Toyota to announce Prius action plan soon

Toyota said Sunday it will soon announce a plan for dealing with braking problems in its Prius hybrid amid reports that
the world’s largest automaker plans to issue a recall for the latest model of the vehicle in Japan.

Toyota Motor
Corp. has already had to recall more 7 million other cars in the U.S., Europe and China over a sticky accelerator and floor
mats that can get caught in the gas pedal. Those problems and criticism of Toyota’s response to them have sullied the stellar
reputation for quality long enjoyed by the world’s biggest automaker.

Separately, the company has told dealers
in the United States it is preparing to repair the brakes on thousands of Prius vehicles there, according to an e-mail sent
by a company executive. It was unclear whether Toyota planned a formal U.S. recall.

"We will make an announcement
soon on the action we plan to take," spokeswoman Ririko Takeuchi said, commenting on media reports that the company has
decided to issue a Japan recall. Takeuchi did not confirm the reports.

Toyota decided Saturday on a recall in Japan
covering its latest Prius model and has notified domestic dealers, Japan’s largest newspaper, the Yomiuri, reported without
naming sources. It said Toyota would announce the move early this week after consulting with the Japanese government. Japan’s
Kyodo News agency and TV Asahi carried similar reports. Kyodo said at least 170,000 vehicles in Japan would be subject to
the recall.

Phone calls to the section at Japan’s transport ministry dealing with recalls went unanswered Sunday.
Two Toyota dealers reached in Tokyo referred queries to the company’s head office.

The brake problem affects about
270,000 Priuses that were sold in the U.S. and Japan starting last May. The company blames a software glitch and says it has
already fixed vehicles that went on sale since last month.

Bob Carter, a Toyota group vice president, sent an e-mail
message Friday night to U.S. dealers saying the automaker is working on a Prius repair plan and will disclose more details
early this week. At least 100 drivers of Prius cars in the U.S. have complained to the government that their brakes seemed
to fail momentarily when they were driving on bumpy roads. The government says the problem is suspected in four crashes and
two minor injuries.

Public awareness of the problem "has prompted considerable customer concern, speculation,
and media attention due to the significance of the Prius image," Carter said in the e-mail. "We want to assure our
dealers that we are moving rapidly to provide a solution for your existing customers."

Besides a full-fledged
safety recall, the company could simply ask owners to bring their vehicles in for repairs, since the brakes are not failing
completely. The lag occurs as the car switches between brakes for the gas engine and the electric motor—a process that
is key to the hybrid’s increased mileage.

Toyota has acknowledged receiving dozens of complaints about the Prius
in Japan.

There is high-level government concern in Japan about Toyota’s quality problems. Cabinet ministers have
expressed alarm and urged the company to move more quickly to ease consumer worries.

Media criticism of Toyota
has intensified since a news conference on Friday by Toyota President Akio Toyoda in which he offered an apology for the defects,
but few details about what the automaker would do about the Prius.