the Lexus GX 460 after Consumer Reports magazine warned against buying the vehicle and called it a "safety risk" because of a potential handling problem in turns.

Toyota first moved to suspend Lexus GX sales in the United States earlier this week and then extended that sales halt to the Middle East and Russia, the other markets where it is sold.

The move focuses renewed attention on Toyota's safety and quality at a time when the world's largest automaker has been struggling to recapture lost sales momentum after a string of damaging global recalls.

Even though the Lexus GX has been a low-volume model for Toyota, its potential safety problem threatens a further erosion in the once market-leading reputation of Toyota's luxury Lexus brand, one analyst said.

"Even though the vehicle's volume is a relatively small part of (Toyota's) sales, as Toyota's quality issues are now affecting Lexus too, we think the cost to repair the dented brands is poised to rise," said S&P equity analyst Efraim Levy.

The Lexus GX starts at $50,000 in the U.S. market and the high-margin on the premium vehicles developed using Toyota's mass-market vehicle platforms and parts has been a key part of its past financial success.

The Lexus GX 460, which is based on the same platform as the better-known 4Runner, has sold 5,400 units in the United States and Canada in the four months since it has been on the market. Another 580 units have been sold in the Middle East and Russia.