Toyota Prius' Brake Issue Adds To Toyota's Headache

Toyota Prius, the most high-tech hybrid car to date, could be the latest Toyota to suffer from quality issues—this time with the regenerative brakes. Japan’s Transport Ministry has ordered Toyota to investigate 14 reports of momentary brake failure filed since the third-generation Prius went on sale in May.

In the U.S., there are at least 136 complaints regarding the brake issue. Complaints, in both Japan and the U.S., centered around the brakes failing to function momentarily, after driving over slippery or uneven surfaces.

Intended to capture the car's kinetic energy and use it to recharge the batteries, regenerative brakes are a key piece of green technology that improves fuel economy, which is why almost all hybrids come with it. This latest inquiry could cast doubts over not only the Prius, but the entire hybrid industry as a result.

Toyota said that the regenerative brake system currently used is different from the ones previously used. While a defect with the brakes could not be ruled out, the company is still investigating the possible problems before deciding on a recall.

Whatever the outcome, there is no question that this report comes at a bad time for Toyota. The once-undisputed quality leader in the auto-industry is grappling with massive recalls in the U.S., and to a lesser extent in Europe and China. Its affected share price would recover over time, but can its battered reputation do the same?