Supplier of accelerator pedals in talks with Toyota to solve the problem

2010 Toyota CorollaTalks are ongoing between Toyota Motor Corp. and CTS Corp., the supplier of accelerator pedals used on eight vehicle models that were recalled, to come up with a remedy. Last Thursday, 2.3 million Toyota vehicles were recalled due to the risks associated with accelerator pedals sticking and slow to return once a driver released pressure. Last Wednesday, CTS spokesman Mitch Walorski said that CTS continues to supply Toyota with pedals made at its plants in Streetsville, Ontario, Canada. As a result, CTS shares were down 16.11% at $7.24 in early afternoon trading Wednesday on the New York Stock Exchange. CTS, which has been the supplier of Toyota for its auto parts needs since 2005, has annual sales of about $600 million. Walorski said that Toyota makes up about 3% of its sales and the pedals make up almost all of its business with Toyota. CTS has been made aware of eight incidents in which a pedal it made got stuck in a Toyota vehicle but Walorski says that none of those incidents led to an accident, injury, or a sudden burst of acceleration. [via autonews - sub. reqiured]

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