Toyota in the filings…

February 24, 2010

Earlier today, we looked at Toyota’s own disclosures about the massive recall. But there’s also been a number of other companies that are disclosing all sorts of things related to the recall.

Among them was CTS (CTS), which disclosed in the 10-K that it filed yesterday that it too had received subpoenas. Here’s a snip from that filing:

We manufacture accelerator pedal assemblies for a number of automobile manufacturers, including subsidiaries of Toyota Motor Corporation (Toyota). We have supplied accelerator pedal assemblies to Toyota since the 2005 model year. Sales to Toyota have accounted for approximately 3.2%, 2.5% and 1.9% of our annual revenue for the years ended December 31, 2009, 2008 and 2007, respectively. We manufacture all pedal assemblies to specifications approved by the customer, including Toyota…One United States Attorney and the Securities and Exchange Commission have issued subpoenas to us regarding the facts and circumstances surrounding the Toyota voluntary pedal recall.

CTS doesn’t provide any additional details in the filing and earlier news releases by the company, including this one from Jan. 29 try to distance the company from Toyota’s problems. Still, it’s hard to spin a subpoena from a US Attorney. If nothing else, it’s a distraction, not to mention hefty legal fees.

We also found a few other companies — primarily in the automotive space — that have managed to work the Toyota recall into their filings. One surprise was from Priceline (PCLN), which in their 10-K filed last week included the Toyota recall as a risk factor, noting that it could create “further strain on rental car companies— fleets and increased retail rental car rates.”

Also including the Toyota recall in their risk factors was AutoNation (AN), which noted that it owns 21 Lexus and Toyota dealerships. Group 1 Automotive (GPI) didn’t list the recall as a risk factor, but noted in its 10-K that the recall could have a material impact on the company’s results because Toyota brands accounted for over 36% percent of sales in 2009. And AK Steel (AKS) noted that Toyota was an important customer and that the recall could have a “negative impact” on demand for the company’s products.

UPDATE 6:15 pm: Add Penske Automotive Group (PAG) to the list of companies warning about the Toyota recall in their 10Ks.

Image source: Nick Ut/Associated Press

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