The newest Toyota recall affects approximately 106,000 Prius hybrids globally built from 2001 to 2003 for a fault with the electric power steering system. The Japanese automaker said the voluntary action affects around 52,000 Prius models sold in the United States.

“If the steering wheel is repeatedly and strongly turned to the full-lock position, there is a possibility the nuts securing the pinion shaft in the steering gear box assembly may become loose,” Toyota said in a statement. The company added that if the owner leaves the condition uncorrected, over time they will gradually notice significant increased steering effort when making a left turn.

Toyota said its dealers will install “improved nuts” that secure the pinion shaft at no charge, with the repair expected to take approximately 4 hours. Owners of the affected models in the U.S. will be notified by first class mail in early July, 2011.

In a separate action, Toyota’s US division also announced a recall for 34 Venza AWD and 16 Sienna AWD vehicles from the 2011MY to replace an insufficiently heat treated front right-hand driveshaft.

“Due to insufficient heat treatment, there is a possibility that the front right-hand driveshaft may break,” said Toyota adding that if this happens, engine power will not be transferred to the wheels and the vehicle will roll to a stop. This recall is expected to begin in June.

The all-new Prius V five-seater minivan isn’t due to arrive in U.S. showrooms until this fall, yet Toyota is already looking into the development of a larger model capable of seating seven passengers as well as carrying their luggage, according to Bob Carter, Toyota Division general manager. The larger Prius won’t be based on the Japanese market Prius Alpha nor the European specification Prius+, both of which pack a retractable third row of seats into the Prius V’s cargo area.

Carter told Autoweek that while the company has not made a final decision yet, the concept of a true 7-seater Prius minivan for the North American market is “being seriously studied”. He added that the three-row Prius would have to be based on a dedicated platform and meet certain criteria such as feature an aerodynamic shape, be able to return at least 40mpg and have a strong value-price equation.

Another Toyota executive, corporate manager of product planning Ben Mitchell, confirmed that his team has put several proposals for new hybrid vehicles in different segments on the table, including that of a larger 7-seater Prius as well as hybrid versions of the Sienna minivan and Venza crossover.

Honda's sporty-looking CR-Z hybrid will finally get the performance to back its looks, as the Japanese carmaker teamed up with its tuning partner Mugen Euro to develop a high-performance version of the hybrid model. As we wrote earlier this year, the car will be unveiled at the Goodwood Festival of Speed in July, but until then, you can take a look at the first official photos of the car to see if they match the sketches released by Honda two months ago.

The Japanese company says development of the CR-Z Mugen is on track, with “performance figures already looking promising”. Honda revealed that early tests with a prototype car based on a standard CR-Z and a mid-tune engine have given 0-60 mph (96 km/h) sprint times around that of the European market Civic Type R (6.6 seconds). Later on, Mugen increased output by another 15 percent and reduced the chassis' weight by 50 kilograms, so that overall performance is expected to be even better than the Type R's.

The car will feature modifications to both the 1.5-liter i-VTEC petrol engine and the Honda IMA system in order to boost power and torque. Mugen Euro didn't reveal any output figures, but referred to the fuel consumption, deeming it encouraging.

"We've retained the three driving modes from the standard car and economy ranges from 50+mpg (41.6 mpg US) in 'eco' mode to mid-30 mpg (29 mpg US) when tapping into the supercharged power in a special 'Mugen' mode," said Colin Whittamore from Mugen Euro.

Engine and hybrid system aside, the CR-Z Mugen will also benefit from upgrades to the brakes and suspension, as well as from using lightweight components such as a carbon fiber bonnet and forged alloys to lower the overall mass. As the pictures show, the CR-Z Mugen sports a new body kit with upgraded front and rear bumpers, plus a rear wing and diffuser to improve aerodynamics.

For the time being, the CR-Z Mugen is treated as a pure concept study, but as Honda has shown in the recent past with the 240HP Civic Type R Mugen in 2009, there’s a good chance we may see a limited production run in the very near future.

By Dan Mihalascu

The Lexus CT200h compact hybrid will debut in racing car guise at an endurance race this weekend at the legendary Nurburgring Nordschleife circuit. Entered by Gazoo Racing, the same organization that races the Lexus LFA, the CT200h will compete in the Adenauer ADAC Rundstrecken-Trophy. Around 200 cars will line up at the start of the six hour-race.

The Gazoo Racing CT features the Japanese automaker’s Lexus Hybrid Drive, but has a larger capacity 2.4-liter petrol engine instead of the factory 1.8-liter unit for better performance. At start-up and during braking, the car uses only the electric motor, consuming no fuel and therefore producing zero emissions. The internal combustion engine takes over at higher speeds, with the electric motor providing extra power under acceleration and at racing speeds.

The race car shares with the road-going CT200h the batteries and hybrid system, with the latter selecting the most appropriate power sources and capturing energy through regenerative braking to charge the battery so that the electric motor never runs out of juice.

According to Lexus, the Gazoo Racing CT requires less fuel and emits less CO2 and NOx gases than any equivalent petrol or diesel race car it will compete with. The car will be entered in the SP4 Class and will be driven by three experienced pilots: Kumi Sato, Masahiko Kageyama and Minoru Takaki.

By Dan Mihalascu

Kia is ready to talk pricing on its first ever hybrid vehicle in the States, the all-new Optima Hybrid, which we first saw at last year’s Los Angeles Auto Show. A sister model to Hyundai’s Sonata Hybrid, with which is shares the same gasoline-electric powertrain, the Optima Hybrid will reach U.S. showrooms in June with a starting price of $26,500, not including a $750 destination and handling fee that lifts the cost to $27,250. By comparison, the hybrid version of the Sonata starts at $25,795, excluding destination charges.

The Optima’s parallel hybrid powetrain makes use of a modified 2.4-liter Theta II engine without direct-injection that runs on the Atkinson cycle and delivers 166HP and 151 lb-ft of peak torque. The four-cylinder gasoline unit is linked to a 6-speed automatic transmission and an electric motor capable of delivering 40.2 horsepower (30 kW) and 151.2 pound-feet of torque when electric only. When in hybrid mode, the combined output of the two motors comes to 206.2 horsepower and 195.4 pound-feet of torque. A set of lithium polymer batteries from LG Chem completes the hybrid package.

Kia claims the Optima Hybrid can deliver up to 35 miles per gallon in city driving and 40 miles per gallon on the highway.

Standard features include 16-inch alloy wheels, eight-way power adjustable driver's seat, dual zone automatic temperature control with rear vents, push-button start with smart key and the company's UVO powered by Microsoft hands-free, voice-activated infotainment and communications system.

For an additional $5,000, customers can opt for the Hybrid Premium Technology Package, that ups the luxury ante with several comfort and convenience features. These include a panoramic sunroof, 17-inch alloys, four-way power adjustable front passenger's seat, driver's seat memory, heated and cooled front seats, heated rear seats and steering wheel, HID headlamps with automatic leveling, leatherette-wrapped center fascia, auto-dimming rear-view mirror, a navigation system with back-up camera and SIRIUS Traffic, and an upgraded eight-speaker Infinity audio system.