Known for its efficient Japanese-style supply chain, car maker Toyota Motor Corp announced that it will fix 378,000 models of its Prius hybrid models in the U.S. after it was discovered that a glitch in its coolant pump could cause the cars to lose power and overheat.

The recall affects Prius models from 2004 to 2007 and represents a breakdown in the company's supply chain. Toyota has not received any reports of accidents or injuries resulting from the faulty pump. However, Toyota fears that the hybrid electric water pump - standard on the Prius - could potentially slow, causing overheating in the engine. If left unfixed, the engine could conceivably power down.

Toyota will pay for the retrofits that will most likely cost the car maker roughly $100 in labor for each Prius fixed at a U.S. dealership. Because of its manufacturing errors, Toyota will face increased costs and a further strain on its supply chain to produce the necessary replacement parts. All the while, the company is focused on meeting demand for its new models as worldwide consumer confidence recovers following the Recession.

The recall could further hurt Toyota's image as a brand devoted to quality. Earlier this year, the company was mired in controversy amid a massive recall following safety concerns in both its Toyota and Lexus brands, although the company was never accused of negligence.
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