Supplier of accelerator pedals in talks with Toyota to solve the problem
By Andrew C., 29 Aug, 2010. 0 Comments
Talks 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]
0 Responses
Leave A Reply
Latest Auto Shows
