Decision on whether to recall Prius due soon

LOS ANGELES - Toyota, grappling with record United States recalls, says it told dealers to expect an update this week on steps the company plans to take to address complaints over brakes on the 2010 model Prius hybrid.

"We know dealers have customers coming to them who are concerned and we're trying to give them as much information as we can, as fast as we can," said John Hanson, a spokesman for Toyota's US sales unit.

Toyota, the world's largest carmaker, didn't tell dealers it will make a formal "announcement" on a Prius fix and hasn't determined whether a recall is necessary, he said. The carmaker plans to recall at least 311,000 Prius cars this week, the New York Times reported.

A recall of the latest Prius, the world's best-selling hybrid car, may further tarnish the reputation of the Japan-based company. The carmaker has already recalled 5.6 million cars and light trucks in the US since November to correct flaws linked to unintended acceleration, an issue Toyota says isn't connected to Prius brakes.

Toyota shares have fallen 20 per cent since January 21, when the carmaker began recalling vehicles to fix fuel pedals linked to unintended acceleration.

The National Highway Traffic Safety Administration (NHTSA) said it has 124 complaints from US drivers about Prius brakes. Toyota has said it's investigating reports Prius owners driving at low speeds on bumpy or icy roads have experienced moments in which the car continues to coast for about a second after the brakes are applied because of the anti-lock brake system.

But NHTSA isn't aware of a plan by Toyota to announce a fix for brakes on Prius hybrids this week, Olivia Alair, a spokeswoman for the agency, said.

The company said last week it altered software on Priuses built in Japan in January to correct the issue. A class action suit against the carmaker has been filed in Canada over alleged defects in the Prius braking system.

- BLOOMBERG