Toyota recall pact with NY sought by other states

Toyota Motor Corp's logo is seen on its dealership in Tokyo February 24, 2010.

NEW YORK (Reuters) - Toyota Motor Sales USA Inc agreed on Wednesday to take steps to help inconvenienced owners of more than 500,000 recalled vehicles in New York state, prompting other states to seek similar deals.

Under a program announced by state Attorney General Andrew Cuomo, the U.S. arm of Toyota Motor Corp promised expedited repairs and other "special accommodations" to New York residents who bought Toyota vehicles from dealers in that state.

Toyota agreed to pick up and return vehicles slated for repair, provide alternative transportation such as rental cars or taxi reimbursement while owners are "unable or unwilling" to use their vehicles, and arrange for the transport of owners to their dealerships or workplaces, Cuomo said.

The special assistance package, to be provided at no cost to vehicle owners or dealers, was unveiled as Toyota President Akio Toyoda prepared to testify before the U.S. Congress.

The recall crisis has shattered confidence in the world's largest automaker, whose vehicles have long been known for their reliability and high resale value.

Within hours, a spokeswoman for the National Association of Attorneys General told Reuters the group "had made a request to Toyota to extend New York's agreement to all states." At least four other states -- California, Florida, Airzona and Massachusetts -- confirmed that they had contacted Toyota.

California has more Toyota owners than any other state.

A spokesperson for one of the states in the coalition told Reuters the Japanese automaker was considering their request and would get back to them. Toyota did not respond to a request by Reuters for comment.

Toyota has in recent months recalled more than 8.5 million vehicles worldwide over such issues as unintended acceleration and braking problems.

Cuomo said the assistance program announced Wednesday was the first of its kind with a U.S. state.

"The loss of a vehicle is a significant economic loss," Cuomo said at a Manhattan news conference as he stood in front of a Camry, one of 19 Toyota vehicles he said were operated by his office and subject to recall. "We are interested in providing short-term practical relief," he said.

Cuomo said his office was still investigating the Toyota recalls, and that "there may be other remedies" imposed.

"Did Toyota know about these issues earlier than we were led to believe," he asked, without providing an answer. "Who knew what, when?"

The attorney general has set up a website, (www.nytoyotahelp.com), for affected owners.

Cuomo is widely considered to be the top Democratic candidate in this year's New York governor's race.

But he declined to say whether he planned to run when asked by a reporter about his plans.

(Reporting by Jonathan Stempel, editing by Matthew Lewis)