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Toyota recalls a quarter million luxury cars as safety concerns mount

Toyota Motor Co. (NYSE: TM) has issued a safety recall involving 264,000 of its luxury cars over faulty fuel pipes. Included in the recall are 49,000 Lexus vehicles sold overseas.

The recall is a result of faulty fuel pipes that pose the threat of cracks and corrosion which could result in fuel leakage. So far there have been no reports of any injuries related to this problem, but there have been 39 cases of troubles in Japan from the defect.

It has been a tough week for Toyota. On Tuesday the company entered into a civil trial that claims the company produced and sold thousands of Corollas equipped with unsafe seatbelts. In this civil case, 19 year old Gurinder Singh claims that his 60 year old father would still be alive if not for a faulty seatbelt in his Toyota Corolla.

Singh states that during an accident in January 2003, his father was unable to release his seatbelt and was burned to death in his vehicle. Singh has whistleblower Katy Cameron, who worked at the plant where Singh's Corolla was built, on his side. Cameron claims that managers at the Fremont-based New United Motor Manufacturing Inc. plant allowed cars to pass inspection with broken seatbelts as well as other serious defects.

Cameron has alleged that when she pointed out the problems to her managers, instead of fixing them, they opted to lash out and demote her for questioning the products. Toyota denies Cameron's claims and states that the company has an altogether different take on the situation.

Last month, Toyota was forced to recall 470,000 vehicles as a result of problems with fuel lines and steering.

For more information on the current recall you can contact Lexus Customer Satisfaction at (800) 255-3987.

Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer.

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Last updated: December 02, 2008: 07:08 PM

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