OSHAWA -- Toyota can't build its most popular cars. The company can't sell them. It can't even fix them yet.
And now rivals are starting to circle like sharks around the stalled auto giant in the viciously competitive auto industry.
In the biggest crisis in Toyota's history, the company and a Mississauga parts supplier are working feverishly to find a solution to the nagging problem of sticking accelerator pedals and runaway cars, and to deal with questions about safety that have dogged the automaker and shaken consumer confidence in North America for months. The fallout has extended to General Motors, which is recalling the Vibe in response to the problem.
"Our focus is to get the remedy in place as soon as possible," said Mike Goss, external affairs manager for Toyota Motor Engineering and Manufacturing North America. "But right now, we don't have the remedy in place."
The difficulties of the 73-year-old Japanese automaker worsened early Thursday when it announced a new recall over floor mat problems. The troubles have prompted General Motors to offer special incentives to Toyota owners. Furthermore, some major rental companies, including Avis Budget Group, indicated they would remove some Toyota models from their fleets.
Toyota is collaborating with Indiana-based CTS Corp., which makes the key pedal parts at a plant in the Streetsville area of Mississauga, for delivery to several assembly operations in the U.S. and Canada.
CTS, which is primarily a producer of sensors, is testing a new pedal design at Toyota operations, but the automaker suggested it is not clear yet what will work so the company can proceed with auto repairs under a massive recall of about 2.6 million vehicles.
"We have two viable options and we're in the process of finalizing the option," said Mr. Goss. "This is not an electronic problem but a mechanical problem."
Mr. Goss also stressed that the company, the world's biggest automaker, is not blaming the supplier and noted "this is ultimately Toyota's responsibility."
Last week, Toyota recalled 2.3 million vehicles in the United States and about 270,000 in Canada, including the Corolla, the second-best-selling vehicle in the market.
Other autos in the recall are the current and recent model-year versions of the Camry and Avalon cars, Matrix crossover, Tundra pickup truck and the RAV4, Highlander and Sequoia sport utility vehicles.
But concerns escalated when Toyota announced Tuesday that it would also temporarily stop selling and producing the same models in North America after the U.S. government urged further action.
The company is idling six assembly operations that make the eight models for one week starting Monday, including plants in Cambridge and Woodstock. But instead of layoffs, about 5,000 employees who build the Corolla, Matrix and RAV4 here will receive extra training, work on improving operations or take vacation time.
Toyota said that "in rare instances," certain accelerator pedal mechanisms may stick in a "partially depressed position or return slowly to the idle position."
The moves triggered anger and concern from consumers who have complained for months about sticky pedals with little response from Toyota, which has built a stellar reputation for quality and durability during the past two decades.
Early Thursday, Toyota said it would recall an additional 1.09 million vehicles in the United States because of the risk of floor mats interfering with accelerator pedals. Toyota said the fresh recall would affect five models -- 2008-2010 Highlander, 2009-2010 Corolla, 2009-2010 Venza, 2009-2010 Matrix, and 2009-2010 Pontiac Vibe.
Dealerships that now can't sell a good portion of Toyota's lineup received a flood of calls from consumers about the safety of their cars and when the firm would fix them.
In notes on retailer websites, dealers have told customers who experience a sticking pedal to control the vehicle by applying "stronger brake pedal pressure," then drive to a safe place and contact a store.
"I just want justice," said Sheila Manley, who finally received a response this week from Toyota for an inspection after her Matrix jumped a curb and slammed into a wood pile at a Burlington mall in October.
Ms. Manley, who said she was in shock but unhurt, said she had complained earlier about a sticky pedal, but received no replies. She now wants Toyota, and not the insurance company, to pay the $4,000 repair bill for her car's front bumper and right light.
Harry Green of Richmond Hill said he bought a new Matrix two weeks ago because of Toyota's reputation, but is now angry the company didn't inform him of a possible issue with the pedal.
"They must have known something then," said Mr. Green, who noted he could also still be driving an unsafe car. "Why didn't they tell me there might be a problem? I'm not saying they're dishonest, but it behooves Toyota to do a little soul searching and be honest."
Late last year, Toyota sent letters to owners of more than 200,000 cars and trucks under a "safety improvement campaign" whereby the company could make changes to avoid any chance of runaway acceleration because of what it described as "the risk of pedal entrapment by incorrect or out of place accessory floor mats."
Some industry watchers said the current crisis would permanently hurt Toyota, but other analysts described it as a temporary setback.
"I think Toyota is too good and too smart to let this permanently hurt their brand," said Bill Pochiluk, president of Automotive Compass.
Chris Travell, vice-president of the automotive practice at Maritz Research, said although the situation is challenging, Toyota will likely bounce back.
Mr. Pochiluk added that automakers such as Hyundai and Ford faced larger controversies over the years relating to quality and safety, but have recovered and turned into top industry performers.
He noted there will likely be some "conquest" sales by other automakers like Honda, Mazda, Ford and GM, but said it will be short term.
Tony Van Alphen and Dana Flavelle are reporters for the Toronto Star
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