Toyota set to recall 2010 Prius models

Japanese carmaker Toyota Motor Corp. said it was preparing a global recall of its new Prius model, risking a fresh dent to its battered reputation for quality and reliability.

As U.S. plants resumed production of eight models involved in an earlier safety recall, the world’s largest automaker readied action on the hybrid car in Japan as early as today.

Steps to fix problems with delayed braking in certain road conditions would follow in the United States, Europe and other markets, a source familiar with the plans said.

Toyota said yesterday it restarted production at six U.S. and Canadian plants “with no issues,” a week after halting work, as problems with unintended acceleration spiraled into the recall of more than 8 million vehicles worldwide.

The company, which has boosted its green credentials with the low-emission Prius, has said it was discussing with safety authorities worldwide how to resolve a software glitch on the Prius.

Toyota faces further scrutiny tomorrow, when its North America CEO Yoshimi Inaba testifies to Congress in front of the House Oversight Committee in Washington.

Transportation secretary Ray Lahood and National Highway Traffic and Safety Administration Administrator David Strickland will also testify.