Pedal maker thrust into spotlight as recalls widen

Bloomberg News

SOUTHFIELD, Mich. — CTS Corp. was honored three times by Toyota for the quality of the accelerator pedals that have now thrust the 114-year-old electronics supplier into the center of a global recall of about 4.1 million vehicles.

Toyota’s sales freeze last week intensified the focus on Elkhart, Ind.-based CTS since it was singled out after the world’s largest automaker’s Jan. 21 U.S. recall of autos whose pedals might “stick.” CTS expressed “deep concern” Friday about how its parts were being portrayed.

The supplier’s prominence in the case is unusual because automakers usually shield such details. General Motors and Ford in November resisted identifying a parts maker until India’s Rico Auto Industries said it was the cause of a shortage that shut GM and Ford factories in the United States.

“CTS was put on the defensive right away, and it was evident there seemed to be finger pointing going on,” said Rebecca Lindland, an analyst at consultant IHS Global Insight. “It seemed like they were the sacrificial lamb.”

Toyota has said its priority remains restarting five North American assembly lines idled by the recall and getting replacement parts to dealers for models already sold, not assessing any blame in the sudden-acceleration cases.

“We are currently doing all we can to ensure our customers’ safety,” Hideaki Homma, a spokesman for the automaker, said. “I am not aware of any discussion yet on the question of who will bear responsibility.”

CTS began production of a modified pedal approved by Toyota last week that is being shipped to factories, both companies have said.

In last week’s statement, CTS said the pedals shouldn’t be linked to any cases of “sudden unintended acceleration,” which it said have been reported in Toyota autos as far back as 1999. CTS said it first supplied parts to Toyota for 2005 model-year vehicles. Mitchell Walorski, director of CTS investor relations, didn’t return a phone call or e-mail seeking comment.