Prius Cars To See Recalls As Toyota Tries To Repair Brakes (TM)

Toyota Motor Corp. (ADR) (NYSE: TM) is expected to recall as many as 437,000 hybrid cars from around the globe in a move aimed at repairing faulty braking systems. The recall will involve 4 models, which includes the best selling Prius. This will add to the almost 8 million vehicles that the company has already recalled for repair.

President Akio Toyoda announced at a press conference in Tokyo that Toyota would also halt sales of SAI and Lexus HS250h sedans as well as Prius plug-in hybrids.

This is likely to tarnish the reputation of the company, which has seen its name already sullied in the wake of these unprecedented recalls. Toyota has already seen $31 billion being wiped off from its market capitalization since January 21.

“The Prius is synonymous with hybrids and therefore, given the scale, the recalls can erode consumers’ trust in these cars,” said Tatsuya Mizuno, director of Mizuno Credit Advisory in Tokyo. “The damage to Toyota is huge as the Prius was such a high profile model.”