Prius Recall/Complaints - The Glass is Half Empty (NYSE:TM)

Despite the negative Nancy press on the Toyota Prius, Toyota Motor (NYSE:TM) stock is up 2.6% since Friday and more than 5% since falling below $72 on Feb 23rd (which appears to be the bottom). Prius complaints are coming in at rapid fire and it doesn't necessarily mean there's an epidemic of bad gas pedals.

Part of the rise is from increased consumer awareness, but the relentless negative media coverage means consumers are also looking for problems that might not actually be there. Review Prius Recall? What you Need to Know

Spike in Prius complaints may not be all it seems
Complaints of runaway Priuses spike, but it could have something to do with psychology

NEW YORK (AP) -- Reports of sudden acceleration in the Toyota Prius have spiked across the country. But that doesn't mean there's an epidemic of bad gas pedals in the popular hybrid.

Experts on consumer psychology say the relentless negative media attention Toyota has received since the fall makes it much more likely that drivers will mistake anything unexpected -- or even a misplaced foot -- for actual danger.

"When people expect problems, they're more likely to find them," said Lars Perner, a professor of clinical marketing at Marshall School of Business at University of Southern California.

In just the first 10 weeks of this year, 272 complaints have been filed nationwide for speed control problems with the Prius, according to an Associated Press analysis of unverified complaints received by the National Highway Traffic Safety Administration.

By comparison, only 74 complaints were filed in all of last year, and just eight the year before that.

For problems with the brakes, rather than the gas, the figures are even more stark: 1,816 filed so far this year versus just 90 in all of 2009 and fewer than 20 in every other year of the last decade. Toyota recalled 440,000 Priuses on Feb. 8 because its antilock brakes seemed to fail momentarily on bumpy roads.

It's doubtful the Priuses of the past two years suddenly became more dangerous than those made in years past. After all, Toyota's own recall for Prius floor mats that can trap gas pedals covers model years 2004 to 2009.

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SOURCE: http://finance.yahoo.com/news/Spike-in-Prius-complaints-may-apf-3142640701.html?x=0&sec=topStories&pos=main&asset=&ccode=