U.S. begins probe of Prius as Toyota woes mount

WASHINGTON/DETROIT, (Reuters) – Toyota Motor Corp,  already reeling from two massive recalls, faced the possibility  of a third when U.S. safety regulators opened a probe yesterday into a braking problem on the Prius, the world’s  top-selling hybrid.

The probe of the Prius, which has powered Toyota’s image of  fuel efficiency, compounds a safety crisis that has hit its  sales, financial results and reputation for quality and  prompted the recall of more than 8 million vehicles around the  world for problems with uncontrolled acceleration.

Separately, Ford Motor Co said it would roll out a software  patch for consumers to address a reported problem with braking  on its hybrid Ford Fusion and Mercury Milan models.  ID:nN0497845

Analysts and rivals say the Prius has emerged as a kind of  environmental “halo car” for Toyota, an icon of green design  with an intense following among loyalists, which has lifted the  public image of the whole company.

The Nikkei newspaper reported that Toyota would recall an  estimated 270,000 units of its new Prius in the United States  and Japan to fix the brake problem.

Toyota spokesman Mike Michels said he could not comment on  that report. He said the automaker had no plans to suspend  sales of the Prius as it did with eight other models recalled  for a faulty accelerator pedal.

Like the more popular Prius, the Ford hybrids capture the  energy from braking to recharge an on-board battery to boost  mileage from its gasoline engine.

Ford said its software fix would address the way the  traditional brakes and the regenerative braking systems  interact. The same broad set of issues affects the Prius.

Ford’s action came after Consumer Reports said one of its  test engineers had experienced what appeared to be a loss of  braking power with a Fusion hybrid.

Ford said it was aware of one minor accident related to the  braking problem but no injuries.

Ford shares were ended almost 5 percent lower yesterday.  Shares of Toyota dropped another 2.3 percent in New York yesterday. The stock has lost 20 percent since it announced a  sweeping recall for accelerator problems in late January. The  recall has also wiped $30 billion from Toyota’s share value.