Probe finding boosts Toyota

09:17, February 10, 2011      

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Toyota shares jumped 4.6 percent to a nine-month high in yesterday's morning trading in Tokyo following a United States government report that ruled out electronic flaws in runaway Toyota vehicles.

The Japanese auto maker welcomed the findings as confirming the reliability of its cars.

Toyota Motor Corp stock finished the morning session at 3,650 yen (US$44) on the Tokyo Stock Exchange, the highest since its close on May 13, buoyed by the results of the 10-month investigation. Overnight on Wall Street, Toyota gained by more than 4 percent to close at US$88.57.

Toyota, the world's biggest auto maker by car sales, revised its full-year earnings and sales forecasts on Tuesday to 7.48 million vehicles in the year through March, up from an earlier forecast of 7.1 million vehicles, and marking a 3 percent rise from 7.24 million in the previous fiscal year.

After recalling more than 12 million vehicles globally for a range of defects since late 2009, the big lingering question was whether there was a problem with the electronic systems in Toyota cars.

That would signal a huge problem, possibly resulting in additional massive recalls, as such systems are in every Toyota vehicle. It would further shatter the once sterling image for quality production that Toyota had boasted for decades.

In Washington, the Department of Transportation said its probe with NASA found that electronic flaws weren't to blame for the reports of sudden unintended acceleration.

Source: Shanghai Daily
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