Toyota (TM) Prepares Prius Recalls

The hits keep coming for Toyota Motor Corp. (NYSE: TM) as the company now plans to recall at least 311,000 of its 2010 Prius hybrid models, mostly in the U.S. and Japan, after the vehicle caused a wave of complaints from owners about the braking system.

The decision to extend the already wide-ranging recall that has plagued the world's largest automaker is expected to come early this week. Toyota has already recalled eight million units of its most popular models due to gas pedals sticking or getting caught on the floor mats.

Shares of the Japanese company have been in a free fall for the last few weeks after the recall has placed doubt about safety for Toyota which has built its image upon high quality standards worldwide.

The problems with the Prius braking system are under investigation by U.S. regulators after drivers began to report that they had been unable to stop on uneven surfaces and that the anti-lock system was slow to respond.

Late last week the company did state that the problem had been identified and corrected in late January. Prius units that have been sold since have been since the correction will not be subject to the recall.

The braking system was altered to improve fuel efficiency when the model was redesigned for 2010. The vehicle was redesigned to allow the energy from the car’s wheels to recharge the battery using regenerative technology. The company found that the problem occurred when the car switched from the regenerative braking system to anti-lock.

Shares of Toyota are down 2.06 percent in midday trading on Monday to $73.17.

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