DIGEST

Toyota plans U.S. recall of Lexus vehicles

Toyota said it would launch a U.S. recall of certain Lexus models. The automaker previously announced a worldwide Lexus recall over engines that can stall while the vehicle is in motion.
Toyota said it would launch a U.S. recall of certain Lexus models. The automaker previously announced a worldwide Lexus recall over engines that can stall while the vehicle is in motion. (Toru Yamanaka/afp Via Getty Images)
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Saturday, July 3, 2010

AUTOMOTIVE

Toyota plans U.S. recall of Lexus vehicles

Toyota said Friday that it intends to recall 138,000 Lexus vehicles in the United States to fix faulty engines, in the latest quality problem to afflict the Japanese automaker.

The company said flaws in valve springs, a crucial engine component, could make the vehicle stall while in motion. Toyota said in a statement that it plans to file paperwork with the U.S. government on the recall next week. The recall affects certain GS, IS and LS vehicles from the 2006-2008 model years powered by 4.6 and 5.0 liter V8 engines and 3.5 liter V6 engines. No accidents or injuries have been reported. Vehicles from the 2009 and 2010 model years are not affected.

-- Associated Press

AIRLINES

Delta, US Airways drop landing-rights swap

Delta Air Lines and US Airways Group won't pursue a swap of takeoff and landing slots in New York and Washington under regulators' terms, a setback to strengthening their holds on two eastern U.S. markets.

The airlines instead plan to challenge in federal court the U.S. requirement that they give rivals more access to flights at New York's LaGuardia Airport and Washington's Reagan National Airport, according to a filing with the Transportation Department and Federal Aviation Administration.

Delta had sought to expand at LaGuardia to complement its hub at Kennedy International Airport. US Airways sought to build its base in Washington. The decision avoids a requirement that some flight slots be auctioned, opening the door to low-cost rivals.

-- Bloomberg News


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