CTS Comments on Toyota’s January 21 Safety Voluntary Recall
January 27 2010 - 2:39PM
Business Wire
CTS Corporation (NYSE: CTS) today provided comments on Toyota’s
recent accelerator pedal recall. As previously announced by Toyota,
the January 21 voluntary recall results from what Toyota described
as “a rare set of conditions which may cause the accelerator pedal
to become harder to depress, slower to return or, in the worst
case, stuck in a partially depressed position.” Toyota said this
condition “is rare and occurs gradually over a period of time.”
As has been publicly stated by Toyota, we have no knowledge of
any accidents or injuries that have resulted from this rare
potential condition. Based on information that Toyota has provided
us, we are aware of fewer than a dozen instances where this
condition has occurred, and in no instance did the accelerator
actually become stuck in a partially depressed condition.
As Toyota stated, this recall is different from and unrelated to
the “sudden, unintended acceleration issue” which was the subject
of the November 2009 Toyota recall. In the November recall, the
pedals in Toyota models dated back to model year 2002. CTS became a
pedal supplier in 2005. Accordingly, our products are not
implicated by the November 2009 recall. The products we supply to
Toyota, including the pedals covered by the recent recall, have
been manufactured to Toyota’s design specifications.
Toyota is a small, but important, customer of CTS, representing
approximately 3% of our annual sales. CTS has been actively working
with Toyota for awhile to develop a new pedal to meet tougher
specifications from Toyota. The newly designed pedal is now tested
and parts are beginning to ship to some Toyota factories.
About CTS
CTS is a leading designer and manufacturer of electronic
components and sensors and a provider of electronics manufacturing
services (EMS) to OEMs in the automotive, communications, medical,
defense and aerospace, industrial and computer markets. CTS
manufactures products in North America, Europe and Asia. CTS' stock
is traded on the NYSE under the ticker symbol "CTS.” To find out
more, visit the CTS Web site at www.ctscorp.com.
Safe Harbor Statement
This press release contains statements that are, or may be
deemed to be, forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to, any
financial or other guidance, statements that reflect our current
expectations concerning future results and events and any other
statements that are not based solely on historical fact. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof and are based on
various assumptions as to future events, the occurrence of which
necessarily are subject to uncertainties. These forward-looking
statements are made subject to certain risks, uncertainties and
other factors, which could cause our actual results, performance or
achievements to differ materially from those presented in the
forward-looking statements, including, without limitation: changes
in the economy generally and in respect to the businesses in which
CTS operates, including those resulting from the current global
financial and credit crisis; pricing pressures and reduction in
demand for CTS’ products, especially if economic conditions do not
recover or continue to worsen in CTS’ served markets, including but
not limited to: the automotive, computer equipment or
communications markets; disruption, uncertainty or volatility in
the credit markets that could adversely impact the availability of
credit already arranged by CTS and the availability and cost of
credit in the future; the financial condition of our customers,
including the ability of customers (especially those that may be
highly leveraged and those with inadequate liquidity) to maintain
their credit availability or ongoing viability; risks associated
with CTS’ international operations, including trade and tariff
barriers; currency fluctuations and their effects on our results of
operations and financial position; changes in performance of equity
and debt markets that could affect the valuation of the assets in
CTS’ pension plans and the accounting for pension assets,
liabilities and expenses; political and geopolitical risks; rapid
technological change in the automotive, communications and computer
industries; reliance on key customers; CTS’ ability to protect its
intellectual property; and the outcome of the recent Toyota recall.
For more detailed information on the risks and uncertainties
associated with CTS’ business, see the reports CTS files with the
SEC, available at
http://www.ctscorp.com/investor_relations/investor.htm. CTS
undertakes no obligation to publicly update its forward-looking
statements to reflect new information or events or circumstances
that arise after the date hereof, including market or industry
changes.
CTS (NYSE:CTS)
Historical Stock Chart
From Apr 2024 to May 2024
CTS (NYSE:CTS)
Historical Stock Chart
From May 2023 to May 2024