Toyota Shares Jump After US Safety Report

VOA Breaking News
Voice of America
February 9, 2011 at 7:15 am

Toyota shares rose in early trading Wednesday following the results of a U.S. investigation that found no electronic flaws in the company's vehicles that would account for problems with unintended sudden acceleration.

Shares in the world's largest automaker were up about five percent at midday in Tokyo, reaching their highest levels since early last year. The company has been troubled by recalls affecting more than 12 million vehicles since late 2009.

Toyota said Wednesday that the U.S. investigation “confirms the reliability” of the company's electronic throttle control systems, which had come under suspicion in connection with reports that vehicles were unexpectedly speeding up even when drivers pressed the brakes.

The company added that it will “continue to listen to our customers even closer” and work to provide vehicles that are not only safe but also “provide peace of mind.”

The 10-month study released Tuesday in Washington was conducted by engineers from the U.S. National Highway Traffic Safety Administration and the U.S. space agency, NASA. It said the acceleration problems were mechanical rather than electronic.

Engineers had said previously that sticking accelerator pedals caused some of the problems, while loose floor mats sometimes accidentally pressed accelerator pedals.

Toyota surpassed General Motors to become the world's largest automaker in 2008, and is projecting increased profits in spite of setbacks caused by the recalls and a rising Japanese yen.