By Dan Strumpf and Yuri Kageyama
AP Business Writers
Toyota is recalling nearly half a million cars, most of them
large sedans sold in the U.S., for problems that can cause the
steering wheel to lock up. It's the latest indication that the
automaker is still struggling with vehicle problems even as it
works to overhaul quality control.

The recall, announced Thursday, affects 412,000 vehicles in the
U.S. -373,000 Avalon sedans and 39,000 Lexus LX 470 SUVs. The
recall is Toyota's largest since announcing it would fix 600,000
Sienna minivans over rusting spare tire holders in April.

Toyota has been embroiled in its recall crisis since October,
when it announced a recall of 5.3 million cars and trucks to fix
floor mats that can trap pedals and cause unintended acceleration.

A number of recalls have followed, from sticky gas pedals to
braking problems with the Prius hybrid to rusting frames in the
Tacoma pickup.

Thursday's announcement brings the size of Toyota's recalls to
about 9.5 million cars and trucks in the U.S. since October.

"I don't think it's going to end anytime quickly or easily,"
said George Magliano, auto analyst with the consulting firm
IHS-Global Insight, of the company's recalls. "Toyota had this big
run of growth. The more they grew volume and market share, the more this (quality) system started to develop cracks."
The Avalons recalled in the U.S. range from the 2000 model year
through to 2004 and have improper casting of the steering lock bar
- the component that locks the steering wheel when the vehicle is
shut off -that can cause a crack to form on the surface.

Over time, the crack can expand, which can cause the steering
wheel to become difficult to unlock when stationary. In some
circumstances, the problem can cause the steering wheel to lock up
during driving, Toyota said.

Three unconfirmed accidents with no injuries have been reported
because of the problem, Toyota said. It will fix the Avalon
steering problem by replacing a part called the steering column
bracket, which houses the lock bar.

For the Lexus LX 470, Toyota is recalling the 2003-2007 model
years to fix a different steering shaft problem, which could cause
loss of steering control. No accidents have been reported from the
problem, the company said.

For both repairs, customers will begin receiving letters in
August asking them to bring their cars to dealers.

The LX 470 problem also affects 9,670 vehicles in Japan, two
Land Cruiser models. Toyota is recalling another 6,750 vehicles in
Japan, a sedan called the Pronard, for a problem similar to that
experienced by the Avalon.

Toyota has been working to overhaul its quality control after
being criticized for its slow response to vehicle flaws. It is
hiring thousands of engineers to check for problems and appointing
chief quality officers in its major regions.

"Toyota is continuing to work diligently to address safety
issues wherever they arise and to strengthen our global quality
assurance operations," said Steve St. Angelo, Toyota chief quality
officer for North America.

Still, the recalls have caused the company's sales to lag in the
U.S. this year, following years of rapid growth. Sales are up 10
percent for the first six months of the year, while sales for the
broader industry have increased 17 percent.

The automaker has been luring customers back into showrooms with
deep discounts and promotions. They drew buyers like Mindy Cohen,
who picked up a new Corolla from World Toyota in Atlanta on
Thursday. Cohen said she paid about $13,500 for the compact sedan,
nearly $2,000 off the sticker price. She also said that problems
with Toyota cars and trucks have been overblown.

"Even if it was an issue, it's been fixed," she said. "All cars
have problems."
Toyota was slapped with a record $16.4 million fine in the
United States for failing to promptly tell the government about its
car defects. It remains under investigation by a federal grand jury
in New York and by the Securities and Exchange Commission.

The company also faces more than 200 lawsuits in the U.S. tied
to accidents involving defective automobiles, the lower resale
value of Toyota vehicles, and a drop in its stock value.

---
Kageyama reported from Tokyo.